Limited availability of new residential projects is being cited as a key factor behind the dip.

India Housing Sales Fall 13% in Q1 2026 as New Supply Drops Across Major Cities

India’s housing market saw a noticeable slowdown in the first quarter of 2026, with sales across nine major cities dropping to 98,761 units, a 13 percent decline compared to the same period last year. The fall brings quarterly sales below the 100,000-unit mark for the first time in 18 quarters, according to PropEquity.

Limited availability of new residential projects is being cited as a key factor behind the dip. New supply during the quarter fell 19 percent from last year, totaling 92,411 units, while launches were also down eight percent from the previous quarter. Analysts note that geopolitical tensions in West Asia may have further influenced buyer sentiment.

Despite the overall decline, certain markets showed resilience. Bengaluru’s housing sales increased three percent to 17,991 units, while Delhi-NCR recorded a 13 percent rise to 12,141 units. Other cities experienced sharper reductions: Pune sales dropped 25 percent to 16,144 units, Thane fell 24 percent to 15,959 units, and Mumbai saw a 20 percent decrease to 9,186 units. Hyderabad and Chennai also recorded declines of 16 percent and four percent, respectively, while Kolkata fell eight percent to 3,872 units.

PropEquity’s report highlights that the decline in sales largely mirrors the shortfall in new project supply, which was about 22,000 units lower than the same quarter last year.