India's Housing Market Q2 2026

India sold 91,729 homes in Q2 2026, outpacing new launches as buyers stayed active despite rising prices, tech-sector uncertainty, and affordability concerns. Yet data from different analytics firms tells conflicting stories—India housing sales fell 6.1% to 91,729 units in Q2 2026 according to one measure, while housing sales across the country's top nine cities rose 19% year-on-year to 1,12,458 units according to another. The variance reflects methodology differences, but both agree on a fundamental shift: the market is maturing.

Homes above ₹1 crore are at 71% of total sales, up from 59% a year earlier, marking an unmistakable pivot toward premium real estate. The average sales-weighted residential price rose to ₹10,153 per square foot, marking the second consecutive quarter in which prices remained above the ₹10,000 threshold. This price floor signals sustained buyer confidence even as overall volumes moderate.

City-level performance diverged sharply. Bengaluru remained the country's largest housing market, with recorded sales of 21,516 units and an annual increase of 47 per cent. Hyderabad followed second with sales of 14,410 units and a growth rate of 47 per cent. Navi Mumbai emerged as the fastest-growing market among the top cities, with housing sales surged by 61 per cent on an annual basis, marked by sales of 11,029 units. In contrast, Pune saw approx. 13,090 units sold in Q2 2026, down by 15% over Q2 2025.

On the supply side, new project launches rose by 6%, raising concerns about potential inventory buildup and price sustainability. The narrowing gap between sales and new launches is notable. In Q2 2025, sales exceeded new supply by more than 13,500 units. In Q2 2026, the difference narrowed to just 2,568 units, suggesting that developers continued to bring substantial inventory to the market even as buyer demand softened.

Buyer sentiment shifted as potential homeowners grew increasingly cautious due to global geopolitical tensions and uncertainty surrounding AI-driven shifts in the tech job market. Yet while macroeconomic factors have introduced caution among buyers in the mid-income and affordable housing segments, the premium and luxury categories have shown resilience. This 'flight-to-quality' trend means that developers with a strong pipeline of high-end projects in prime locations often report different outcomes compared to those dependent on entry-level or mid-segment demand.

For homebuyers, the Q2 2026 data reveals a market sorting by quality and location. Q2 2026 confirms India's residential market is maturing, not weakening. Prices have held above ₹10,000 per square foot for two straight quarters even as buyers turn more selective. Kolkata and Chennai are showing genuine demand-led recovery, while Bengaluru and Pune continue to command pricing power despite tech-sector caution. Affordability pressures remain real—the affordable and mid-income segments are losing market share as developer launches shift upward toward premium price points and price appreciation has moved product out of the reach of first-time buyers. For buyers, this translates to fewer options at entry-level prices but stronger value retention in premium markets and well-connected localities.