Home / Business and Economy / Q1 Housing Sees 2% Drop; Bengaluru Emerges Star
Q1 Housing Sees 2% Drop; Bengaluru Emerges Star
16 May
Summary
- Housing sales across eight major cities dropped 2% to 95,973 units.
- Bengaluru sales surged 33% to 15,603 units, leading market growth.
- New supply remained flat, indicating a disciplined and demand-driven market.
Housing sales across eight major Indian cities saw a 2% decrease in the first quarter of 2026, with nearly 96,000 units sold. This downturn reflects a slowdown in demand and a reduced availability of lower-cost homes. The real estate market is transitioning into a more disciplined phase, prioritizing demand quality and buyer confidence over speculative expansion.
Bengaluru defied the national trend, recording a significant 33% year-on-year increase in sales, reaching 15,603 units. This growth is attributed to its strong GCC and startup employment ecosystem, which provides a resilient demand base. Other cities like Chennai and Hyderabad also experienced sales growth, while major markets such as MMR, Pune, Kolkata, and Ahmedabad saw declines.
New housing supply remained nearly flat year-on-year, with additions closely matching sales absorption. This indicates a balanced market with no significant build-up of unsold inventory. All eight monitored cities demonstrated positive year-on-year price appreciation, suggesting underlying market strength despite the overall sales dip.
