Residential prices continued to climb, with the weighted average increasing 4% to ₹8,952 per sq ft. Demand was largely concentrated in the mid and premium segments, led by the ₹1–2 crore category with 6,190 units sold, followed by the ₹2–5 crore segment at 3,235 units.“This is a significant milestone in a quarter when sales in Indian markets have declined by 4%, and it carries the risk of a slowdown. It is also the only large residential market to witness launches increase by 4% YoY to 17,185 units from 16,524 units in Q1 2025,” the report said.
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Mid and premium segments dominate
The report said demand remained concentrated in mid- and premium-priced housing. The ₹1–2 crore segment led with 6,190 units, followed by the ₹2–5 crore segment at 3,235 units.
In contrast, affordable housing saw a sharp decline, with significant drops in sales in the sub- ₹50 lakh and ₹50 lakh– ₹1 crore categories.
The luxury segment also expanded, with homes priced between ₹10–20 crore witnessing the highest growth, albeit on a low base.
The residential sector in remains robust, with an indicative preference for mid to premium housing segments in the city, Rahil Gibran, National Director, Occupier Strategy and Solutions, Bengaluru, Knight Frank India said.
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Housing sales drop 4% across the top eight cities
Housing sales across India’s top eight cities moderated by 4% year-on-year in Q1 2026 to 84,827 units, down from 88,361 units in the same period last year, the report said. The dip signals early signs of recalibration amid global uncertainties, including geopolitical tensions such as the US-Iran conflict, following a prolonged period of strong growth.
Sales declined in key markets, including Mumbai (down 7% to 23,185 units), Delhi-NCR (down 11% to 12,734 units), and Pune (down 11% to 12,711 units). In contrast, demand remained resilient in Bengaluru (up 5% to 13,092 units), Hyderabad (up 1% to 9,541 units), and Chennai (up 9% to 4,763 units), with additional growth seen in Ahmedabad and Kolkata.
New supply also declined marginally by 2% to 94,855 units during the quarter. Launch activity slowed across most cities, except , Chennai, and Ahmedabad. NCR recorded the sharpest drop in new launches at 8% YoY, followed by Hyderabad and Kolkata (down 6% each), while Pune and Mumbai saw relatively smaller declines of 5% and 1%, respectively.
Demand remained skewed toward premium housing. Sales of homes priced above ₹1 crore grew 11% YoY, even as the sub- ₹50 lakh and ₹50 lakh– ₹1 crore segments contracted by 23% and 12%, respectively. The ₹1–2 crore segment drove much of this growth, rising 10% YoY and accounting for 29% of total sales. Higher-end categories also saw strong traction, with sales increasing 17% in the ₹2–5 crore segment, 12% in the ₹10–20 crore segment, and a sharp 80% surge in the ₹20–50 crore bracket.