Written by Ai Powered PMC Akbar Jiwani
Special Correspondent: Realestate for Realnewsofindia.com
New Delhi, 12 October 2026 – India’s residential market is growing in value rather than volume. Housing sales across eight major cities were broadly flat at 2,58,238 units in January–September 2026, according to Knight Frank India data released on 5 October. Buyers are moving towards higher-priced homes, while entry-level demand weakens.
City-wise picture
Mumbai remains the largest market with 72,804 units sold, up 1%. Bengaluru grew fastest among the big markets, rising 5% to 43,140 units. Pune was roughly flat at about 36,402 units. Hyderabad, Ahmedabad, Chennai and Kolkata each grew 2–4%. Together, the seven non-NCR markets rose 2%.
The NCR was the weak spot, with sales down 11% to 35,574 units. Sales in the ₹5–10 crore band there fell 39% to 4,033 units. Gurugram accounts for 57% of the region’s unsold inventory.
Premium homes gain, affordable segment shrinks
Homes priced above ₹1 crore made up 55% of sales, up from 50% a year earlier. The ₹1–2 crore band is the largest segment at 77,087 units, up 6.8%. The ₹2–5 crore band jumped 19.4% to 51,501 units, with Chennai posting 54% growth in this range.
The affordable end is under pressure. Homes priced ₹50 lakh–₹1 crore fell 5.9% to 69,380 units. Homes below ₹50 lakh fell 14% to 47,660 units, and their share of sales dropped to 18%.
Supply and prices
Developers launched 2,79,899 homes in the nine months, up 4%. Q3 launches were 92,549, also up 4%. New supply has exceeded sales for 16 consecutive quarters, pushing the inventory overhang to 6.1 quarters. Prices rose between 3% and 17% across markets.
Knight Frank India chairman Shishir Baijal described the trend as “normalisation rather than a widespread slowdown.” He said income growth, suitable supply and local demand will increasingly determine market performance as the benefits of lower interest rates fade.
Government relief for developers
On 31 July, the Ministry of Housing and Urban Affairs advised state RERAs to extend registration and completion deadlines by four months for projects with deadlines on or after 28 February 2026. The advisory cites supply-chain disruption from the West Asia conflict, which the finance ministry declared a force majeure event on 29 April. It asks RERAs to issue a common order so developers need not file project-by-project applications.
CREDAI president Shekhar Patel called the move “a positive step taken in line with the sector’s demand.”
Also on the regulatory front
From 1 October 2026, resident individual and HUF buyers of property from non-resident sellers can report and pay TDS using their PAN rather than a TAN, with reporting through Form 141. Buyers should verify rates and requirements against official CBDT notifications.
Outlook
With volumes steady, prices rising and the affordable share shrinking, the market is expected to grow in value rather than volume. Affordability for first-time buyers remains the central concern for policymakers and developers.
