Mumbai: Residential Market Viewpoints Q3 2026 shows a recovery in India’s residential real estate market, with housing sales across the Top 7 cities rising 3% year-on-year and 10% quarter-on-quarter to approximately 1,00,200 units in Q3 2026.
The sales were valued at around ₹1.55 lakh crore, while end-user buyers returned to complete purchases deferred during the previous quarter.
According to the Residential Market Viewpoints Q3 2026 report, new residential launches also increased during the quarter, rising 18% year-on-year to approximately 1,14,300 units from around 96,700 units in Q3 2025.
Launches were up 8% sequentially from approximately 1,06,000 units in Q2 2026. The report attributed the rebound to developers releasing pipelines held back during the previous quarter amid improving buyer enquiries and steadier market sentiment.
Residential Market Viewpoints Q3 2026: Housing Sales Rise Across All Seven Cities
The Residential Market Viewpoints Q3 2026 report noted that all seven cities recorded sequential growth in housing sales during Q3 2026.
- Sales reached approximately 1,00,200 units, compared with 90,700 units in Q2 2026 and 97,100 units in Q3 2025.
- Sales value increased 13% quarter-on-quarter and 2% year-on-year to approximately ₹1.55 lakh crore.
The recovery was driven by end-use buyers returning to complete purchases that had been deferred in the previous quarter, supported by stable borrowing costs and a wider choice of products across price segments.
- MMR continued to record the highest sales volume, with approximately 31,750 units sold in Q3 2026, accounting for 32% of total sales across the Top 7 cities.
- Bengaluru followed with 16,650 units, while Pune and NCR recorded approximately 15,700 and 13,750 units, respectively. Hyderabad registered 12,950 units.
- Together, MMR, Bengaluru, Pune, NCR and Hyderabad accounted for 91% of total housing sales during the quarter.
- On a year-on-year basis, Hyderabad recorded the strongest sales growth at 15%, followed by Bengaluru at 12% and MMR at 5%.
- Chennai registered the steepest annual decline at 10%, followed by Pune at 5% and Kolkata at 4%. NCR recorded a 1% annual decline, although all seven cities posted sequential sales growth.
Also Read: RBI Repo Rate Hike: Industry Weighs Impact on Housing Demand and Affordability
Residential Market Viewpoints Q3 2026: MMR, Hyderabad and Pune Lead New Launches
The Residential Market Viewpoints Q3 2026 report said MMR, Hyderabad, Pune, Bengaluru and NCR collectively accounted for approximately 91% of new residential supply additions during the quarter.
- MMR led the market with approximately 37,500 launches, representing about 33% of total new supply.
- Hyderabad followed with approximately 18,950 units, while Pune recorded 18,750 units. Bengaluru and NCR added approximately 17,700 and 10,900 units, respectively.
- Chennai and Kolkata recorded comparatively smaller launch pipelines of approximately 5,850 and 4,650 units.
- Pune recorded the strongest quarterly growth in new launches at 48%, followed by Kolkata at 31% and Hyderabad at 11%. Chennai and MMR recorded sequential increases of 10% and 9%, respectively.
- Bengaluru’s launches declined 18%, while NCR recorded a 3% sequential decline.
On a year-on-year basis, Hyderabad led with a 120% increase in launches, followed by MMR at 27% and Bengaluru at 16%. NCR, Chennai, Kolkata and Pune recorded annual declines of 14%, 9%, 5% and 3%, respectively.
Residential Market Viewpoints Q3 2026: Residential Supply Mix Broadens Towards Lower Price Segments
A key trend highlighted in Residential Market Viewpoints Q3 2026 was the broadening of the residential launch mix beyond the premium segment.
Homes priced below ₹40 lakh accounted for 14% of new launches in Q3 2026, more than double their share in the previous quarter and the highest level since Q4 2025.
The upper-mid segment, covering homes priced between ₹80 lakh and ₹1.5 crore, remained the largest category, accounting for approximately 31% of new launches.
The high-end segment, priced between ₹1.5 crore and ₹2.5 crore, represented 24% of launches. Homes priced above ₹1.5 crore collectively accounted for approximately 38% of total residential launches.
The combined share of affordable and lower-mid housing, covering homes priced below ₹80 lakh, increased to 31% of launches in Q3 2026 from 25% in Q2 2026. At the same time, the share of homes priced above ₹2.5 crore fell to 14% from 22%.
The report said the rebalancing reflected developers moving down the price curve, with a focus on volume and faster absorption following two quarters of premium-heavy pipelines.
Among the Top 7 cities, Hyderabad had the highest concentration of premium supply, with 66% of new residential launches priced above ₹1.5 crore.
NCR followed at 62%, while Bengaluru recorded 52%. MMR had a more evenly distributed launch mix, with 30% of launches priced above ₹1.5 crore.
Kolkata had the lowest concentration of premium supply, with only 4% of new launches priced above ₹1.5 crore. The city also recorded the highest combined affordable and lower-mid share at 57%.
Pune followed with 12% of launches priced above ₹1.5 crore and a 37% affordable-plus-lower-mid share.
Residential Market Viewpoints Q3 2026: Housing Inventory Rises 12% Annually
According to Residential Market Viewpoints Q3 2026, available housing inventory across the Top 7 cities stood at approximately 6,30,600 units at the end of Q3 2026.
This represented a 2% quarterly increase from approximately 6,16,500 units and a 12% annual rise from 5,61,750 units at the end of Q3 2025.
The report noted that inventory continued to build for the third consecutive quarter in 2026, although the pace of increase slowed as stronger sales absorption offset part of the rise in new supply.
MMR accounted for the largest share of available inventory at 31%, with approximately 1,98,050 units. Hyderabad accounted for 18%, with 1,14,700 units, while Pune had 86,900 units and Bengaluru 80,200 units. NCR’s available inventory stood at 86,200 units.
Bengaluru recorded the sharpest annual increase in available inventory, rising 35% to 80,200 units. Hyderabad’s inventory increased 20% year-on-year to 1,14,700 units.
MMR recorded a 12% annual increase, while Pune and Chennai rose 5% each and Kolkata increased 9%.
Inventory Overhang Remains at 19 Months
The Residential Market Viewpoints Q3 2026 report showed that inventory overhang across the Top 7 cities remained at approximately 19 months, easing marginally from Q2 2026.
The report attributed the stability to the combination of a 2% quarterly increase in available inventory and a 10% quarterly increase in sales absorption.
Hyderabad remained the clear outlier, with an inventory overhang of 28 months. Kolkata followed at 22 months, while MMR and Chennai stood at 19 and 18 months, respectively.
NCR recorded 18 months, Pune 17 months and Bengaluru had the lowest overhang among the Top 7 cities at 15 months.
Hyderabad’s 28-month overhang reflected sustained launch activity against a slower pace of absorption. Housing sales in the city rose 15% quarter-on-quarter, but new launches increased another 11%, widening the supply-absorption gap.
MMR, despite having the highest new supply and available inventory, recorded a steadier 19-month overhang.
Pune recorded 17 months of inventory overhang, up 5% quarter-on-quarter, as its 48% increase in launches exceeded its 20% sales growth. Bengaluru had the lowest overhang at 15 months, supported by a reduced launch pipeline and stronger absorption.
Residential Market Viewpoints Q3 2026: Residential Prices Rise 7% Year-on-Year
Residential prices continued to increase across the Top 7 cities, with the Residential Market Viewpoints Q3 2026 report recording a 7% year-on-year and 1% quarter-on-quarter increase.
The average price rose to ₹9,714 per sq ft in Q3 2026 from ₹9,105 per sq ft in Q3 2025 and ₹9,575 per sq ft in Q2 2026.
NCR recorded the highest annual price appreciation at 12%, followed by Bengaluru at 8% and Kolkata at 7%. MMR, Pune, Hyderabad and Chennai recorded annual price growth in the 4%-6% range.
The average price across MMR stood at ₹17,950 per sq ft, the highest among the Top 7 cities. NCR recorded ₹9,980 per sq ft, Bengaluru ₹9,600 per sq ft, Pune ₹8,420 per sq ft, Hyderabad ₹8,200 per sq ft, Chennai ₹7,345 per sq ft and Kolkata ₹6,500 per sq ft.
Residential Market Outlook for Q4 2026
The Residential Market Viewpoints Q3 2026 report said the Indian residential real estate market entered the final quarter of 2026 with demand recovering and the supply mix broadening.
Sales recovered 10% sequentially in Q3 2026, led by end-user buyers completing deferred purchases and supported by stable borrowing costs.
The report said the gap between new residential launches and sales narrowed during the quarter, although available inventory remained above 6.30 lakh units.
Inventory management alongside fresh launches therefore remained a priority for developers, particularly in cities with higher overhang such as Hyderabad.
The report identified five key trends to watch in the coming quarters: launch discipline and its impact on available stock; the relationship between price gains and sales growth; the response to increased affordable supply; the impact of leaner luxury and ultra-luxury supply on top-end pricing; and whether year-end absorption can sustain the recovery after sales returned above 1 lakh units.
