Bengaluru emerges as India's strongest housing market in Q2; Mumbai dominates sales, NCR leads price growth

India's housing market moderated in the second quarter of 2026, but Bengaluru emerged as the standout performer among the country's top residential markets, while Mumbai continued to dominate overall sales and NCR registered the sharpest rise in home prices despite weaker demand.

According to ANAROCK Research, housing sales across the top seven cities fell 6% year-on-year to around 90,715 units in Q2 2026 from over 96,285 units a year ago. The report attributed the moderation in demand to uncertainty arising from the ongoing West Asia conflict, supply chain disruptions and cautious buyer sentiment. However, new housing launches increased 7% annually to about 1.06 lakh units, indicating that developers remain confident about long-term demand despite near-term headwinds.

Bengaluru outperforms peers

Among the major cities, Bengaluru was one of only three markets to record annual sales growth, with residential sales rising 1% to approximately 15,285 units during the quarter. The city also witnessed one of the strongest supply expansions, with new launches jumping 41% year-on-year to around 21,670 units. Nearly 96% of the fresh supply was concentrated in premium and luxury housing priced above ₹80 lakh, reflecting sustained demand from affluent homebuyers and professionals working in the city's technology and Global Capability Centre (GCC) ecosystem.

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The city also recorded an 8% annual increase in average residential prices and the highest growth in available inventory among the top seven cities, with unsold stock rising 34% year-on-year. ANAROCK noted that premium housing, GCC-led employment hubs and infrastructure-driven corridors continue to drive residential demand, with Bengaluru benefiting from all three factors.

Mumbai remains the largest housing market

Mumbai Metropolitan Region (MMR) retained its position as India's biggest residential market, recording sales of around 28,710 homes in Q2 2026 despite an 8% annual decline. Together, Mumbai and Bengaluru accounted for nearly 44,000 home sales, representing almost 48% of total housing absorption across the top seven cities.

The two cities also dominated new project launches. MMR added approximately 34,555 new units during the quarter, a 23% increase over the previous year, while Bengaluru contributed another 21,670 units. Combined, they accounted for more than half of all residential supply introduced during the quarter, highlighting continued developer confidence in these two high-demand markets.

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NCR sees highest price appreciation

NCR presented a contrasting picture. While residential sales declined 6% year-on-year to around 13,365 units and new launches dropped 40% to about 11,205 units, average residential prices rose 13% annually—the highest among all seven cities. More than 61% of new launches in the region were concentrated in luxury projects priced above ₹1.5 crore, indicating continued appetite for premium housing despite fewer project launches.

Siddharth Jain, President, NAREDCO NextGen NCR, said the slowdown in launches reflected developers' cautious approach amid global uncertainty rather than weak demand. He said healthy sales, improving macroeconomic conditions, supportive interest rates and the upcoming festive season are expected to revive project launches, while ongoing infrastructure development and improved connectivity continue to strengthen NCR's appeal.

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Pratik Tibrewala, Senior Vice President and Head-Corporate Finance at M3M India, said Gurugram is witnessing a shift towards more demand-driven development as buyers increasingly prioritise location, quality, connectivity and long-term value. He added that rising demand for branded residences is encouraging developers to focus on differentiated products, better execution and sustainable communities, which should support a more resilient housing market over the long term.