The Indian housing market experienced a notable decline in sales during the January-March quarter of 2026, with a 4% drop year-over-year, totaling 84,827 units sold across eight major cities. This downturn has been attributed to a combination of high property prices, growing concerns over affordability, and geopolitical uncertainties, particularly stemming from tensions in West Asia. The report by Knight Frank highlights that last year, sales for the same period stood at 88,361 units, indicating a significant shift in market dynamics. While demand has weakened in key markets such as Mumbai, Delhi-NCR, and Pune, other cities like Bengaluru, Hyderabad, Chennai, Ahmedabad, and Kolkata recorded increases in residential property sales.
Shishir Baijal, Chairman and Managing Director of Knight Frank India, emphasized the need to closely monitor this decline in residential demand, especially following a prolonged period of growth. He noted that while the current slowdown could be viewed as a natural consolidation after years of strong performance, the persistent increase in property prices coupled with declining volumes reflects a troubling trend in affordability and market absorption. Furthermore, the ongoing geopolitical tensions have dampened consumer sentiment and reduced interest in residential real estate, contributing to the overall slowdown.
Particularly affected was the Mumbai real estate market, which saw sales decrease by 7% to 23,185 units compared to the previous year. Similarly, in the Delhi-NCR region, sales fell by 11% to 12,734 units during the same quarter. Pune also faced a decline of 11%, with sales dropping to 12,711 units. In contrast, the report noted positive performance in several other cities, with Bengaluru experiencing a 5% increase in sales to 13,092 units, and Hyderabad witnessing a modest growth of 1% to 9,541 units. Chennai reported a significant rise of 9% to 4,763 units, while Ahmedabad and Kolkata saw increases of 2% and 5%, respectively.
Moreover, the new supply of residential properties fell by 2% annually, totaling 94,855 units in the January-March quarter. This reduction in new listings further complicates the market's recovery, as potential buyers may find limited options due to the ongoing affordability challenges. The current landscape presents a complex scenario for the Indian housing market, characterized by fluctuating demand, rising prices, and external uncertainties. Stakeholders will need to navigate these challenges carefully to foster a more sustainable and resilient housing market moving forward.