India’s housing market is showing signs of slower momentum as residential sales remain largely unchanged despite a steady flow of new projects. Developers continue to add supply, but inventory is taking longer to clear, creating an uneven picture across cities and price categories.
According to Knight Frank India figures cited in the report, 2,58,238 homes were sold across eight major cities between January and September 2026, almost unchanged from the corresponding period last year. New launches reached 2,79,899 units, recording a 4% annual increase.
While these figures indicate slower absorption, demand has not weakened uniformly. Several cities recorded modest growth, and higher-priced housing continued to attract buyers even as lower-priced segments experienced declining sales.
New launches exceed sales as inventory pressure grows
New housing launches remained above sales for the 16th consecutive quarter, highlighting a persistent gap between fresh supply and purchases. During the first nine months of 2026, launches exceeded sales by 21,661 units.
The quarters-to-sell measure increased from 5.8 in the third quarter of 2025 to 6.1 in the third quarter of 2026. This indicator estimates how long available inventory would take to clear at the prevailing sales pace.
It was the fourth consecutive quarterly increase and the highest reading since the second quarter of 2023. The trend suggests that available housing stock is being absorbed more slowly, although transactions continue.
Delhi-NCR declines while Mumbai and Bengaluru grow
Delhi-NCR recorded the sharpest slowdown among the major markets covered. Residential sales fell 11% to 35,574 units between January and September 2026. The report identified NCR as the only market among the eight tracked cities to register a decline.
Its premium housing segment faced particular pressure. Sales of properties priced between Rs 5 crore and Rs 10 crore dropped 39% to 4,033 units, while developers launched 5,002 homes in that category. Gurgaon accounted for 57% of NCR’s unsold residential inventory.
Other cities showed more resilience. Mumbai recorded 72,804 home sales, a 1% annual increase, while Bengaluru registered 43,140 transactions, up 5%. Kolkata’s sales increased 4%, and Hyderabad and Ahmedabad each recorded 2% growth. Pune remained broadly unchanged. These differences show that the national slowdown masks distinct local trends rather than a uniform decline in buyer demand.
Lower-priced homes lose ground as premium demand expands
Sales of homes priced below Rs 50 lakh fell 14% to 47,660 units during the first nine months of 2026. The Rs 50 lakh to Rs 1 crore category also weakened, recording a 5.9% decline.
Higher-priced categories moved in the opposite direction. Sales of homes costing between Rs 1 crore and Rs 2 crore increased 6.8% to 77,087 units. The Rs 2 crore to Rs 5 crore segment registered stronger growth of 19.4%.
Homes priced above Rs 1 crore consequently accounted for 55% of total residential sales, compared with 50% previously. The shift highlights the growing weight of costlier properties in overall transactions, even as NCR’s Rs 5 crore to Rs 10 crore segment struggled.
Property prices rise despite slower sales
Slower transaction growth has not translated into widespread price declines. Residential prices increased across all markets tracked by the report in the third quarter of 2026.
Most cities, excluding NCR and Bengaluru, recorded annual price growth of between 3% and 6%. Within NCR, prices rose 4% in Gurgaon, 7% in Noida, 11% in Greater Noida and 14% in Ghaziabad.
India’s housing market therefore presents a mixed picture: broadly flat sales, expanding supply, slower inventory clearance and continuing price increases. The report identifies festive-season demand and the RBI’s October policy as important factors to watch for the market’s next phase.
