Housing sales across India’s top seven cities rebounded in the third quarter of 2026, crossing the one-lakh mark as end-user buyers returned after holding back in the previous quarter. According to Anarock’s Residential Market Viewpoints for Q3 2026, sales rose 3% year-on-year and 10% quarter-on-quarter to approximately 1,00,200 units, valued at about ₹1.55 lakh crore. Every one of the seven cities recorded sequential growth, signalling that the earlier moderation was cyclical rather than structural.
Sales Rebound Across All Seven Cities
The Top 7 cities (NCR, Mumbai Metropolitan Region or MMR, Bengaluru, Pune, Hyderabad, Chennai and Kolkata) registered sales of roughly 1,00,200 units in Q3 2026, up from 90,700 units in Q2 2026 and 97,100 units in Q3 2025. Sales value climbed 13% quarter-on-quarter and 2% year-on-year.
MMR remained the largest market with 31,750 units sold (32% share), followed by Bengaluru at 16,650 units (16%) and Pune at 15,700 units (16%). Hyderabad posted the strongest annual sales growth at 15%, rising to 12,950 units. Bengaluru and MMR were the only other cities to register year-on-year gains of 12% and 5% respectively. Chennai saw the steepest annual decline at 10%.
The recovery was driven by end-use buyers completing purchases deferred earlier in the year, supported by stable borrowing costs and a wider choice of products. Demand remained led by occupiers rather than investors, even as geopolitical uncertainty and rising prices persisted.
Developers Widen Supply Mix, Affordable Segment Surges
New residential launches rose 18% year-on-year to approximately 1,14,300 units, an 8% increase from the 1,06,000 units launched in Q2 2026. Developers released pipelines they had held back in the previous quarter, with large and listed players also bringing projects on land acquired in 2024 and 2025.
The supply mix broadened sharply downward. Homes priced above ₹2.5 crore eased to 14% of new launches from 22% in Q2 2026. In contrast, the affordable segment (below ₹40 lakh) more than doubled its share to 14% of total supply—the highest since Q4 2025. Combined affordable and lower-mid segments (below ₹80 lakh) rose to 31% of launches from 25% in the previous quarter.
Upper-mid segment (₹80 lakh–₹1.5 crore) held the single largest share at about 31%, followed by high-end (₹1.5–₹2.5 crore) at 24%. Homes above ₹1.5 crore still accounted for roughly 38% of launches overall. Among cities, Hyderabad recorded the highest concentration of premium supply (66% above ₹1.5 crore), while Kolkata had the lowest (only 4% above ₹1.5 crore) and the highest affordable-plus-lower-mid share at 57%.
MMR led launches with 37,500 units (33% of total), followed by Hyderabad (18,950 units) and Pune (18,750 units). Pune recorded a sharp 48% quarter-on-quarter jump in launches. Year-on-year, Hyderabad more than doubled its launches.
Inventory Builds Despite Stronger Absorption
Available inventory closed the quarter at approximately 6,30,600 units—up 2% quarter-on-quarter and 12% year-on-year from 5,61,750 units at the end of Q3 2025. New launches continued to run ahead of sales, though the gap narrowed to roughly 14,100 units from 15,300 units in Q2 2026. Inventory overhang held steady at about 19 months, well below the more than 25 months seen in early 2022.
Hyderabad carried the heaviest overhang at 28 months, reflecting sustained launch activity outpacing absorption. Bengaluru had the lowest at 15 months. MMR held 1,98,050 units (31% of total inventory), Hyderabad 1,14,700 units, and Pune overtook NCR to become the third-largest stock at 86,900 units. NCR was one of the few markets where inventory declined both quarterly and annually.
Prices Firm Up, Affordability Remains Key Constraint
Average residential prices across the Top 7 cities rose 7% year-on-year and 1% quarter-on-quarter to ₹9,714 per sq ft (basic selling price on super built-up area). NCR led price appreciation with a 12% annual increase, driven by luxury and ultra-luxury supply, followed by Bengaluru at 8% and Kolkata at 7%. MMR, Pune, Hyderabad and Chennai saw more moderate gains of 4–6%.
While prices held firm, supported by steady end-user demand and developers’ ability to sustain pricing across a broader product range, affordability remains the binding constraint. Higher prices are keeping buyers selective on product, location and developer.
City-Wise Performance and Outlook
MMR continued to dominate both launches (33%) and sales (32%). Hyderabad stood out for the strongest annual sales growth and a sharp rise in launches, but also for the highest inventory overhang. Pune’s 48% quarterly launch surge and 20% sequential sales jump highlighted its momentum. All seven cities recorded sequential sales growth, pointing to a broad-based recovery.
Anarock notes that the medium-term outlook has improved. Festive sentiment, stable borrowing costs and a healthy launch pipeline should carry momentum into the closing quarter of 2026. However, developers are advised to match launch pace to realised sales velocity rather than last quarter’s momentum, especially in markets with heavy overhang such as Hyderabad. For buyers, the quarter brought wider choice at the lower end, though rising prices continue to test affordability.
Long-term fundamentals—rising urbanisation, favourable demographics, increasing household incomes, infrastructure-led development and strong aspiration for homeownership—remain intact. While global events may influence short-term sentiment, the Indian residential real estate story is seen as remaining firmly in place.
Also Read: Housing Sales Rise 3% in Q3 2026 as New Launches Jump 18%
