A comprehensive primary housing report for Q1 2026 by real estate consultant PropTiger (Real INSIGHT – Residential Q1 2026) highlights a broad-based upcycle across India’s top eight metropolitan property markets.
The most notable milestone of the quarter is that the weighted average housing price across these top cities crossed the ₹10,000 per sq ft mark for the first time, hitting an average of ₹10,050 per sq ft.
1. Price Appreciation Across Top 8 Cities
Residential property prices saw an annual (YoY) increase ranging from 3% to 24%. Bengaluru led the charge with a massive 24% YoY surge, accelerating significantly from its 14% growth rate in Q1 2025. This rapid growth has officially established Bengaluru as India’s second-costliest residential primary market.
The table below outlines the changes in average housing prices and growth trends across major urban centers:
| City | Average Price (Q1 2026) | YoY Price Growth | Market Standing / Context |
| Mumbai (MMR) | ₹15,120 / sq ft | +20% | Remains India’s costliest residential real estate market. |
| Bengaluru | ₹9,785 / sq ft | +24% | Second-costliest market; growth driven by stable GCC and startup hiring. |
| Delhi-NCR | ₹9,534 / sq ft | +18% | Growth moderated significantly compared to the 43% surge in Q1 2025. |
| Pune | — | +12% | Steady mid-tier appreciation. |
| Hyderabad | — | +11% | Sustained institutional demand base. |
| Ahmedabad | — | +8% | Moderate growth; accompanied by a massive surge in new supply. |
| Kolkata | — | +7% | Modest price appreciation amidst lower absorption cycles. |
| Chennai | — | +3% | Slowest price growth among the top 8 tracked cities. |
2. Supply vs. Demand Dynamics
While prices maintained their upward trajectory, overall transaction volumes experienced a marginal contraction across the combined markets. Total housing sales dipped by 2.2% YoY to 95,973 units, while new supply remained flat, dipping 0.1% YoY to 93,065 units.
However, individual cities showed severe divergence in buyer behavior and developer activity:
Sales Volume Trends
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The Gainers: Year-on-year sales volumes grew robustly in Chennai (+43%), Bengaluru (+33%), Hyderabad (+25%), and Delhi-NCR (+11%).
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The Decliners: Conversely, sales fell significantly in Kolkata (-24%), Ahmedabad (-23%), Pune (-21%), and Mumbai MMR (-15%).
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The Leader: Despite dropping 15% in sales volume, Mumbai MMR remained the highest-selling market overall with 26,116 units shifted, followed by Bengaluru at 15,603 units.
Launch and Supply Trends
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Ahmedabad’s Supply Boom: Ahmedabad witnessed an extraordinary 96% YoY increase in new project launches, defying the national flatline.
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Supply Reductions: New launches dropped substantially in Kolkata (-24%), Mumbai MMR (-13%), and Bengaluru (-13%).
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The Premium Shift: New inventory remains heavily skewed toward premium and upper mid-income segments, especially in MMR, Bengaluru, and Delhi-NCR.
3. Structural Drivers Behind the Data
The report isolates a few macroeconomic shifts defining the 2026 housing landscape:
The Durability of Tech-Wealth: Bengaluru’s decoupling from broader IT sector cooling is attributed to its Global Capability Centres (GCCs) and an enduring startup ecosystem. This creates a highly resilient consumer base less vulnerable to traditional IT hiring dips.
Inventory Discipline over Liquidation: Industry leaders point out that developers are actively choosing to maintain price integrity and project viability rather than slashing prices to force volume liquidation. This points to a disciplined, maturing residential market operating within a healthy supply-demand equilibrium, though luxury and near-luxury premium brackets may face longer absorption timelines moving into H2 2026.
