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India’s residential property market recorded 91,729 housing sales and 89,161 new launches across its eight largest cities in Q2 2026, according to PropTiger.com’s Real Insight Residential report released by Aurum PropTech. Sales declined 4.4% quarter-on-quarter, while launches fell 4.2%, although annual launches increased 6.0%. Sales remained 2,568 units ahead of new supply, limiting the accumulation of unsold inventory. The sales-weighted average residential price rose 1.0% sequentially to INR 10,153 per sq ft, remaining above INR 10,000 per sq ft for a second consecutive quarter. MMR retained the largest market share by volume and value, while Bengaluru recorded the highest annual price appreciation at 26.0%. Kolkata reported the strongest sequential sales recovery, supported by a post-election improvement in demand.
India’s top eight residential markets recorded 91,729 housing sales and 89,161 new launches in Q2 2026, according to PropTiger.com’s Real Insight Residential report released on Wednesday, with sales continuing to exceed fresh supply despite sequential moderation. The report attributed the quarterly slowdown to pre-monsoon seasonality and buyer caution linked to the US–Iran conflict, particularly in technology-led markets including Bengaluru, Pune and Hyderabad.
Sales declined 4.4% from 95,973 units in Q1 2026, while new launches fell 4.2% from 93,065 units. However, launches were 6.0% higher than the 84,138 units recorded in Q2 2025. Sales, meanwhile, were 6.1% lower than the year-ago figure of 97,674 units, which represented an elevated base.
The demand-supply balance remained relatively stable during the quarter, with sales exceeding new launches by 2,568 units. According to the report, this prevented any meaningful build-up of unsold inventory. Sentiment in the sub-INR 1 crore segment was affected in technology-focused markets, where AI-led workforce restructuring and technology-sector layoffs added to buyer caution.
MMR remained the largest market, recording 24,112 sales at a sales-weighted average price of INR 15,422 per sq ft, up 20.4% year-on-year. Bengaluru registered the strongest annual price appreciation among the eight markets, with prices rising 26.0% to INR 9,931 per sq ft despite a 9.2% annual decline in sales. Pune crossed INR 8,000 per sq ft for the first time, reaching INR 8,084 per sq ft, an annual increase of 13.7%.
Ahmedabad remained the most affordable market at INR 5,295 per sq ft and recorded the strongest sequential price increase of 7.0%. Kolkata posted the highest quarter-on-quarter sales growth, rising 22.0% to 3,517 units, which the report linked to a post-election recovery. Chennai sales increased 36.0% annually to 7,183 units, despite launches being 43.3% below the year-ago level. Hyderabad recorded 13,196 sales, down marginally by 0.8% sequentially, while launches increased 21.6% annually to 13,074 units, supported by its IT, pharmaceutical and data-centre ecosystem.
The report said a stable RBI repo rate of 5.25%, moderating inflation and continued government capital expenditure provided a predictable macroeconomic backdrop. GST reductions on cement, from 28% to 18%, and marble and granite, from 12% to 5%, were absorbed into project economics and provided an estimated 2–3% construction cost buffer. However, the report described this as a partial cost offset rather than a reason for lower residential prices, noting that prices increased annually across all eight cities.
For Q3 2026, PropTiger.com expects festive-season demand, further recovery in Kolkata and supply normalisation in Chennai, alongside continued momentum in Bengaluru and Delhi-NCR. Infrastructure completions, including Bengaluru Metro Phase 3, the Pune Line 3 extension and Chennai Phase 2, are also expected to support market activity. The report identified affordability as the principal watchpoint, with annual price appreciation ranging from 4.4% in Chennai to 26.0% in Bengaluru.
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