India’s residential real estate market has entered a phase of mature growth driven by demand, with over 93,000 new units launched and nearly 96,000 units sold in the top eight cities in the first quarter of 2026. According to a report by PropTiger, the supply increased by 1.1% sequentially, and sales saw a 1% quarter-on-quarter improvement.
The average price per square foot reached a record high of Rs 10,050, surpassing the five-digit mark for the first time. This indicates a shift towards value creation driving market health instead of transaction volume, as stated by Prakash Tejwani, CEO of PropTiger. The market is now more disciplined, with growth driven by demand quality, inventory discipline, and buyer confidence rather than speculative activities.
Bengaluru stood out as a top performer, witnessing a 33% year-on-year increase in sales with 15,603 units sold, maintaining a balanced market with near-equal new supply and sales absorption. Mumbai Metropolitan Region remained the largest market by volume and value, recording 26,116 sales units in Q1 2026, despite a moderation in performance compared to the previous year.
Chennai, Hyderabad, and Delhi-NCR also saw significant sales growth ranging from 11% to 43%, while Pune, Kolkata, and Ahmedabad exhibited mixed trends. The report highlighted a concentration of new launches in premium and upper mid-income segments in major cities, leading to higher average property prices. Looking ahead to Q2 2026, the firm anticipates a 2–4% sequential growth and 4–8% year-on-year price appreciation across major metros, driven by limited mid-segment supply.
