India’s eight major residential markets recorded home sales of 171,471 units in the first half of 2026, a marginal 1% year-on-year increase from 170,201 units in the corresponding period last year, with properties priced at ₹1 crore accounting for 54% of total sales. Mumbai retained its position as the country’s largest housing market, with 47,355 units sold, registering a 1% annual increase, a Knight Frank India report said on July 9.
Bengaluru emerged as the fastest-growing market, recording 5% sales growth, supported by resilient demand from the technology sector, while NCR was the only major market to witness a sharp decline, with sales falling 7% year-on-year to 24,862 units, according to Knight Frank India’s latest India Real Estate: Residential and Office (January – June 2026) H1 2026 report.
On the supply side, new launches outpaced sales across most cities, pushing the total unsold housing inventory to 5.25 lakh units, an increase of nearly 4% from a year ago and indicative of a continued inventory build-up since 2022, it noted.
Mumbai, Delhi-NCR, Bengaluru, Pune, Hyderabad, Chennai, Ahmedabad, and Kolkata are the eight primary residential markets tracked by the consultant.
Mumbai retained its position as India’s largest residential market by sales volume in H1 2026, with 47,355 homes sold, supported by sustained end-user demand and healthy activity across both the premium and mid-income segments. Bengaluru followed with 27,968 units sold, driven by robust employment generation, the continued expansion of Global Capability Centres (GCCs), and the resilience of the technology sector, which has supported housing demand across price categories.
Pune recorded sales of 24,890 units, maintaining healthy momentum due to its diversified economic base and ongoing infrastructure development.
The National Capital Region (NCR) was the only major market to underperform, with housing sales declining 7% year-on-year to 24,862 units, extending the 9% decline recorded in 2025.
According to the report, inventory priced below ₹1 crore in premium micro-markets across Gurugram, Noida and Delhi has largely been absorbed, with limited replacement supply. As a result, the available inventory is increasingly concentrated in the ₹2 crore-and-above segment, pricing out a large section of end-users.
Despite the decline in overall sales, NCR dominated the premium housing market, recording the highest sales in the ₹2 crore- ₹ 20 crore price bracket. The region sold 10,783 homes priced between ₹2 crore and ₹5 crore, 3,108 units in the ₹5 crore- ₹10 crore category, and 986 homes in the ₹10 crore- ₹20 crore segment. Mumbai, meanwhile, led the ultra-luxury market, registering 214 sales in the ₹20 crore- ₹ 50 crore category and 23 transactions priced above ₹50 crore.
Premium homes account for more than half of housing sales
A defining trend in H1 2026 was the continued shift towards premium housing. Homes priced above ₹1 crore accounted for 54% of total residential sales, up from 49% a year earlier, underscoring the growing preference for higher-value homes. In the ₹1 crore- ₹ 2 crore category, Bengaluru led with 12,808 units sold, followed by Mumbai with 10,651 units and Hyderabad with 8,588 units, according to the report.
The Knight Frank report showed that sales of affordable homes (below ₹50 lakh) declined 15% to 32,063 units during January-June, from 37,796 units in the year-ago period. The affordable homes category accounted for 19% of the overall sales. In the ₹50 lakh to ₹1 crore price bracket, sales dipped 5% to 46,490 units. The mid-income segment contributed 27 per cent to the total sales.
The ₹1 crore to ₹2 crore ticket-size segment emerged as the most preferred price category in H1 2026, accounting for 29% of the overall residential sales volume, with 50,488 units sold across the country. Bengaluru led this segment, contributing 45% of the total sales volume, with 12,808 units sold during the period.
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The ₹2 crore to ₹5 crore ticket-size segment recorded 19% YoY growth in sales volume, rising from 28,465 units in H1 2025 to 33,888 units in H1 2026. It accounted for 19% of the overall residential sales volume across the eight major markets. NCR emerged as the leading market in this segment, contributing 31% of total sales, with 10,783 units sold during H1 2026.
New supply outpaces sales, prompting developers to deploy flexible payment plans to bridge the gap
Developers launched 187,350 residential units in H1 2026, a 4% YoY increase, among the highest volumes recorded in any first half in the past decade. New supply has now exceeded sales in most markets across successive periods, a trend in place since 2022, with the launches-to-sales gap at approximately 15,879 units during the half-year. The composition of new supply remained skewed toward higher-ticket sizes, with premium projects dominating launches while affordable additions remained constrained.
The persistence of this gap, together with the existing inventory overhang, has reinforced supply-side pressure in the system. In response to moderating sales velocity, developers increasingly deployed demand-side incentives, including flexible payment plans, subvention schemes and stamp duty waivers, to sustain absorption.
The launches and sales trend illustrates that India’s residential market has entered a phase of consolidation, the report said.
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“Premium homes now account for more than half of all residential sales, reflecting rising household incomes, evolving buyer aspirations and growing confidence in long-term homeownership. Supported by urbanisation, infrastructure investment and a stable macroeconomic environment, India’s residential sector is steadily consolidating while transitioning to the next phase of its evolution,” said Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India.
