India's residential real estate market recorded near-flat growth in the January–March quarter of 2026, with sales volumes dipping year-on-year even as property prices hit a historic milestone — crossing ₹10,000 per square foot for the first time.
This is the conclusion of the RealInsight Residential report, prepared by the real estate consultants PropTiger (Aurum PropTech), basing on a survey of eight major cities: Mumbai Metropolitan Region (MMR), Bengaluru, Pune, Hyderabad, Delhi NCR, Chennai, Ahmedabad, and Kolkata.
Market Stalls at High Volume, Growth Slows
The quarter saw 95,973 residential units sold and 93,065 new units launched across the top eight cities — figures that are nearly identical to the previous quarter (Q4 2025) and marginally lower than the same period last year. Sales fell 2.2% year-on-year, while new supply was virtually flat at -0.1%.
While this has been describe this as "healthy normalisation, not structural weakening", the report admits that there is absence of meaningful volume growth, coming on the back of years of post-pandemic momentum. It signals that the market's easy expansion phase is over.
Meanwhile, the weighted average residential price across the eight cities reached ₹10,050 per square foot in Q1 2026, the first time the figure has crossed the five-digit threshold, the report notes, pointing out that a cut in GST on cement — from 28% to 18%, effective September 2025 — has not translated into lower prices for buyers. The cost relief has been absorbed by developers as a margin buffer. "No significant end-buyer price reduction has been observed in the market so far," the report states.
Year-on-year price increases ranged from 3.4% in Chennai to a sharp 24.2% in Bengaluru, with Pune recording the steepest quarterly jump at 9%.
Affordability Under Pressure
Rising prices are squeezing middle-income buyers in most cities. The report flags that property price escalation has, in several markets, outpaced growth in employment incomes.
Pune's sharp 9% price jump in a single quarter is described as "an early indicator of potential affordability friction ahead." The city is nearing the ₹8,000 per square foot mark — a psychological threshold the report says could test buyer sentiment in the mid-income segment.
"Navigating the tension between premium inventory absorption and mid-income affordability will be the defining challenge of H2 2026," the report beliieves.
A growing share of new launches in Q1 2026 — particularly in Mumbai MMR, Bengaluru, and Delhi NCR — is concentrated in the premium and upper mid-income segments. The report warns that unsold stock in higher-ticket categories faces slower absorption, owing to longer buyer decision cycles and lower transactional liquidity compared to mass-market housing.
"This does not signal systemic stress," the report notes, "but it does underscore the need for pricing discipline and targeted demand conversion in the luxury and near-luxury segments."
Bengaluru Surges; Kolkata and Ahmedabad Struggle
City-level performance was sharply divergent.
Bengaluru emerged as the standout performer, with sales rising 12% quarter-on-quarter and 33% year-on-year, driven by expansion in Global Capability Centres (GCCs) and the startup ecosystem. The city also recorded the highest year-on-year price appreciation nationally at 24.2%.
At the other end, Kolkata saw sales crash 24% both year-on-year and quarter-on-quarter. Election-cycle caution is cited as the primary reason, with buyers and developers alike holding back. The city's recovery is now pegged to two infrastructure projects — the Joka–Esplanade Metro Phase 2 and the New Garia–Airport metro line — both expected to complete in the second half of 2026.
Ahmedabad, while showing sequential recovery in Q1, recorded a steep 23.4% year-on-year fall in sales, as demand normalised following a strong 2024 cycle.
Mumbai MMR, the largest market by both volume and value, saw sales fall 14.9% year-on-year to 26,116 units, even as new supply rebounded 10% quarter-on-quarter. Property prices in MMR rose 20% year-on-year to ₹15,120 per square foot — the highest among all eight cities — raising concerns about how much further buyers can stretch.
The report identifies global macroeconomic uncertainty — specifically a potential slowdown in the United States and its knock-on effect on IT outsourcing — as a contingent risk to Bengaluru and Hyderabad.
Both cities have seen exceptional year-on-year sales growth — 33% and 24.9% respectively — built substantially on IT sector employment. "Any sustained softening in tech hiring could moderate the exceptional YoY sales growth rates these cities recorded in Q1 2026," the report warns.
The report describes the Q2 2026 outlook as one of "cautious optimism." A post-election demand recovery in Kolkata, a supply rebound in Chennai following pre-election slowdown, and continued momentum in Bengaluru and Delhi NCR are cited as positive signals.
The festive season in Q3 2026 will be a critical test. Developers across all markets are expected to align new launches with the festive window. Buyer response to already-elevated prices, the report says, will determine whether the market sustains its appreciation trajectory or moves into consolidation.
Yet, the report concludes, "The market is not weakening; it is maturing... And a maturing market, by definition, rewards precision over volume."
I think the idea of putting a money value to organic farming and attempting to capture the scope of such farming through it might be flawed -- I have a small patch and have learnt about edible weeds, and now pluck up quite a few things I can cook that I do not even cultivate. I also forage, and had a mushroom and toast breakfast this morning from mushroom I got in the neighbourhood.
ReplyDeleteOrganic cultivation requires a large number of farmers with small land holdings and is especially adapted to our kind of farming. But it would put a lot of Big Agri producers out of business, and there are vested interests now in continuing to supply the products that farmers feel they cannot grow crops without.
In Kerala, I have seen people use RoundUp, even though they know it is responsible for cancer -- labour is expensive, and weeding by hiring people is more expensive. It is easier to get someone to spray this poison and kill weeds. The problem is that earlier, most farms also had animals. These days, farmers don't always have animals that could eat the grass.
I was reading Albert Howard, and it seems to me that in farming, our country is going backwards at a tremendous pace. Please convey my thanks to this author.