Bengaluru Leads India’s Housing Market with 24% Price Growth in Q1 2026
Bengaluru emerged as the strongest-performing residential real estate market in India during Q1 2026, recording the highest year-on-year housing price growth among the country’s top eight cities, according to the latest Real INSIGHT – Residential Q1 2026 report released by PropTiger, part of Aurum PropTech Limited.
The report highlighted Bengaluru’s strong performance across multiple indicators, including sales growth, balanced supply-demand dynamics, and significant price appreciation.
Bengaluru Sees Sharpest Price Rise
The average housing price in Bengaluru rose by 24% year-on-year and 3% quarter-on-quarter to reach Rs 9,785 per sq. ft. in Q1 2026. This made Bengaluru the second most expensive residential market after Mumbai Metropolitan Region (MMR), where average prices stood at Rs 15,120 per sq. ft.
The report noted that Bengaluru’s housing market continued to benefit from strong demand driven by the city’s Global Capability Centre (GCC) ecosystem and startup sector.
According to the report:
“The GCC and startup employment engine continues to prove more durable than conventional IT hiring cycles, providing Bengaluru with a structurally differentiated demand base.”
Interestingly, Bengaluru’s price growth accelerated from 14% in Q1 2025 to 24% in Q1 2026, even as several other cities witnessed moderating growth trends.
Housing Prices Rise Across Major Cities
Average housing prices across India’s top eight residential markets — Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai MMR, Pune, and Delhi-NCR — registered year-on-year growth between 3% and 24% in Q1 2026.
Mumbai MMR maintained its position as the country’s costliest housing market, with average prices increasing 20% YoY and 8% QoQ to Rs 15,120 per sq. ft.
Delhi-NCR recorded 18% YoY price growth at Rs 9,534 per sq. ft., significantly lower than the 43% growth seen during Q1 2025.
The weighted average housing price across the top eight cities crossed the Rs 10,000 per sq. ft. mark for the first time, reaching Rs 10,050 per sq. ft. in Q1 2026.
Sales and Supply Trends
Housing sales across the top eight cities stood at 95,973 units during Q1 2026, reflecting a marginal 2.2% year-on-year decline but a 1% increase on a quarterly basis.
Sales growth was strongest in:
- Bengaluru: up 33% YoY
- Chennai: up 43% YoY
- Hyderabad: up 25% YoY
- Delhi-NCR: up 11% YoY
Meanwhile, sales declined in Mumbai MMR, Pune, Kolkata, and Ahmedabad.
Mumbai MMR remained the highest-selling residential market with 26,116 units sold, followed by Bengaluru with 15,603 units.
On the supply side, new housing launches across the top eight cities totalled 93,065 units, remaining broadly stable year-on-year.
Premium Housing Continues to Dominate
The report observed that a large share of new launches in cities such as Bengaluru, Mumbai MMR, and Delhi-NCR remained concentrated in premium and upper mid-income housing segments.
According to the report, unsold inventory in higher ticket-size categories may experience slower absorption due to longer buyer decision cycles and lower transactional liquidity compared to affordable housing.
However, developers continue to focus on maintaining pricing discipline and project viability rather than pursuing aggressive discount-led sales strategies.
Market Moving Towards Stability
Prakash Tejwani, CEO of PropTiger, said the Indian residential market is transitioning towards a more disciplined and mature growth phase.
He noted that growth is increasingly being driven by demand quality, inventory management, and buyer confidence rather than speculative activity.
The report added that the remainder of 2026 will depend on how effectively developers balance premium inventory absorption with affordability-focused demand in the mid-income housing segment.
