India’s housing market during the first quarter of 2026 started on a weak note, with sales dropping below the 1 lakh mark for the first time in four-and-a-half years. The fall came as new project launches slowed across most major cities, dragging overall absorption lower, as per a recent report by PropEquity.
Sales across the top nine cities stood at 98,761 units in Q1 2026, down 13% year-on-year and 6% from the previous quarter. New supply also slipped to 92,411 units, marking a 19% annual decline, the report adds.
What stands out is the uneven nature of this slowdown. Bengaluru and Delhi-NCR continued to attract demand and fresh supply, while most other cities saw both metrics weaken at the same time, as per the report.
Bengaluru emerges as the strongest market in a weak quarter
Bengaluru became the top-performing city in Q1 2026, reporting the highest sales among the nine major markets. The city recorded 17,991 units in sales, rising 3% year-on-year and 16% quarter-on-quarter. On the supply side, launches stood at 17,782 units, up 10% sequentially, though lower by 24% compared to last year, according to the firm.
India Housing Market — Q1 2026 Snapshot
“Close to 22,000 fewer units were supplied in Q1 2026 vs. same period last year.” — Samir Jasuja, Founder & CEO, PropEquity
This made Bengaluru the only major market to post growth in both demand and fresh supply on a sequential basis.
“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,” said Samir Jasuja, Founder & CEO, PropEquity.
Delhi-NCR records highest growth in supply, demand shows mixed trend
Delhi-NCR stood out for its sharp rise in new launches, even as sales showed limited movement. The region recorded 12,141 units in sales, up 13% year-on-year but down 1% from the previous quarter. Supply rose to 17,227 units, marking an 89% annual increase and an 8% sequential rise, as per Propequity.
This made Delhi-NCR the only city among the top nine to report strong growth in supply.
“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,” Jasuja added.
Mumbai, Pune, Thane among the biggest drags on overall sales
Western markets recorded the steepest declines, weighing heavily on overall housing numbers. Mumbai reported 9,186 units in sales, down 20% year-on-year and 13% quarter-on-quarter. Supply in the city also fell 17% annually. Pune saw sales decline to 16,144 units, falling 25% from last year and 8% sequentially. Supply dropped 31% year-on-year, based on the report.
Thane recorded 15,959 units in sales, down 24% year-on-year and 17% quarter-on-quarter, with supply falling 20% annually.
All three markets saw both demand and supply contract at the same time.
“Housing sales continued to moderate in the first quarter of 2026 with Delhi-NCR and Bengaluru emerging as outliers,” Jasuja said, referring to the divergence across cities.
Other cities also report decline in both sales and launches
Outside the top two performers, the rest of the cities reported a decline in sales.
Hyderabad recorded 11,546 units in sales, down 16% year-on-year and 5% sequentially. Supply dropped 38% annually. Chennai saw sales at 4,765 units, declining 4% year-on-year and 2% quarter-on-quarter. Supply fell sharply by 62% compared to last year, as per the data in the report.
Kolkata recorded 3,872 units in sales, down 8% year-on-year and 10% sequentially, while supply declined 17% annually.
Navi Mumbai also reported a drop, with sales falling 14% year-on-year and 19% sequentially to 7,157 units. Supply declined 24% annually.
“This reduction is on account of low supply across most cities,” Jasuja said.
Supply contraction remains the key pressure point
Across the board, the fall in new launches remained the central factor behind lower sales.
Total supply dropped to 92,411 units in Q1 2026, down 19% year-on-year and 8% quarter-on-quarter, as per Propequity data.
Except for Delhi-NCR, every major city reported either flat or declining supply compared to last year.
“Close to 22,000 lesser units were supplied in Q1 2026 as compared to the same period last year,” Jasuja said.
Conclusion
Q1 2026 marks a clear slowdown in India’s housing market after a long period of steady activity. The drop in supply has started to weigh on sales across most cities.
Bengaluru and Delhi-NCR remain exceptions for now, but the broader trend shows demand easing alongside fewer launches. If supply does not pick up, sales are likely to remain under pressure in the coming quarters.