India's housing sales dip below 1L mark: What's the reason?
What's the story
India's housing market has witnessed a major slowdown, with sales across nine major cities falling below the one lakh mark for the first time in 18 quarters. According to PropEquity, a real estate research firm, sales fell by 13% year-on-year (YoY) to 98,761 units during January-March. The decline is mainly attributed to weak supply and global uncertainties such as the ongoing West Asia conflict.
Outliers
Bengaluru, Delhi-NCR bucked the trend in Q1 2026
Despite the overall slowdown, Bengaluru and Delhi-NCR stood out in the first quarter of 2026. Bengaluru retained its position as the top-selling market with 17,991 units sold, a 3% YoY increase. Delhi-NCR also saw a sales increase of 13% YoY to 12,141 units. However, other major cities such as Pune (down by 25%), Thane (24%), and Mumbai (20%) witnessed significant declines in housing sales during this period.
Supply issues
Sales affected by sharp drop in new launches
The decline in housing sales is largely due to a drop in new launches, which fell by 19% YoY to 92,411 units. The sharp drop across most cities has limited inventory and directly affected sales volumes. PropEquity CEO Samir Jasuja said that the reduction is mainly due to low supply across most cities with nearly 22,000 fewer units supplied in Q1 2026 compared to the same period last year.
Market trends
Housing market entering consolidation phase
Analysts have suggested that the housing market might be entering a phase of consolidation after a multi-quarter growth cycle. With the launches slowing and inventory tightening in many cities, sales momentum will likely depend on fresh supply pipelines and pricing strategies.