Mumbai: Bengaluru emerged as the strongest-performing residential market among India’s top eight cities in the first quarter of 2026, recording the highest year-on-year growth in housing prices, according to PropTiger’s Real INSIGHT – Residential Q1 2026 report.
The report stated that Bengaluru achieved a combination of strong sales growth, near-parity between supply and sales, and the highest annual housing price appreciation among major residential markets during the quarter.
According to the report, Bengaluru’s average housing price increased by 24 per cent year-on-year and 3 per cent quarter-on-quarter to Rs 9,785 per sq. ft. in Q1 2026. The city recorded the second-highest average housing price after Mumbai Metropolitan Region (MMR), where average prices stood at Rs 15,120 per sq. ft.
The report noted that Bengaluru’s annual price growth accelerated from 14 per cent in Q1 2025 to 24 per cent in Q1 2026 despite moderation across several other markets.
“The GCC and startup employment engine continues to prove more durable than conventional IT hiring cycles, providing Bengaluru with a structurally differentiated demand base that is less susceptible to sector-specific disruption,” the report stated.
Across India’s top eight residential markets — Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, MMR, Pune and Delhi-NCR — average housing prices increased between 3 per cent and 24 per cent year-on-year during Q1 2026.
On a quarter-on-quarter basis, average housing prices increased between 1 per cent and 9 per cent.
“Property prices across top eight cities sustained a broad-based upcycle in Q1 2026 registering positive year-on-year appreciation underscoring the depth and resilience of underlying demand,” the report said.
Delhi-NCR recorded an 18 per cent annual increase in average housing prices to Rs 9,534 per sq. ft. in Q1 2026. However, this represented a moderation from the 43 per cent annual growth recorded in Q1 2025.
According to the report:
- Ahmedabad: Rs 4,949 per sq. ft. (8% YoY)
- MMR: Rs 15,120 per sq. ft. (20% YoY)
- Pune: Rs 7,957 per sq. ft. (12% YoY)
- Delhi-NCR: Rs 9,534 per sq. ft. (18% YoY)
- Kolkata: Rs 6,222 per sq. ft. (7% YoY)
- Bengaluru: Rs 9,785 per sq. ft. (24% YoY)
- Chennai: Rs 7,416 per sq. ft. (3% YoY)
- Hyderabad: Rs 8,240 per sq. ft. (11% YoY)
The weighted average housing price across the top eight cities crossed Rs 10,050 per sq. ft. during the quarter, marking the first time this level has been achieved.
Commenting on the market, Prakash Tejwani, CEO of PropTiger, said, “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.”
The report also highlighted differences in inventory dynamics across housing segments.
According to PropTiger, a significant portion of new launches in Mumbai MMR, Bengaluru and Delhi-NCR remained concentrated within premium and upper mid-income categories.
“A disproportionate share of new launches in Q1 2026 – particularly in Mumbai MMR, Bengaluru, and Delhi NCR – remained concentrated in the premium and upper mid-income segments. Unsold stock in higher ticket-size categories is therefore expected to exhibit slower absorption cycles, given longer buyer decision timelines and lower transactional liquidity compared to mass-market housing.”
The report stated that this trend does not indicate broader market stress but highlights the need for pricing discipline and targeted demand conversion strategies in premium housing segments.
It further noted, “Overall, the combination of near-flat supply growth, stable absorption, and continued price appreciation across all eight cities indicates that inventory levels remained well managed through Q1 2026. Developers demonstrated a preference for maintaining price integrity and project viability over volume-driven liquidation – a posture that is consistent with a maturing market operating within a broadly comfortable supply-demand equilibrium.”
Regarding future market conditions, the report said that the remainder of 2026 would depend on whether the current equilibrium evolves into a new growth cycle or remains at existing volume levels.
The report added that balancing premium inventory absorption with affordability in the mid-income segment would be one of the key challenges during the second half of 2026.
Housing sales across India’s top eight cities declined by 2.2 per cent year-on-year but increased 1 per cent quarter-on-quarter to 95,973 units during Q1 2026.
Also Read: Blockchain Use in Land Records: How Technology Is Transforming Property Ownership in India
New supply declined marginally by 0.1 per cent year-on-year and increased 1.1 per cent quarter-on-quarter to 93,065 units.
Bengaluru recorded a 33 per cent increase in housing sales, while Chennai rose 43 per cent, Hyderabad 25 per cent and Delhi-NCR 11 per cent. MMR remained the largest residential market by sales volume with 26,116 units sold, followed by Bengaluru with 15,603 units.
On the supply side, Ahmedabad recorded 96 per cent growth, Delhi-NCR 29 per cent, Hyderabad 23 per cent, Chennai 4 per cent and Pune 2 per cent. MMR remained the highest supplied market with 27,189 units launched, followed by Bengaluru with 15,806 units.
