Residential Dynamics Report Q1 2026

Residential sales rose 8% year-on-year to 70,631 units in Q1 2026, rebounding from the 12% Y-o-Y decline seen in Q1 2025. This recovery can be attributed to exceptional growth in premium housing, with properties priced above INR 10 million seeing a remarkable 30% Y-o-Y increase. Particularly strong performance came from the INR 15-30 million segment (67% growth), which helped offset the 24% Y-o-Y contraction in the sub-INR 10 million housing segment. The trend indicates a significant market pivot toward high-end residential properties, with premium and luxury segments gaining momentum as property values continue to appreciate substantially across major Indian urban markets, recording year-on-year gains between 8% and 20%.

Housing sales across India's top seven cities remained heavily concentrated in Bengaluru, Mumbai, Pune, and Delhi NCR during Q1 2026, with these four cities—each exceeding 10,000-unit sales—capturing approximately 77% of the total 70,631 units sold. Even with supply surpassing demand, the 8% year-on-year rise reflects solid buyer interest, reversing the Y-o-Y decline seen in Q1 2025. . This pattern reflects sustained consumer confidence in projects by established developers who offer reliable construction timelines and potential for investment appreciation, particularly in prime locations.

The residential real estate market is showing a pronounced shift in buyer preferences with declining demand for sub-INR 10 million housing and a growing affinity for high-value homes. This upswing in the higher-priced segment demand has been the primary driver of overall housing sales growth. While sales of apartments priced under INR 10 million have dropped by approximately 24% compared to Q1 2025, the housing segment priced at INR 10 million and above has seen exceptional growth of about 30% during the same period. Consumers displayed an increased willingness to purchase high-value homes, catalyzing a substantial shift in market dynamics. Analysis of the top seven urban markets reveals that the premium segment (INR 10 million+) now accounts for 71% of total sales, up from 59% in Q1 2025. Several factors fueled this premium housing demand: growth in affluent population segments, higher disposable incomes, evolving preferences for spacious living environments in prime locations, desire for technologically sophisticated, future-ready residences, and the fact that affluent buyers are less sensitive to short-term economic fluctuations.

Q1 2026 set a new quarterly record for residential launches with 90,023 new units, up 13% year-on-year and 32% quarter-on-quarter. Bengaluru led with 27,055 launches (up 32% year-on-year), while Delhi NCR recorded exceptional 64% year-on-year growth with 13,631 units. Together, these two cities accounted for 45% of total Q1 2026 launches. Developers have strategically pivoted toward premium offerings, with the INR 10 million+ segment seeing launches surge 45% year-on-year—driven primarily by a 134% surge in the INR 15-30 million segment and a 42% increase in INR 50 million+ projects. The premium segment's share rose from 45% in Q1 2025 to 64% in Q1 2026.

Housing prices across India's seven major cities sustained their upward momentum in Q1 2026, rising 8-20% year-over-year. Bengaluru, Chennai, Delhi NCR, and Kolkata topped price growth at more than 12% each, while Hyderabad recorded 8% appreciation. Property prices surged across key markets as developers prioritized premium projects amid rising construction costs and strong buyer demand. Rapid sales of well-located developments tightened inventory, accelerating price growth and enabling higher pricing on new launches. Developers are further accelerating this trend by launching new phases of existing projects at premium rates.

Future housing demand will be fueled by stabilizing economic conditions, continued urbanization, infrastructure improvements, premium home preferences, higher disposable incomes, and lower mortgage rates from recent rate cuts that will enhance affordability and expand the buyer pool. Supply growth will maintain momentum through robust developer confidence—as evidenced by the 13% year-on-year surge in launches—with quality developments in prime locations from established and major listed developers poised to expand market share through strong execution and brand strength. Consequently, residential property values are expected to continue rising due to strong demand, increasing input costs, and premiumization trends, though appreciation rates could moderate if sales growth continues at its current measured pace.