India’s Residential Sales Hold Steady In 9M CY2026 As Market Divergence Widens, Says Report

The Indian residential real estate market has remained resilient in the first nine months of calendar year 2026 (9M CY2026), with sales broadly unchanged despite the growing divergence across cities and various price segments. Residential sales across the eight major markets stood at 258,238 units between January and September 2026, while developers launched 279,899 units, up 4 per cent year-on-year (y-o-y), according to data released by Knight Frank. Launches continued to outpace sales for the 16th consecutive quarter, indicating a gradual build-up in inventory, it said.

Mumbai Leads Sales While NCR Sees A Decline

The top eight cities included in the data collection drive were Delhi-National Capital Region (Delhi-NCR), Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad.

Of all the cities, Mumbai remained India’s largest residential market, with sales at 72,804, up by 1 per cent on a y-o-y basis. Bengaluru followed with 43,140 units, up 5 per cent annually, while Pune recorded 36,402 units, largely unchanged from last year. These were followed by Kolkata, Chennai, Hyderabad and Ahmedabad, which saw sales growth of 2-4 per cent. Delhi-NCR, however, saw a decline, with sales falling by 11 per cent annually to 35,574 units. The sales were concentrated in the Rs 5 crore-10 crore segments, where sales fell by 39 per cent to 4,033 units. Gurugram recorded the largest share of unsold inventory in Delhi-NCR at 57 per cent.

Shishir Baijal, chairman and managing director, Knight Frank India, said: “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 plateaued after several years of strong growth, and combined sales in the seven markets outside Delhi-NCR rose 2 per cent y-o-y. NCR's 11 per cent moderation has been led by the Rs 5 crore - 10 crore segment, while the Rs 2 crore - 5 crore segment continues to grow across most major markets, including Delhi-NCR included.”

He added: “The shift towards higher ticket sizes and a gradual rise in quarters to sell show that buyers are becoming more selective, pointing to normalisation rather than a broad-based slowdown. As the benefit of lower interest rates moderates, income growth, relevant new supply, and local demand drivers will shape the next phase of growth across India's leading cities.”

Premium Housing Gains Market Share

The report further highlighted the shift towards higher-ticket housing. Homes priced above the Rs 1 crore segment accounted for 55 per cent of the total residential sales, up from 50 per cent in 9M CY2025. The sales of homes below the Rs 1 crore mark also declined by around 10 per cent on a yearly basis. The largest category was the Rs 1 crore - 2 crore segment, which accounted for 77,087 units or 30 per cent of the total sales, which is an increase of 6.80 per cent. The Rs 2 crore - 5 crore segment recorded an even stronger momentum, with sales reaching 19.40 per cent.

In contrast, the sales of homes below the Rs 50 lakh mark fell by 14 per cent on an annual basis to 47,660 units, while the Rs 50 lakh - 1 crore segment declined by 5.90 per cent. With inflation limiting the scope of further financial and monetary easing, income growth, relevant new supply and local demand drivers are most likely to determine the next phase of Indian housing markets, Knight Frank said.