India's Housing Market Stabilizes Amid Rising Prices in 2026
India's residential real estate market experienced stability and sustained demand in early 2026, despite rising property prices. Sales reached nearly 96,000 homes with little change in new launches. Bengaluru led in sales, and major cities faced affordability challenges. Market growth focused on demand quality, inventory discipline, and buyer confidence.
In the first quarter of 2026, India's residential real estate sector has shifted into a more stable, demand-driven phase, according to a report by PropTiger. The data reveals robust housing sales and steady new launches in major urban areas, even as property prices continue their upward trajectory.
The Real InsightT - Residential Q1 2026 report highlights that approximately 96,000 homes were sold across the country's top eight cities during this period. Although this marked a 2.2 percent decline from the previous year's figures, it also represented a 1 percent uptick from the last quarter. New housing supply showed little variation from a year earlier, suggesting moderation from the rapid pandemic-induced growth.
Bengaluru distinguished itself as the leading market, witnessing a 33 percent year-on-year increase in housing sales, credited to rising employment opportunities from Global Capability Centres and startups. Meanwhile, the Mumbai Metropolitan Region (MMR) maintained its status as India's largest housing market by sales volume and value, despite a slight dip in yearly growth. As property prices soar, affordability pressures loom, particularly in cities lacking commensurate income growth. However, factors like stable interest rates and improved infrastructure continue to bolster buyer confidence.
(With inputs from agencies.)
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