India’s residential property market has entered a phase of moderation, with housing sales across the top nine cities dropping below the 100,000 unit-mark for the first time in over four years.
The decline, driven largely by reduced new launches, signals a shift from the strong post-pandemic momentum that had supported demand.
According to data from PropEquity, housing sales fell 13 per cent year-on-year (Y-o-Y) and 6 per cent quarter-on-quarter (Q-o-Q) to 98,761 units in January–March 2026. New supply declined even more sharply, falling 19 per cent annually and 8 per cent sequentially to 92,411 units.
Supply constraints drag sales lower
According to PropEquity, the primary driver of the slowdown is a sharp contraction in new project launches across most major cities. Nearly 22,000 fewer units were introduced compared to the same quarter last year, limiting choices for buyers and slowing transaction volumes.
This supply-side tightening comes after a period of aggressive launches in 2023–24, suggesting developers may now be recalibrating amid rising costs, high interest rates, and concerns over demand sustainability.
Lower supply typically leads to:
· Reduced inventory in affordable and mid-segment housing
· Higher bargaining power for developers
· Limited discounts or incentives for buyers
For prospective homebuyers, this means fewer options and potentially firmer property prices, even as overall sales decline.
Bengaluru emerges top market
Bengaluru has emerged the standout performer in the current cycle, recording the highest sales and supply among the top cities for the first time.
· Sales rose 3 per cent Y-o-Y and 16 per cent Q-o-Q to 17,991 units
· New launches stood at 17,782 units
The city’s resilience is largely supported by strong end-user demand, particularly from the technology sector, and relatively balanced pricing compared to other metros.
Delhi-NCR sees growth, but with a caveat
Delhi-NCR was the only other major region to register growth in sales, rising 13 per cent Y-o-Y to 12,141 units. Supply surged sharply, increasing 89 per cent annually to 17,227 units.
However, this growth comes with a structural concern: A significant portion of new launches falls in the premium and luxury categories. Higher ticket sizes have tempered overall absorption, making it harder for a broader base of buyers to participate.
For households, this highlights a widening affordability gap:
· Entry-level and mid-income buyers face limited options
· High-value launches increase overall market skew towards luxury
Most cities witness decline
Outside Bengaluru and Delhi-NCR, all other major housing markets recorded a drop in sales:
· Mumbai down 20 per cent Y-o-Y
· Pune down 25 per cent
· Thane down 24 per cent
· Hyderabad down 16 per cent
The declines reflect both reduced supply and demand fatigue after multiple quarters of strong sales.
What this means for homebuyers
The current market presents a mixed picture for buyers:
1. Limited inventory may push prices up
With fewer new launches, especially in affordable segments, buyers may find it difficult to negotiate prices.
2. Interest rates remain a key variable
Even as supply tightens, borrowing costs continue to influence affordability. Any easing in rates could revive demand.
3. Premiumisation trend continues
Developers are increasingly focusing on higher-value projects, which may not align with the budgets of most first-time buyers.
4. City-level divergence matters
Markets like Bengaluru may offer better liquidity and resale potential, while others could see slower price appreciation.
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