India’s housing market cools as sales drop in Q1 2026 amid supply crunch

The housing sales in India’s top 9 cities continued to decline in Q1 (January-March) 2026, falling below the 1 lakh unit mark after 18 quarters, owing to fewer supply across most major cities.

According to NSE-listed real estate data analytics company PropEquity, housing sales fell by 13% YoY and 6% QoQ to 98,761 units while launches fell by 19% YoY and 8% QoQ to 92,411 units in January-March 2026.

Bengaluru, with sales of 17,991 units, emerged as the highest selling market. The city recorded 16% QoQ and 3% YoY growth. Delhi-NCR with 12,141 units recorded 13% YoY growth. However, on QoQ basis, sales fell by 1%. All other cities saw a decline in sales.


“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.

On the supply front, Delhi-NCR with 17,227 units launched in Q1, has emerged as the second biggest market. Amongst the top 9 cities, Delhi-NCR remains the only city to record 89% YoY and 8% QoQ growth.

Bengaluru with 17782 units launched regained the top spot recording 10% QoQ growth and 24% YoY decline. Chennai, meanwhile, with 2909 units saw 12% QoQ growth and 62% YoY decline in supply. All other cities saw a decline in new launches.

“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 said.