India’s residential market is entering a different phase.
After three years of value-led expansion, the first half of 2026 saw housing sales hold at a record level rather than accelerate further. Across Tier-1 cities, primary housing sales were worth approximately ₹3.63 lakh crore in H1’26, broadly flat compared with H1’25.
However, the story changes when volumes and supply are considered together.
According to the India Housing Report, September 2026, prepared by CRE Matrix and the National Association of REALTORS® (NAR), around 2.58 lakh homes were sold across India’s Tier-1 cities in H1 2026, marking a 2% year-on-year decline. In contrast, developers launched nearly 2.98 lakh units, a 7% increase over H1 2025. With launches outpacing sales, new housing supply is currently running ahead of absorption.
At the same time, the geography of housing demand is shifting. MMR overtook NCR to become India’s largest housing market, while Bengaluru recorded the strongest growth among the large markets.
How Did India’s Housing Market Perform in H1 2026?
Primary housing sales across India’s Tier-1 cities stood at approximately ₹3,63,500 crore in H1’26.
This was almost unchanged from the H1’25 record, with sales value declining by only 0.3%.
However, volumes softened.
Around 2,57,600 homes were sold in H1’26, down approximately 2% from H1’25. With fewer homes sold but overall sales value remaining stable, the market is increasingly being supported by pricing and a higher-value sales mix.
The average ticket size stood at ₹1.41 crore, rising only around 2% year-on-year. This was the slowest increase in three years, suggesting that the earlier rapid premiumisation cycle is beginning to moderate.
MMR overtakes NCR as India’s largest housing market
The biggest change was geographical.
MMR accounted for 26% of Pan-India housing sales value in H1’26, overtaking NCR at 19%.
Primary housing sales in MMR were worth approximately ₹93,800 crore, up around 8% year-on-year. Volumes also increased by around 9%, making the growth largely volume-led rather than dependent on higher ticket sizes.
MMR sold approximately 83,600 homes, while its average ticket size remained broadly stable at ₹1.12 crore.
This makes MMR an important exception to the broader trend of value being sustained through pricing. Here, more homes were sold at relatively stable ticket sizes.
Bengaluru records the strongest growth among large markets
Bengaluru was another standout market in H1’26.
Housing sales value increased 25% year-on-year to ₹60,875 crore, the strongest growth among the large markets covered in the report.
Volumes increased around 7% to approximately 34,600 units, while the average ticket size rose around 17% to ₹1.76 crore.
The ₹2–5 crore segment accounted for 41% of Bengaluru’s housing sales value, up from 32% a year earlier.
Launches also increased around 22% to nearly 47,700 units, keeping the city’s future supply pipeline well stocked.
Is housing supply running ahead of demand?
Yes, the H1’26 numbers show a clear gap between launches and sales volumes.
Developers launched approximately 2,98,400 units during H1’26, up around 7% year-on-year and 18% compared with H2’25.
At the same time, only around 2,57,600 primary homes were sold, down approximately 2% year-on-year.
The result is a market where new supply is running ahead of absorption.
H1’26 also recorded the strongest half-year of launches since H1’24. The increase in supply suggests that developers are continuing to replenish their pipelines even as sales volumes have stopped growing at the pace seen earlier.
What is happening across MMR’s major housing markets?
MMR’s overall growth is being supported by different market dynamics across its sub-markets.
Mumbai: Higher prices drive sales value
Mumbai recorded housing sales worth approximately ₹58,362 crore, up around 4% year-on-year.
Volumes remained broadly flat at around 24,500 units, while the average ticket size increased around 4% to a record ₹2.38 crore.
The ₹5 crore-plus segment accounted for 40% of sales value, up from 38%.
Supply also reopened sharply, with launches increasing around 40% to approximately 22,400 units.
Thane + Palghar: Volume-led growth
Thane and Palghar recorded approximately ₹23,052 crore in primary housing sales, up around 10%.
Around 41,700 homes were sold, also up approximately 10%, while the average ticket size remained stable at ₹0.55 crore.
The sub-₹1 crore segment still accounted for 56% of sales value, although its share declined from 58%.
Launches fell around 5% to approximately 38,300 units.
Navi Mumbai + Raigad: Fastest-growing MMR pocket
Navi Mumbai and Raigad recorded the fastest value growth among the markets covered, with sales value rising approximately 29% to ₹12,292 crore.
Volumes increased around 20% to approximately 17,300 units, while the average ticket size rose 8% to ₹0.71 crore.
Launches increased another 29% to approximately 25,800 units, a new high for the region.
The ₹2–5 crore segment increased its share of sales value from 14% to 20%, while the sub-₹1 crore segment declined to 46%.
What happened to NCR housing sales?
NCR saw a sharp correction after being the previous year’s growth engine.
Sales value fell approximately 24% to ₹68,217 crore in H1’26, while units sold declined around 9% to approximately 24,600.
The average ticket size dropped around 16% to ₹2.77 crore, after reaching ₹3.31 crore in H1’25.
At the same time, launches increased around 10% to nearly 35,000 units, the highest half-year level in the series.
The ₹5 crore-plus segment accounted for 45% of sales value, down from 51%, while the ₹2–5 crore segment gained share.
What happened in Gurugram?
Gurugram experienced an even sharper reset.
Sales value declined around 33% to ₹37,726 crore, while volumes remained broadly stable at approximately 12,000 units.
The average ticket size fell about 32% to ₹3.15 crore, down from the H1’25 peak of ₹4.65 crore.
The ₹5 crore-plus segment’s share of value declined from 66% to 52%, while the ₹2–5 crore segment increased to 39%.
Launches edged up around 4% to approximately 12,800 units, keeping supply ahead of the softer value pool.
Which other markets stood out in H1 2026?
The housing market was not moving in one direction. Individual cities showed distinctly different combinations of volume, pricing, and supply.
Pune recorded sales of approximately ₹36,025 crore, up 4%, despite a 5% decline in volumes. Its average ticket size rose 9% to ₹0.83 crore, while launches fell 10% to around 34,200 units.
Noida recorded approximately ₹21,918 crore in sales, up 7%, even though volumes declined around 7%. Its average ticket size increased 15% to ₹2.78 crore, while launches dropped 38% to around 7,800 units.
Hyderabad remained broadly flat in value at approximately ₹56,966 crore, despite an 11% decline in volumes. Its average ticket size increased 13% to ₹2.02 crore, while launches jumped 22% to around 46,900 units.
Ahmedabad saw sales value decline 9% to approximately ₹24,876 crore, with volumes falling 13%. Its average ticket size nevertheless increased 4% to ₹1.08 crore, while launches rose 5%.
Chennai recorded a 16% increase in sales value to approximately ₹13,722 crore, even as volumes declined 12%. Its average ticket size jumped 32% to ₹1.31 crore, while launches fell 33%.
Kolkata recorded approximately ₹9,046 crore in sales, around 3% lower than H1’25. Volumes declined 12%, while the average ticket size increased 11% to ₹0.92 crore. Launches declined 16%.
What does H1 2026 tell us about India’s housing market?
H1’26 marks a shift from a market driven primarily by rising values to one where volume, pricing, and supply are diverging across cities.
The divergence across markets highlights how differently India’s residential landscape is evolving. While some cities are seeing broader-based demand, others are experiencing a greater influence of pricing, changing buyer preferences, or expanding supply.
This makes it increasingly important to look beyond headline growth and understand the underlying market dynamics shaping each city. For developers, investors, and real estate stakeholders, CRE Matrix data provides a granular view of these shifts across markets and price segments.
Sales, launches, ticket sizes, and price bands tell different stories. Get the data to see where housing demand is moving.
Media Mentions
- The Financial World: Gurugram luxury housing boom cools as sales value falls 33%.
