India's residential real estate sector demonstrated significant resilience and growth in the second quarter of 2026. A new report by PropEquity reveals that housing sales across the country’s top nine cities increased by 19% year-on-year, totaling 1,12,458 units. This surge was accompanied by an even more substantial rise in new housing supply, which jumped 43% year-on-year to 1,17,609 units during the same period.
Market Performance Remains Strong Amid Global Uncertainties
Despite ongoing geopolitical uncertainties, particularly in the Middle East, the Indian housing market sustained its strong performance. On a quarter-on-quarter basis, housing sales saw a 14% increase, while new supply rose by 27% in Q2 2026, reinforcing the positive market sentiment.
Southern and Western Cities Lead Growth
The growth momentum was predominantly driven by southern and western Indian cities. Bengaluru emerged as the strongest market, registering a 47% rise in housing sales to 21,516 units. Hyderabad followed with a 22% increase, reaching 14,410 units, while Chennai recorded an 18% growth with 6,323 units sold.
Western markets also contributed significantly. Navi Mumbai experienced the highest growth nationwide, with sales skyrocketing by 61% to 11,029 units. Mumbai saw a 32% increase to 10,561 units, and Thane and Pune reported growth of 10% and 9% respectively.
Contrasting Trends in Other Regions
In contrast to the booming southern and western markets, some regions experienced a decline in housing sales. Kolkata saw a 23% drop, and the Delhi-NCR region recorded a 14% decrease in sales during Q2 2026.
“The Indian housing market has remained resilient despite the geopolitical uncertainties in the Middle East. Southern markets continue to lead growth, while Mumbai and Navi Mumbai have also seen strong demand,” stated Samir Jasuja, Founder and CEO of PropEquity. He added, “An important trend has been the rise in new supply after several quarters of constrained launches, leading to stronger absorption levels across key markets. This indicates that demand remains healthy and the ongoing conflict has had minimal impact on the real estate sector.”
Supply Side Surges Across Key Markets
On the supply front, Navi Mumbai led with an impressive 116% year-on-year increase, adding 9,902 new units. Mumbai followed closely with a 111% growth, contributing 10,438 units. Hyderabad's supply rose by 75% to 18,407 units, while Bengaluru's supply expanded by 71% to 24,340 units, solidifying its position as the country's largest housing market by both sales and supply. Hyderabad has also overtaken Pune, Thane, and Delhi-NCR to become the second-largest housing supply market.
Growing Investor Confidence in Indian Real Estate
Jasuja also highlighted a significant increase in investor confidence in India. He noted that investors previously evaluating opportunities in the Middle East are now showing greater interest in the Indian real estate market, attributing this shift to India's economic stability, robust infrastructure growth, and encouraging long-term real estate fundamentals.