India’s housing market witnessed a slowdown in the first quarter of 2026, with total sales across the top nine cities falling below the 1 lakh unit mark for the first time in 18 quarters.
According to PropEquity, housing sales declined by 13% year-on-year and 6% quarter-on-quarter, reaching 98,761 units in Q1 2026. New launches also dropped significantly, falling 19% YoY and 8% QoQ to 92,411 units, largely due to reduced supply across major cities.
Bengaluru Leads, Delhi-NCR Shows Growth
Bengaluru emerged as the top-performing housing market, recording 17,991 units sold, marking 16% QoQ growth and 3% YoY growth—a first for the city in terms of leading both sales and supply.
Meanwhile, Delhi-NCR stood out as the only region to post strong growth on both supply and sales fronts, with 12,141 units sold, reflecting 13% YoY growth.
However, most other cities, including Mumbai, Pune, Hyderabad, and Thane, reported a decline in sales, highlighting a broader market slowdown.
Total Absorption (Units)
| Location | Q1-2025 | Q4-2025 | Q1-2026 | Q-o-Q | Y-o-Y |
|---|---|---|---|---|---|
| Bengaluru | 17508 | 15546 | 17991 | 16% | 3% |
| Chennai | 4959 | 4848 | 4765 | -2% | -4% |
| Hyderabad | 13725 | 12190 | 11546 | -5% | -16% |
| Kolkata | 4229 | 4297 | 3872 | -10% | -8% |
| Mumbai | 11453 | 10568 | 9186 | -13% | -20% |
| Navi Mumbai | 8340 | 8835 | 7157 | -19% | -14% |
| Pune | 21640 | 17643 | 16144 | -8% | -25% |
| Thane | 21025 | 19305 | 15959 | -17% | -24% |
| Delhi NCR | 10723 | 12295 | 12141 | -1% | 13% |
| Total | 113602 | 105527 | 98761 | -6% | -13% |
Samir Jasuja, Founder & CEO, PropEquity said,
“Housing sales continued to moderate in the first quarter of 2026 with Delhi-NCR and Bengaluru emerging as outliers. This reduction is on account of low supply across most cities. Close to 22,000 lesser units were supplied in Q1 2026 as compared to the same period last year.”
Supply Trends Across Cities
On the supply side, Delhi-NCR recorded the strongest growth, with 17,227 units launched, registering 89% YoY growth and 8% QoQ growth, making it the second-largest market in terms of new supply.
Bengaluru followed closely with 17,782 units launched, showing 10% QoQ growth, though witnessing a 24% YoY decline.
Chennai recorded a 12% QoQ increase but saw a sharp 62% YoY drop, while all other major cities experienced a decline in new project launches.
New Supply (Units)
| Location | Q1-2025 | Q4-2025 | Q1-2026 | Q-o-Q | Y-o-Y |
|---|---|---|---|---|---|
| Bengaluru | 23293 | 16237 | 17782 | 10% | -24% |
| Chennai | 7663 | 2603 | 2909 | 12% | -62% |
| Hyderabad | 17649 | 12222 | 10938 | -11% | -38% |
| Kolkata | 3121 | 3529 | 2588 | -27% | -17% |
| Mumbai | 8622 | 9358 | 7162 | -23% | -17% |
| Navi Mumbai | 8359 | 8071 | 6367 | -21% | -24% |
| Pune | 18929 | 14923 | 13084 | -12% | -31% |
| Thane | 17990 | 17587 | 14354 | -18% | -20% |
| Delhi NCR | 9092 | 15995 | 17227 | 8% | 89% |
| Total | 114718 | 100525 | 92411 | -8% | -19% |
Jasuja added,
“While Delhi-NCR and Bengaluru saw similar level of housing supply in Q1, the former witnessed lesser absorption as compared to the latter as high-ticket launches impacted the sales in Delhi-NCR. Also, it is for the first time post-covid that Delhi-NCR has seen more supply than Pune, Hyderabad and Thane – the traditional high supply markets.”
Market Outlook
The decline in housing sales highlights the impact of reduced supply and cautious market sentiment, even as select markets like Bengaluru and Delhi-NCR continue to demonstrate resilience.
Going forward, improved supply pipelines and balanced pricing strategies will be crucial in reviving demand across India’s key residential markets.
