Indian Property Market Slows: Sales Drop 13%, New Launches Down 19%

• Indian residential property market sees a significant slowdown, with home sales and new project launches declining.
• Home sales in nine major cities fell 13% year-on-year to 98,761 units in Q1 2026, dropping below 100,000 for the first time in four years.
• New home supply decreased by 19% year-on-year, with developers acting cautiously due to rising costs and high interest rates.
• Despite declining sales, prices are unlikely to fall immediately as developers gain control due to reduced supply, especially in affordable segments.
• Bengaluru remains strong with a 16% quarterly growth, while Delhi-NCR sees increased sales but mostly in premium segments, and other major cities like Mumbai, Pune, Thane, and Hyderabad experience declines.

Key Questions Answered

Will property prices drop soon despite falling sales?

Property prices are unlikely to drop immediately despite falling sales. Sales in the top nine cities fell 13% year-on-year to 98,761 units in Q1 2026.

Which Indian cities still show strong housing demand?

Mumbai Metropolitan Region (MMR) and Bengaluru show strong housing demand, accounting for 48% of total sales in Q1 2026. Delhi-NCR also remains resilient, with Tier 2 cities emerging as new hubs.

How will high interest rates affect future home buying?

High interest rates, alongside rising construction costs and uncertainty over future demand, are contributing to a slowdown in housing sales and new project launches.