India's major residential markets show varied performance in the first half of 2026. Bengaluru leads with a 5% sales growth, while Mumbai remains the largest market by volume. Delhi-NCR faces a 7% sales drop due to high property prices and shifting buyer sentiment, marking a departure from the growth seen in other major cities.
The Indian housing market is showing distinct regional trends in the first half of 2026. According to recent industry data for the period ending June 2026, economic activity and infrastructure development are creating clear winners and laggards across the country's top residential hubs.
Bengaluru and Mumbai Market Performance
Bengaluru continues to benefit from its strong link to the Global Capability Centre ecosystem. The city saw 27,968 housing units sold in the first half of 2026, a 5% increase compared to the same period last year. Developers are responding to this demand by increasing new supply, with 34,749 homes launched. The commercial office sector in Bengaluru is also active, recording 14.1 million square feet of leasing activity, which often serves as a precursor to future residential demand. Prices in the region have adjusted upward, with an average rate of ₹9,354 per square foot.
Mumbai remains the largest residential market by volume in India. During the first six months of 2026, the region recorded 47,355 home sales. While sales volume remained steady, developers increased new launches to 49,161 units. A positive sign for the Mumbai market is the 4% reduction in unsold inventory, suggesting that completed and under-construction units are being absorbed by the market. Navi Mumbai is becoming a more prominent part of this growth, supported by ongoing infrastructure improvements that are attracting both developers and homebuyers.
Challenges in the Delhi-NCR Market
Delhi-NCR is currently the only major market among those tracked to report a decline, with housing sales falling 7% to 24,862 units. The data indicates that the region is struggling with affordability issues, as the supply of homes priced below ₹1 crore has significantly reduced. Many developers are focusing on the premium segment, with a heavy concentration of launches priced between ₹2 crore and ₹5 crore. This shift in the product mix has made it difficult for first-time or middle-income buyers to enter the market, impacting overall sales velocity.
Despite the dip in residential demand, the commercial real estate sector in Delhi-NCR shows resilience. Office leasing has remained stable, with rents increasing by 13% to ₹106 per square foot per month. Noida is increasingly viewed as an emerging commercial hub, aided by the development of the Noida International Airport. For investors, the key monitorable in these regions will be how developers balance their product mix to address affordability in Delhi-NCR, versus maintaining the momentum in cities like Bengaluru where employment growth continues to support residential absorption.