Written by AI Powered PMC Akbar Jiwani
Special Correspondent: Real Estate, for Realnewsofindia.com
Knight Frank says launches have outpaced sales for 16 straight quarters; homes above ₹1 crore now make up 55% of sales
Mumbai/New Delhi, 6 October 2026: India’s housing market is moving into what industry experts call a more selective phase. Sales in the top eight cities were flat over the first nine months of calendar year 2026, while buyers kept shifting towards higher-priced homes, according to the latest report from property consultant Knight Frank India, released on 5 October.
Sales in the January-September period were 2,58,238 units, flat from a year earlier. New launches rose 4% year-on-year to 2,79,899 units. Launches have now exceeded sales for 16 consecutive quarters. In the July-September quarter alone, sales were 86,767 units (down 1% year-on-year) and launches were 92,549 units (up 4%).
City-wise picture
Mumbai remained the largest market with 72,804 units sold, up 1%. Bengaluru recorded 43,140 units, up 5%. Pune was flat at 36,402 units. The National Capital Region was the weakest, at 35,574 units, down 11%. Hyderabad, Ahmedabad, Chennai and Kolkata saw growth of roughly 2% to 4%.
Premium homes gain, affordable segment shrinks
Homes priced at ₹1 crore and above accounted for 55% of all sales, up from 50% a year earlier. The ₹1-2 crore bracket made up 30% of sales (77,087 units, up 6.8%), while the ₹2-5 crore segment rose 19.4% to 51,501 units. Sales of homes below ₹50 lakh fell 14% to 47,660 units, and their share dropped to 18%.
Inventory and prices
The time needed to sell existing unsold stock (quarters-to-sell) rose to 6.1 quarters in Q3 2026 from 5.8 a year earlier. Prices rose 3-6% year-on-year in most markets, while Bengaluru led with an 11% increase.
“India’s residential market is entering a more discerning phase, in which the quality and relevance of supply will matter,” said Shishir Baijal of Knight Frank India.
Note: Other trackers show slightly different numbers. Anarock reported a 3% rise in Q3 sales across the top seven cities, with launches up 18%. The difference comes from varying city coverage and methodology.
All eyes on the RBI
The sector now awaits the Reserve Bank of India’s Monetary Policy Committee decision on 7 October. The repo rate stands at 5.25%, and many economists expect a 25 basis point hike to 5.50%, which would be the first increase since February 2023. Retail inflation rose to 4.82% in August, above the RBI’s 4% target for the third straight month, partly due to higher crude oil prices and global bond yields.
For a floating-rate borrower, the effect is modest but real. On a ₹50 lakh, 20-year loan at 8.50%, the EMI is about ₹43,400. A 25 bps increase to 8.75% would raise it to about ₹44,200, roughly ₹800 more per month.
Industry voices say a rate hike does not automatically push prices down, but it may slow transactions first, particularly in affordable and mid-income segments, which are more sensitive to financing costs than luxury buyers. Developers may respond with incentives and payment plans instead of cutting quoted prices. Analysts add that markets with strong employment and infrastructure, such as Bengaluru, Hyderabad and Mumbai, are likely to remain more resilient.
What it means
With flat volumes, rising unsold inventory timelines and a possible rate hike, developers are expected to focus on better-located, well-priced and timely-delivered projects. Homebuyers are advised to compare loan offers and check RERA registration before committing.
