Residential sales across eight major Indian cities reached 1,71,471 units in the first half of 2026, a 1 per cent rise year-on-year, according to a Knight Frank India report released on 9 July 2026. The near-flat trajectory signals a market entering consolidation after four consecutive years of post-pandemic recovery, rather than a fresh growth cycle.

Sales and Supply at a Glance

Developers launched 1,87,350 units in H1 2026, up 4 per cent year-on-year, outpacing sales and leaving a launches-to-sales gap of approximately 15,879 units — a pattern that has persisted since 2022. Despite the surplus, the market has remained fundamentally balanced, with developers maintaining a disciplined approach to new supply.

Stable economic fundamentals, infrastructure-led urban development, and steady employment conditions have kept end-user demand buoyant across India's leading residential markets, the report noted.

Premium Housing Now Dominates

H1 2026 marked a decisive shift toward premium housing: homes priced above ₹1 crore accounted for 54 per cent of total sales, up from 49 per cent in the same period a year earlier. The report attributed this to genuine demand from higher-income households, but also flagged the progressive erosion of the affordable segment, as sustained price appreciation has repriced mid-tier inventory into higher brackets.

New supply at lower price points has remained constrained, narrowing the effective buyer base even as the market stays historically active in absolute volume terms.

What the Industry Said

Shishir Baijal, International Partner, Chairman and Managing Director of Knight Frank India, said: 'While growth has reduced following a steep recovery from pandemic lows, the market's underlying fundamentals remain firmly intact. Premium homes now account for more than half of all residential sales, reflecting rising household incomes, evolving buyer aspirations and growing confidence in long-term homeownership.'

City-Wise Pricing

Residential prices rose across markets, though at a more measured pace compared to 2023–24. Mumbai remained the most expensive residential market, with average prices at ₹36,881 per sq. ft., followed by Delhi at ₹26,027 per sq. ft. and Gurugram at ₹18,354 per sq. ft.

What This Means Going Forward

The consolidation phase raises questions about housing affordability and inclusive access: as premium inventory absorbs a growing share of demand, the affordable and mid-segment buyer risks being priced out structurally. Industry observers will watch whether developers respond to the launches-to-sales gap by moderating new supply, or whether unsold inventory begins to accumulate heading into H2 2026.