In the first quarter of 2026, apartment prices in India's leading seven cities experienced significant increases, ranging from 8% to 20%. This surge is attributed to escalating input costs, as reported by real estate consultancy JLL India. Despite a slight deceleration in buyer demand, housing sales rose by 8% year-on-year, with a total of 70,631 units sold, compared to 65,222 units in the same period last year. Additionally, new supply saw a considerable uptick, climbing 13% to reach 90,023 units. The analysis encompasses major markets including Delhi-NCR, Mumbai, Bengaluru, Pune, Chennai, Hyderabad, and Kolkata, focusing exclusively on apartments and excluding other residential formats like villas and plotted developments.
The data indicates that while the residential market is witnessing growth in both supply and demand, the rate of new launches is currently outpacing sales. This trend highlights a cautious buyer sentiment amid prevailing economic uncertainties. According to Siva Krishnan, Senior Managing Director at JLL, the residential sector is navigating a transitional phase characterized by robust supply coupled with measured buyer activity. The substantial growth in new launches, at 13% year-on-year, juxtaposed with a more modest sales growth of 8%, suggests that potential buyers are exercising greater discretion in their purchasing decisions.
A notable shift in buyer preferences is evident, with an increasing inclination towards premium housing. Sales of apartments priced above Rs 1 crore surged by 30% to 50,362 units, while the segment of homes priced below Rs 50 lakh experienced a 24% decline, totaling 20,269 units. The premium segment now accounts for 71% of total sales, a significant rise from 59% a year ago. Particularly noteworthy is the 67% increase in sales within the Rs 1.5 crore to Rs 3 crore bracket, underscoring a growing demand for larger homes located in prime areas. Conversely, the share of homes priced below Rs 1 crore has decreased to 29% from 41%, reflecting the impact of rising land and construction costs, as well as a strategic focus from developers on higher-margin projects.
Overall, the current market dynamics suggest a complex interplay between rising prices, shifting buyer preferences, and economic factors influencing consumer behavior. While the demand for premium housing is strong, the slower growth in sales relative to new launches indicates a cautious approach from buyers. As the real estate landscape continues to evolve, stakeholders will need to adapt to these changing trends to effectively meet market demands.