Mumbai, May 1 (TNT): India’s residential real estate market remained on a steady growth path in the first quarter of 2026, with a notable shift towards premium housing even as supply outpaced sales.
A strong linkage between new project launches and sales persisted during the January–March period, with projects launched in the quarter contributing about 26 per cent to overall sales.
Developers with a strong track record of timely delivery and price appreciation continued to attract buyers.
According to JLL, the market is currently undergoing a transitional phase marked by robust supply and cautious buyer sentiment.
While new launches grew 13 per cent year-on-year to 90,023 units, sales rose by 8 per cent, indicating a temporary divergence driven by prevailing economic uncertainties.
“The residential market is navigating a transitional phase where robust supply is meeting with measured buyer sentiment,” said Siva Krishnan, Senior Managing Director, Residential Services, India, JLL, adding that the trend reflects a healthy market adjustment rather than a structural concern.
The premium housing segment dominated market performance during the quarter. Homes priced above ₹1 crore accounted for 71 per cent of total sales, up from 59 per cent a year earlier, registering a 30 per cent annual growth. The ₹1.5–3 crore category led this expansion with a sharp 67 per cent increase, reflecting growing demand for larger, well-equipped homes in prime locations.
In contrast, the affordable housing segment (below ₹1 crore) saw a 24 per cent decline in sales, with its market share falling to 29 per cent from 41 per cent.
The decline has been attributed to rising input costs, limited supply in urban centres and a strategic shift by developers towards higher-margin projects.
Developers continued to demonstrate strong confidence in the market, with record launch activity during the quarter.
Bengaluru led with 27,055 new units, marking a 32 per cent year-on-year increase, while Delhi NCR recorded a 64 per cent surge in launches. Together, these markets accounted for nearly 45 per cent of total supply.
Residential property prices across the top seven cities continued to rise, recording annual growth in the range of 8 to 20 per cent, driven by strong demand, increasing costs and a shift towards premium offerings.
Despite the moderation in sales growth, industry experts remain optimistic about the long-term outlook, citing strong fundamentals such as rising urbanisation, higher disposable incomes, infrastructure development and increasing preference for premium housing.
The sector is expected to witness sustained growth in the coming quarters, supported by a robust pipeline of launches and improving buyer confidence as economic conditions stabilise.
TNT TS
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