New Delhi [India], May 16 (ANI): India's residential real estate market entered a more stable and demand-driven phase in the January-March quarter of 2026, with housing sales and new launches remaining largely steady across major cities even as property prices continued to rise, according to a quarterly residential market report by PropTiger.

The report showed that nearly 96,000 homes were sold across eight major cities during Q1 2026, while new housing supply remained almost unchanged from a year ago, indicating that the market was moving away from the rapid post-pandemic expansion phase toward more balanced growth.

According to the Real InsightT - Residential Q1 2026 report released by PropTiger, housing sales across the top eight cities stood at 95,973 units during the quarter, down 2.2 per cent year-on-year but up 1 per cent from the previous quarter. New launches stood at 93,065 units, almost flat compared to the same period last year.

'The Indian residential market has transitioned into a structurally more disciplined phase. Growth today is increasingly being driven by demand quality, inventory discipline, and buyer confidence rather than speculative expansion,' said PropTiger CEO Prakash Tejwani.

The report said average housing prices across major cities crossed the Rs 10,000 per square foot mark for the first time, reaching Rs 10,050 per square foot during the quarter, reflecting continued demand for premium housing projects.

Among cities, Bengaluru emerged as the strongest-performing residential market, with housing sales rising 33 per cent year-on-year to 15,603 units. The report attributed the growth to continued hiring by Global Capability Centres (GCCs) and startup companies.

'Bengaluru is Q1 2026's standout performer across all three dimensions,' the report said, adding that the city's employment ecosystem was 'providing Bengaluru with a structurally differentiated demand base.'

Mumbai Metropolitan Region (MMR) remained the country's largest housing market by both sales and value despite moderation in annual growth. Housing sales in MMR stood at 26,116 units during the quarter, down 14.9 per cent year-on-year, while new supply declined 13.2 per cent. However, sequential trends remained positive, with supply rising 10 per cent quarter-on-quarter and sales increasing nearly 2 per cent.

The report said the decline in MMR reflected 'base-effect normalization against an exceptional 2025 -- not a loss of demand momentum.'

Hyderabad also recorded strong annual growth, with sales rising nearly 25 per cent year-on-year to 13,297 units, while Delhi-NCR posted 11.4 per cent growth in housing sales and 17.6 per cent rise in prices.

Meanwhile, Chennai saw housing sales rise 43.3 per cent year-on-year, driven largely by buyers purchasing existing unsold inventory rather than newly launched homes.

The report noted that rising property prices could become a challenge for buyers in the coming quarters, particularly in cities where income growth has not kept pace with housing prices.

'Affordability pressure is intensifying across most top-eight markets,' the report said, adding that sharp price increases in cities such as Bengaluru and Pune could test buyer affordability going forward.

At the same time, the report said stable interest rates, infrastructure expansion, and improving digital property registration systems were continuing to support buyer confidence in the residential market. (ANI)