Residential sales across India’s top eight cities remained flat in the first nine months of calendar year 2026 (9M CY26), with sales across eight key markets at 258,238 units, broadly unchanged from the corresponding period a year earlier, according to property consultancy Knight Frank India.
The stability in overall sales, however, masked increasing divergence across markets and price segments.
The National Capital Region (NCR) was the only major market to register a decline, with sales falling 11 per cent year-on-year (YoY) to 35,574 units. In contrast, sales in the other seven markets ranged from broadly unchanged in Pune to a 5 per cent increase in Bengaluru.
Mumbai remained the largest residential market by volume, recording sales of 72,804 units, up 1 per cent YoY.
Bengaluru followed with 43,140 units, an increase of 5 per cent, while Pune recorded 36,402 units, broadly unchanged from a year earlier.
Hyderabad, Ahmedabad, Chennai and Kolkata recorded sales growth of 2-4 per cent.
Supply continued to exceed sales, with 279,899 units launched during 9M CY26, up 4 per cent YoY.
In the July-September quarter (Q3 2026), sales declined marginally, by 1 per cent YoY, to 86,767 units.
Launches in the same period stood at 92,549 units, also 4 per cent higher YoY.
Launches have exceeded sales for the 16th consecutive quarter, according to Knight Frank.
The consultancy said the divergence was particularly visible in NCR, where the slowdown was concentrated in the ₹5-10 crore price segment in 9M 2026.
Sales in this category declined 39 per cent YoY to 4,033 units, compared with 5,002 units launched during the period.
Gurugram accounted for the bulk of the correction and represented 57 per cent of NCR’s unsold inventory.
“India’s residential market is entering a more discerning phase, in which the quality and relevance of supply will matter as much as the strength of demand. Sales held steady in the first nine months of 2026 as the market plateaus after several years of strong growth, and combined sales in the seven markets outside NCR rose 2 per cent YoY,” said Shishir Baijal, international partner, chairman and managing director, Knight Frank India.
Baijal said NCR’s 11 per cent moderation had been led by the ₹5-10 crore segment, while the ₹2-5 crore segment continued to grow across most major markets, including NCR.
The shift towards higher ticket sizes and a gradual rise in quarters to sell (QTS), he said, pointed to normalisation rather than a broad-based slowdown.
The shift towards higher-ticket housing continued during the period.
Homes priced above ₹1 crore accounted for 55 per cent of total sales in 9M CY26, compared with 50 per cent a year earlier.
The share of homes priced below ₹50 lakh declined to 18 per cent from 22 per cent.
The ₹1-2 crore segment was the largest category, accounting for 30 per cent of sales and growing 6.8 per cent YoY to 77,087 units.
Sales in the ₹2-5 crore segment rose 19.4 per cent to 51,501 units, the strongest growth among the major price categories.
Meanwhile, sales below ₹50 lakh fell 14 per cent to 47,660 units.
Inventory absorption also showed signs of moderation.
QTS rose to 6.1 quarters in the third quarter of 2026 from 5.8 quarters a year earlier, marking the fourth consecutive quarterly increase and the highest level since Q2 CY23.
Knight Frank said the metric remained below the 7-11 quarters recorded between 2018 and 2021.
Residential prices increased across all tracked markets in Q3 CY26.
Outside NCR and Bengaluru, annual price growth ranged between 3 per cent and 6 per cent.
Bengaluru recorded 11 per cent YoY growth, which Knight Frank said may partly reflect the rapid addition of higher-priced stock to its inventory-weighted average.
Knight Frank noted that the broader macroeconomic backdrop remained supportive, although monetary policy was no longer providing additional momentum.
GDP grew 7.8 per cent YoY in April-June 2026, above the Reserve Bank of India’s 7 per cent projection, while the central bank raised its FY27 growth forecast to 6.7 per cent in August and kept the repo rate unchanged at 5.25 per cent.
Knight Frank said the residential market was “plateauing”, with overall sales stable but divergence across markets and price segments becoming more visible.
It identified subdued sales in NCR’s ₹5-10 crore segment, premium inventory building in Bengaluru and Pune, slowing absorption at the lower end, and inflation concerns limiting the scope for further monetary support as key areas to watch.
