India’s residential sales remain steady in 9M 2026: Knight Frank

Mumbai, Oct 5 (TNT): Residential sales across eight major Indian markets remained largely unchanged at 2,58,238 units during January-September 2026, while differences across cities and price segments widened, indicating a more selective housing market, according to a reported released by Knight Frank India.

The property consultancy said 2,79,899 residential units were launched during the period, registering a 4 per cent year-on-year growth.

Launches exceeded sales for the 16th consecutive quarter, the report revealed.

Mumbai recorded the highest sales at 72,804 units, followed by Bengaluru with 43,140 units and Pune with 36,402 units. Hyderabad recorded 29,125 units, up 2 per cent year-on-year.

The National Capital Region (NCR) was the only major market to register a decline, with sales falling 11 per cent year-on-year to 35,574 units, the report said.

The decline was largely concentrated in the Rs 5-10 crore segment, where sales fell 39 per cent to 4,033 units.

The shift towards higher-ticket housing continued, with homes priced above Rs 1 crore accounting for 55 per cent of total sales during the first nine months, up from 50 per cent a year earlier, the report said.

The Rs 1-2 crore segment remained the largest category, accounting for 77,087 units or 30 per cent of total sales, registering 6.8 per cent growth. Sales in the Rs 2-5 crore segment rose 19.4 per cent to 51,501 units.

Sales of homes priced below Rs 50 lakh declined 14 per cent year-on-year to 47,660 units, accounting for 18 per cent of total sales.

Quarters-to-Sell (QTS) rose to 6.1 quarters in Q3 2026 from 5.8 quarters a year earlier, marking the fourth consecutive quarterly increase and the highest level since Q2 2023.

Residential prices increased across all tracked markets during Q3 2026, with annual growth ranging from 3 per cent to 17 per cent.

Hyderabad recorded a 3 per cent increase, while Bengaluru registered 11 per cent growth.

Knight Frank India Chairman and Managing Director Shishir Baijal said the residential market was entering a more discerning phase, with the quality and relevance of supply becoming increasingly important alongside demand.

He said the moderation in NCR was led by the Rs 5-10 crore segment, while the Rs 2-5 crore segment continued to grow across most major markets.

The shift towards higher ticket sizes and the gradual increase in QTS pointed towards market normalisation rather than a broad-based slowdown, he added.

The report said the residential market was plateauing, with sales averaging around 87,000 units per quarter over the past three years.

It identified subdued NCR demand, increasing premium inventory in Bengaluru and Pune, slower absorption at the lower end and inflation concerns as key factors to watch.

TNT KS