Housing sales across major urban markets moderated by 2.2% year-on-year in the first quarter of 2026, even as select southern markets continued to register demand-led growth. During the quarter, India’s residential real estate sector recorded 93,065 new housing unit launches and 95,973 unit sales across the country’s eight largest housing markets. On a sequential basis, supply increased by 1.1%, while sales rose by 1%, reflecting steady market momentum. On a year-on-year basis, new supply remained largely stable, posting a marginal decline of 0.1%, while sales witnessed a moderate slowdown. This moderation is being viewed as a phase of healthy market normalisation rather than a sign of structural weakness, as underlying demand conditions remain resilient. Performance across markets was mixed. While a few key cities reported an uptick in sales activity during the quarter, others experienced a decline, leading to an overall moderation in aggregate volumes. Despite this divergence, buyer interest remained firm in several southern markets, which emerged as the strongest contributors to incremental demand growth in Q1 2026. Price trends remained broadly positive across all major housing markets. Residential property values continued their upward trajectory, with all eight tracked cities recording year-on-year price appreciation, underscoring the depth of end-user demand and sustained confidence in the housing sector. One western market showed mild sequential moderation following a strong performance in the previous quarter, though it continued to post healthy annual price growth of over 8%, indicating consolidation rather than any correction. Year-on-year price appreciation varied significantly across markets, ranging from low single-digit growth in some southern cities to a sharp increase of over 24% in one technology-driven market, highlighting divergent local demand–supply dynamics. Notably, the weighted average residential price crossed the landmark level of Rs 10,050 per sq ft for the first time, marking a significant milestone for the Indian housing market. This reflects sustained price momentum supported by stable demand, controlled inventory levels, and steady new supply additions. Overall, the Q1 2026 data points to a housing market that is transitioning into a more balanced growth phase, characterised by moderated sales volumes, stable supply, and broad-based price appreciation across major urban centres.