The Indian residential real estate market has been showing early signs of slowdown in the first quarter of 2026. Housing sales declined by 4 per cent on a year-on-year basis to 84,827 units across the top eight cities. This downward trend could be noticed from January 2026, when the housing sales fell below 1 lakh units for the very first time in the last 18 quarters for the month. This dip reflects a broader consolidation trend after a strong performance in 2025. The price rise was seen while the buyer sentiment began to turn cautious. While the decline seems to be modest, the underlying trends point to a shifting market dynamic. One where supply continues to outpace the demand, affordability pressures intensify and the growth is driven by premium housing demands.
Demand Across Key Cities
Upon breaking down city-wise decrease, the slowdown was led by some of the largest markets, such as the Mumbai Metropolitan Region (MMR). Mumbai is India’s biggest residential market, which recorded a 7 per cent year-on-year decline in sales, with only 23,185 units being sold in the Q1 of 2026. The National Capital Region (NCR) and Pune have witnessed a sharper decline in the matter, both of them decreasing by 11 per cent. NCR recorded 12,734 units being sold, while Pune witnessed sales of 12,711 units during this quarter.
On the other hand, southern markets have shown resilience. Bengaluru has registered a 5 per cent increase in sales, while recording total sales of 13,092 units. Whereas Chennai saw a 9 per cent growth, at the same time Hyderabad remained stable with its 1 per cent growth. In smaller markets like Ahmedabad and Kolkata, moderate gains of 2 per cent and 5 per cent, respectively. This indicates that the market has not slowed down geographically.