Mumbai Powers Housing Sales While Delhi-NCR Loses Momentum in H1 2026, Says Report

The Indian residential market remained resilient in the first half of 2026, with housing sales across the top-eight cities rising by a marginal 1 per cent on a year-on-year (y-o-y) basis. This increase was marked by a total sale of 171,471 units. However, the performance across the eight cities was varied. While Mumbai earned its place as the country’s largest housing market, the Delhi-National Capital Region (Delhi-NCR) emerged as the weakest performer, highlighting a growing divergence in residential demands, according to the H1 2026 report by Knight Frank India.

How Did Mumbai Perform Better?

Mumbai recorded housing sales of 47,355 units during January-June 2026, which accounted for nearly 28 per cent of all homes sold in the top-eight cities: Mumbai, Delhi-NCR, Bengaluru, Pune, Hyderabad, Kolkata, Chennai, and Ahmedabad. Sales in Mumbai grew 1 per cent on an annual basis, while new launches increased by 8 per cent to 49,161 units. This made Mumbai one of the strongest contributors to the overall market activity, the report said.

The city also led in the premium housing and ultra-luxury segment, priced between Rs 20 crore and Rs 50 crore. Mumbai accounted for 214 units sold in this segment, representing 57 per cent of the total sales in this category nationwide. It dominated the above Rs 50 crore category with 66 per cent of all the sales recorded in this segment.

Additionally, Mumbai also led sales in the affordable and mid-income categories, which recorded 17,148 units in the sub-Rs 50 lakh segment, along with 11,570 units in the Rs 50 lakh to Rs 1 crore category.

Delhi-NCR’s Performance

Delhi-NCR experienced a significant slowdown, comparatively. Housing sales in the region declined by 7 per cent on a y-o-y basis, with sales reaching 24,862 units. This marked a 9 per cent drop from the figures of 2025. New launches also fell by 5 per cent to 23,877 units.

Knight Frank said the dip in Delhi-NCR’s performance was due to structural and cyclical factors. The report said that the inventory priced below Rs 1 crore in key locations like Gurugram, Noida, and Delhi had been largely absorbed, while fresh supply had shifted towards projects priced above Rs 2 crore. This trend had also reduced affordability and narrowed the pool of potential homebuyers.

""The report reflects that the residential market continues to perform well, even if the pace of growth has been measured. A marginal rise in sales doesn't necessarily point to weaker demand. Instead, it shows that buyers are being more selective and are taking time to invest in projects they genuinely trust," says Ashok Singh Jaunapuria, MD and CEO, SS Group

This slowdown was not synonymous with price appreciation. Delhi and Faridabad have recorded price growth of 18 per cent each, while Ghaziabad recorded a rise of 15 per cent.

Shishir Baijal, international partner, and chairman and managing director, Knight Frank India, said, “India’s housing market continues to reflect the stability of its strong fundamentals, with H1 2026 delivering one of the strongest half-year sales performances of the past decade. While growth has reduced following a steep recovery from pandemic lows, the market’s underlying fundamentals remain firmly intact. Supported by urbanisation, infrastructure investment and a stable macroeconomic environment, India’s residential sector is steadily consolidating while transitioning to the next phase of its evolution.”

Despite the regional disparities, India’s residential market continues to have a strong footing. Developers have launched a total of 187,350 units during H1 2026, which is up by 4 per cent y-o-y. The unsold inventory has stood at 525,695 units.