Housing sales fall 6%, launches rise as builders pivot to premium projects

Of the top cities, only Kolkata, Hyderabad & Bengaluru saw 10%, 2% & 1% yearly sales rise respectively in Q2 2026

Housing sales across India's top seven cities declined 6 per cent year-on-year to about 90,715 units in the April-June quarter of 2026, the lowest since January 2023 amid uncertainty stemming from the West Asia conflict and concerns over global economic growth. However, developers remained optimistic, launching 1.06 lakh housing units during the quarter, a 7 per cent increase over the same period last year, shows data analysed by property consulting firm Anarock. 

 

NCR saw sales decline 6% Y-o-Y – from approx. 14,255 units in Q2 2025 to approx. 13,365 units in Q2 2026. Quarterly, it saw a 12% decline in sales.

 

 

MMR witnessed the highest sales of approx. 28,710 units in Q2 2026, against 31,275 in Q2 2025 – declining by 8% annually and 12% quarterly.

 

Pune saw approx. 13,090 units sold in Q2 2026, down by 15% over Q2 2025.

 

Bengaluru saw housing sales by meagre 1% in Q2 2026 against Q2 2025, with approx. 15,285 units sold in the quarter. Quarterly, it saw a 7% decline in sales.

 

Chennai saw approx. 5,135 units sold in Q2 2026 – decreasing by 9% against Q2 2025. Quarterly, it saw a 3% decline in sales.

 

Hyderabad saw 11,270 units sold in the quarter, rising by 2% over Q2 2025. Quarterly, sales declined by 9%.

 

Kolkata saw housing sales increase by 10% in the quarter against Q2 2025, with approx. 3,860 units sold in Q2 2026. Quarterly, the city saw sales decline by 8%.

 

 “These readings are along expected lines, as the Middle East war’s impacts on the entire sector were all too obvious. Reasons aside, what we have currently is a more balanced housing market where new supply is catching up with absorption as sales growth moderated across most top cities. Notable, the most sales growth now is in premium housing, GCC-led employment hubs, and infrastructure- driven corridors. Also, the Middle East war’s disruptions and, inevitably, AI-related uncertainties in the IT/ITeS sector have pushed more buyers onto the fence," said Anuj Puri, Chairman - ANAROCK Group.

 

The biggest shift was in the composition of new supply.

 

Homes priced between ₹80 lakh and ₹1.5 crore accounted for the largest share of launches at 27 per cent, followed by the ₹1.5-2.5 crore segment (25 per cent) and homes priced above ₹2.5 crore (22 per cent).

 

By contrast, affordable housing priced below ₹40 lakh accounted for just 6 per cent of all new launches, highlighting the continued move away from the budget segment.

 

Premium demand remains intact

 

Puri added that listed and large developers continued to launch projects on large land parcels acquired during 2025, although quarterly launches moderated as developers responded to weaker buyer sentiment.

 

MMR, Bengaluru dominate market

 

Mumbai Metropolitan Region (MMR) and Bengaluru continued to dominate both housing demand and new launches.

 

Together, the two cities accounted for 48 per cent of all homes sold during the quarter, with 28,710 units sold in MMR and 15,285 units in Bengaluru.

 

They also contributed 53 per cent of all new launches, adding 34,555 units and 21,670 units, respectively.

 

Among the seven cities, Kolkata (10 per cent), Hyderabad (2 per cent) and Bengaluru (1 per cent) were the only markets to register annual growth in housing sales.

 

Pune recorded the steepest decline, with sales falling 15 per cent year-on-year.

 

Hyderabad leads supply growth

 

While overall launches rose, growth was concentrated in a few markets.

 

Hyderabad recorded the highest annual increase in new launches at 53 per cent, followed by Kolkata (42 per cent), Bengaluru (41 per cent) and MMR (23 per cent).

 

On the other hand, new launches declined sharply in NCR (40 per cent) and Chennai (38 per cent).

 

Developers also continued to focus on premium projects across cities.

 

In Bengaluru, 96 per cent of all new launches were priced above ₹80 lakh.

 

In Hyderabad, more than 82 per cent of launches were in the ₹80 lakh-₹2.5 crore price bracket, while 61 per cent of new supply in NCR was in the luxury segment priced above ₹1.5 crore.

 

Prices continue to rise

 

Despite slower sales, housing prices continued their upward trajectory.

 

Average residential prices across the top seven cities increased 7 per cent year-on-year, although quarterly growth slowed to just 1 per cent, suggesting price appreciation is moderating.

 

NCR posted the highest annual price growth at 13 per cent, followed by Bengaluru with 8 per cent.

 

Inventory rises

 

Unsold housing inventory also continued to build up.

 

Available inventory across the top seven cities rose 10 per cent annually to more than 6.16 lakh units by the end of June 2026.

 

Bengaluru recorded the biggest increase, with inventory rising 34 per cent year-on-year to around 79,180 units, while NCR was the only major market where inventory remained broadly unchanged.