India’s housing market is splitting by city. H1 2026 data from Knight Frank reported 171,471 home sales across the top eight cities, up only 1% from a year earlier, but Mumbai remained the largest market with 47,355 sales while Bengaluru grew fastest and NCR declined.
Mumbai Absorbs More Supply Without Building Inventory
Mumbai Metropolitan Region sales were broadly stable, but launches rose 8% to 49,161 units and unsold inventory still fell 4%. That combination points to durable end-user demand despite higher prices. It also helps explain why office leasing in Mumbai remained strong, with Powai seeing a major JP Morgan lease that reinforces employment-driven housing demand.
Bengaluru Is The Growth Engine
Bengaluru recorded 27,968 housing sales in the first half, up 5%, with launches also increasing. The city’s Global Capability Centre expansion continues to support demand across apartment categories, and average residential prices rose about 9% year on year. The most active price band has shifted toward INR1 crore to INR2 crore homes.
NCR Shows The Premium Trap
NCR sales fell 7% as affordable inventory in key Gurugram, Noida and Delhi micro-markets became scarce and more stock moved into the INR2 crore-and-above segment. The region still has price growth, but it is excluding many end-users who cannot stretch to premium tickets.
What To Watch Next
India’s second half should remain city-led. Mumbai and Bengaluru have the employment and absorption base to support launches, while NCR developers may need more mid-income product if they want volumes to recover. Track India real estate daily: For current listings, price trends, and market data, visit indiahousingmarket.com.
