India’s residential real estate market kicked off 2026 on a strong note, but with a clear shift in buyer behaviour. According to JLL’s latest report, housing launches surged 13% year-on-year to a record 90,023 units in Q1 2026, while sales grew at a slower pace of 8% to 70,631 units, indicating a more cautious approach from homebuyers amid economic uncertainty.
This gap between supply and demand suggests that developers are confident about long-term growth, but buyers are taking more time to make decisions.
Supply Surge Outpaces Sales Growth
The significant rise in new project launches—up 32% quarter-on-quarter—has given buyers more choices, especially from reputed developers. However, the relatively slower sales growth shows that many buyers are evaluating options more carefully before committing.
JLL highlighted that around 26% of quarterly sales came from newly launched projects, showing that fresh supply continues to attract demand despite cautious sentiment.
Premium Housing Drives the Market
A major trend in Q1 2026 is the sharp shift towards premium housing. Homes priced above ₹1 crore dominated the market:
- 71% of total sales came from the ₹1 crore+ segment (up from 59% last year)
- Premium housing saw 30% year-on-year growth
- The ₹1.5–3 crore segment alone surged by 67% YoY
On the other hand, affordable housing (below ₹1 crore) saw a 24% decline, reflecting rising costs and a developer shift towards higher-margin projects.
Top Cities Continue to Lead
Four major cities—Bengaluru, Mumbai, Pune, and Delhi NCR—accounted for nearly 77% of total housing sales in Q1 2026.
- Bengaluru led with 18,043 units sold (18% growth)
- Delhi NCR saw strong 30% growth
- Chennai recorded the highest growth at 61%
- Mumbai remained stable with a slight dip of 2%
- Pune saw a 14% decline in sales
On the supply side, Bengaluru and Delhi NCR dominated new launches, together contributing nearly 45% of total launches.
Prices Continue to Rise
Residential property prices across India’s top cities rose between 8% and 20% year-on-year, driven by:
- Increasing land and construction costs
- Strong demand for premium homes
- Limited affordable housing supply in core urban areas
What JLL Says
Siva Krishnan, Senior Managing Director and Head of Residential Services at JLL India, said:
“The residential market is in a transitional phase where strong supply meets cautious buyer sentiment. The divergence between launches and sales is a healthy adjustment, not a concern. Premium housing demand remains strong, especially among affluent buyers.”
What It Means for Homebuyers
The current market presents a unique opportunity for buyers:
- More inventory means better choices and negotiation power
- Premium housing is becoming the new focus of developers
- Prices are likely to continue rising, though at a moderated pace
While short-term caution is visible, the long-term outlook remains positive, backed by urbanisation, infrastructure growth, and rising incomes.
Also Read: Luxury Real Estate set to Rebound in 2023
