New Delhi: India’s residential real estate market achieved a significant milestone in the first quarter of 2026, with the weighted average housing price across the country’s top eight cities crossing the ₹10,000 per sq ft mark for the first time. Average residential prices reached ₹10,050 per sq ft during the January-March quarter, reflecting sustained demand and continued appreciation across major housing markets despite a moderation in sales activity.
According to the latest residential market data, housing prices increased across all major cities on an annual basis, highlighting the resilience of the sector amid changing market dynamics. The rise in property values comes at a time when developers are maintaining inventory discipline and buyers continue to show preference for premium and larger homes.
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Bengaluru emerged as the strongest-performing residential market among India’s leading cities during the quarter. Average housing prices in the city increased 24% year-on-year to ₹9,785 per sq ft, making it the fastest-growing market in the country. Industry experts attribute the growth to sustained demand from technology professionals, startup founders, Global Capability Centres (GCCs), and high-income homebuyers seeking premium residential properties.
Mumbai Metropolitan Region (MMR) retained its position as India’s most expensive housing market. Average residential prices in the region rose 20% year-on-year to ₹15,120 per sq ft in Q1 2026. Strong demand in premium and luxury housing segments, coupled with ongoing infrastructure development across key corridors, continued to support price growth in the country’s financial capital.
Delhi-NCR also recorded robust appreciation during the quarter. Average residential prices increased 18% year-on-year to ₹9,534 per sq ft, supported by strong demand across Gurugram, Noida, Greater Noida and the Dwarka Expressway corridor. Improved connectivity, expanding metro networks and growing corporate activity have continued to strengthen the region’s housing market.
Among other major cities, Pune registered a 12% annual increase in residential prices, with the average rate reaching ₹7,957 per sq ft. Hyderabad reported an 11% rise in prices to ₹8,240 per sq ft, while Ahmedabad and Kolkata recorded annual growth of 8% and 7%, respectively. Chennai witnessed a comparatively moderate increase of 3%, with average prices touching ₹7,416 per sq ft.
The price growth across cities occurred despite a slight decline in overall housing sales. Residential sales across the top eight cities stood at 95,973 units during Q1 2026, down 2.2% from the corresponding period last year. New housing supply remained largely stable at 93,065 units, indicating that developers are continuing to maintain a balanced approach toward project launches and inventory management.
Market observers believe the sector is gradually transitioning from a volume-driven growth cycle to a value-led phase, where pricing strength is increasingly supported by quality demand rather than speculative activity. The trend has become particularly visible in premium and luxury housing segments, which have continued to attract buyers despite rising property prices.
The crossing of the ₹10,000 per sq ft threshold is being viewed as a landmark moment for India’s residential real estate sector. It reflects the combined impact of infrastructure expansion, urbanisation, rising household incomes and growing preference for larger, lifestyle-oriented homes across key markets.
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Looking ahead, industry experts expect residential prices to remain firm through 2026, although the pace of appreciation may moderate compared to the sharp gains recorded over the past two years. Demand from end-users, infrastructure-led development and continued interest in premium housing are expected to remain the primary drivers of growth across India’s housing market.
With Bengaluru, Mumbai and Delhi-NCR leading the current cycle, the latest data underscores the continued strength of India’s residential sector and signals a shift toward a more mature, value-focused housing market.
