India's housing market experienced a moderation in the second quarter of 2026, but Bengaluru stood out as the top performer among the country's major residential hubs. The city witnessed significant growth in both new project launches and sales, bucking the national trend.
Despite an overall slowdown, Mumbai Metropolitan Region (MMR) maintained its position as the largest market by sales volume. Meanwhile, the National Capital Region (NCR) registered the sharpest increase in average home prices, even with a decline in sales and fewer new project introductions.
Bengaluru's Strong Performance in Q2 2026
Bengaluru recorded an impressive 41% year-on-year surge in new housing launches, totaling approximately 21,670 units in Q2 2026. This strong supply expansion, coupled with a 1% rise in residential sales to about 15,285 units, positioned Bengaluru as one of only three major cities to see annual sales growth.
The city's growth was largely concentrated in premium and luxury housing, with nearly 96% of new supply priced above ₹80 lakh. This trend reflects sustained demand from affluent buyers and professionals within Bengaluru's thriving technology and Global Capability Centre (GCC) ecosystem. The average residential prices also increased by 8% annually, and available inventory grew by 34% year-on-year, indicating a dynamic market fueled by infrastructure development and strong employment hubs.
Mumbai Dominates Sales Volume
The Mumbai Metropolitan Region (MMR) reaffirmed its status as India's largest residential market, recording around 28,710 home sales in Q2 2026. This figure was achieved despite an 8% annual decline in sales. Alongside Bengaluru, MMR accounted for nearly 48% of total housing absorption across India's top seven cities, underscoring its significant market share.
MMR also led in new project launches, adding approximately 34,555 new units during the quarter, a 23% increase from the previous year. Combined, Mumbai and Bengaluru contributed over half of all residential supply introduced nationwide, reflecting strong developer confidence in these high-demand regions.
NCR Sees Highest Price Appreciation
The National Capital Region (NCR) presented a mixed picture, with residential sales declining by 6% year-on-year to around 13,365 units and new launches dropping by 40% to about 11,205 units. However, the region stood out with the highest annual increase in average residential prices, soaring by 13%.
Over 61% of new launches in NCR focused on luxury projects priced above ₹1.5 crore, indicating a continued appetite for high-end properties. Siddharth Jain, President of NAREDCO NextGen NCR, noted that the slowdown in launches was a cautious developer approach rather than a sign of weak demand. He anticipates a revival in project launches, driven by healthy sales, improving macroeconomic conditions, supportive interest rates, and ongoing infrastructure development.
Pratik Tibrewala, Senior Vice President at M3M India, highlighted a shift towards demand-driven development in Gurugram, with buyers prioritizing location, quality, and long-term value. This focus on differentiated products and sustainable communities is expected to support a more resilient housing market in the long term.