Summary of this article
Data from Anarock Research show that around 1,00,220 homes were sold in the seven cities in Q3 2026, compared with 97,080 units in the same quarter last year.
Sales were also 10 per cent higher than in Q2, which indicated a stronger quarter for the residential market.
For buyers, however, the market is not getting easier. Property prices continued to move up, while the supply of homes also increased.
India’s housing market had a better run in the July-September quarter, with homebuyers returning in larger numbers after a relatively slow Q2. Housing sales across the top seven cities rose 3 per cent from a year earlier, while developers stepped up new launches even as higher prices continued to make buyers more cautious.
Data from Anarock Research show that around 1,00,220 homes were sold in the seven cities in Q3 2026, compared with 97,080 units in the same quarter last year. Sales were also 10 per cent higher than in Q2, which indicated a stronger quarter for the residential market.
However, the value of homes that were sold increased slightly. The total sales value increased by 2 per cent over the previous year to Rs 1.55 lakh crore as against Rs 1.52 lakh crore in Q3 2025. There is also a divergence between volume and sales value, which shows how disparate the demand has been across markets and price bands.
MMR remained the biggest housing market by sales, with around 31,750 homes sold during the quarter. Bengaluru followed with about 16,670 units. Together, the two markets accounted for almost half of all homes sold across the seven cities.
Hyderabad was the fastest-growing market, with housing sales rising 15 per cent from a year earlier. Bengaluru followed with a 12 per cent increase, while MMR recorded 5 per cent growth. Sales declined in the remaining four cities.
For buyers, however, the market is not getting easier. Property prices continued to move up, while the supply of homes also increased. This means buyers have more projects to choose from, but they are also having to stretch their budgets further in many markets.
“Demand remains resilient, but buyers are becoming more selective as prices rise,” said Anuj Puri, chairman, Anarock Group.
New Launches Rise Sharply
The bigger movement during the quarter came from the supply side. Developers launched around 1,14,320 housing units in Q3 2026, an 18 per cent increase from 96,690 units a year earlier. Launches were also 8 per cent higher than in Q2 2026, when around 1,05,995 units were added.
MMR led the new supply with around 37,500 units, followed by Hyderabad at 18,950 units. Bengaluru and Pune added another 17,720 and 18,730 units, respectively. Together, MMR, Pune, Bengaluru and Hyderabad accounted for 81 per cent of the quarter’s new launches.
Hyderabad stood out, with new supply more than doubling from 8,630 units in Q3 2025. The city recorded a 120 per cent annual increase in launches, although 97 per cent of the new supply was in premium, luxury and ultra-luxury projects priced above Rs 80 lakh.
MMR’s launches increased 27 per cent year-on-year, while Bengaluru recorded a 17 per cent rise. In contrast, new supply fell 14 per cent in NCR, 9 per cent in Chennai, 4 per cent in Kolkata and 3 per cent in Pune.
The composition of new supply also shows where developers see current demand. Homes priced between Rs 80 lakh and Rs 1.5 crore accounted for the largest share at 34 per cent, followed by the Rs 1.5-2.5 crore segment at 24 per cent. The Rs 40-80 lakh segment accounted for 17 per cent, while homes below Rs 40 lakh made up only 14 per cent.
Inventory Continues To Build
The increase in launches has also pushed up unsold housing inventory. Available inventory across the seven cities rose 12 per cent year-on-year to around 6,30,590 units at the end of Q3 2026, from 5,61,760 units a year earlier. Inventory was around 6,16,500 units at the end of Q2.
According to the report, the increase in unsold homes is something developers will need to keep an eye on. With inventory rising, the key question is whether new projects are being launched at price points and in locations that buyers are actually looking for. For homebuyers, the wider choice is useful, but affordability remains a concern as prices continue to rise.
Prices Continue To Climb
Home prices showed little sign of easing during the quarter. The average residential price across the seven cities rose 7 per cent year-on-year to Rs 9,714 per sq ft in Q3 2026, from Rs 9,105 per sq ft a year earlier.
The increase was much slower when compared with the previous quarter. Average prices rose just 1 per cent from Q2 2026, suggesting that while prices are still moving up, the pace of increase has moderated.
NCR recorded the highest annual price increase at 12 per cent, followed by Bengaluru at 8 per cent.
With the festive season now approaching, developers are likely to see another important sales window. Anarock expects festive demand, stable borrowing costs and the steady flow of new projects to support the market, although buyers are likely to remain cautious about prices.
The message from the Q3 numbers is fairly clear: buyers are still entering the housing market, but rising prices mean they are becoming more selective about what they buy. For developers, location, pricing and product fit could matter as much as launching more projects.
Commenting on the report, Robin Mangla, President, M3M India, said, “India’s residential real estate market continues to hold up well. Housing sales across the top seven cities grew 3 per cent year-on-year in Q3 2026, despite higher prices and ongoing geopolitical uncertainties. The 18 per cent rise in new supply also shows that developers remain confident about demand.”
“In NCR, sales moderated slightly, but residential prices still rose 12 per cent annually, reflecting continued demand for well-connected locations. With the festive season ahead, we expect homebuyer interest to remain healthy, especially for projects that offer good connectivity, useful amenities and long-term value,” he added.
Ashish Sarin, CEO & Director, Alpha Corp Development Limited, said that the Q3 performance shows that housing demand remains resilient despite changing global and economic conditions. Stable economic fundamentals and improving employment prospects have given buyers greater confidence to go ahead with home purchases.
“Demand from end-users remains strong, with more buyers looking at homes as a long-term need rather than simply as an investment. Better connectivity and infrastructure are also making emerging residential corridors more attractive. At the same time, the increase in new supply reflects continued developer confidence and gives buyers more options,” he said.
Taken together, these trends point to a healthier demand-supply balance and should support the sector’s growth. “We believe the next phase of residential growth will be driven by well-planned communities that offer a good location, thoughtful design and the social infrastructure that residents need,” he added.
