Housing sales across India's top nine cities rose 19% in Q2 2026 as developers brought a wave of new supply back to market — though not every city shared in the recovery.
India's residential real estate market posted a strong performance in the second quarter of 2026, with housing sales across the top nine cities rising 19% year-on-year to 112,458 units, compared to 94,864 units in the same period last year. According to a report by PropEquity, the growth was supported by a sharp increase in new housing supply, which rose 43% year-on-year to 117,609 units, indicating that developers have stepped up launches after several quarters of restrained activity.
The report suggests that India's housing market has remained resilient despite geopolitical uncertainties in the Middle East and broader concerns around global economic volatility. On a quarter-on-quarter basis as well, market activity remained healthy, with housing sales rising 14% and new supply increasing 27% in Q2 2026. This indicates that both demand and developer confidence continue to remain strong across major urban markets.
Among the top-performing cities, Navi Mumbai recorded the highest growth in housing sales, with a 54% year-on-year increase. It was followed by Chennai, which saw sales rise 33%, Hyderabad at 25%, and Bengaluru at 20%. Other key markets also posted gains, with Pune registering a 16% rise, Mumbai recording 15% growth, and Thane reporting a modest 3% increase in sales during the quarter.
However, the performance was not uniform across all markets. While seven out of the top nine cities recorded an increase in housing sales, Delhi-NCR and Kolkata bucked the trend. Delhi-NCR witnessed a 17% decline in sales, while Kolkata saw a 12% drop, indicating softer buyer activity in these markets compared to the rest of the country.
According to Samir Jasuja, Founder and CEO of PropEquity, the Indian housing market has shown notable resilience even amid global and regional uncertainties. He noted that southern markets continue to lead growth, while Mumbai and Navi Mumbai have also witnessed strong buyer demand. Although some regions such as Thane and Delhi-NCR have seen relatively softer activity, the overall market outlook remains positive.
A key trend emerging in Q2 2026 has been the revival of new supply. After several quarters of constrained project launches, developers have started bringing more inventory to market, which has improved absorption across major cities. Jasuja said this rise in fresh supply, combined with healthy sales, demonstrates that end-user demand remains intact and that geopolitical tensions in West Asia have had minimal direct impact on India's residential property market.
On the supply side, Navi Mumbai led the growth chart with a remarkable 116% year-on-year increase in new housing supply, reaching 9,902 units. Mumbai followed closely with 111% growth, taking total supply to 10,438 units. Hyderabad saw supply rise 75% to 18,407 units, while Bengaluru recorded a 71% increase, with 24,340 units launched during the quarter. Markets such as Chennai, Pune and Thane also registered healthy growth in supply, ranging between 6% and 41%.
Hyderabad emerged as the second-largest housing supply market after Bengaluru, overtaking traditionally strong markets such as Pune, Thane and Delhi-NCR. This reflects the growing confidence of developers in Hyderabad's residential market and the city's ability to absorb new supply.
In contrast, Delhi-NCR saw a 6% decline in housing supply, with launches falling to 12,977 units, while Kolkata reported a 2% decline to 2,608 units. The slower pace of both sales and supply in these markets suggests a more cautious stance from both developers and buyers.
Jasuja also highlighted another emerging trend — growing investor interest in Indian real estate from individuals and institutions that had previously been evaluating opportunities in the Middle East. India's economic stability, infrastructure growth and strong long-term real estate fundamentals are increasingly making it a preferred destination for real estate investment.
Overall, the Q2 2026 performance underlines the continued strength of India's housing market. With sales and supply both rising sharply, the sector appears to be entering a more balanced phase of growth, supported by healthy buyer sentiment, improved project launches and strong confidence in the country's long-term real estate story.
