Punjab Newsline | New Delhi
India’s real estate market recorded strong growth during the first half of calendar year 2026 (H1CY26), driven by sustained demand for premium and luxury housing, according to a recent report by brokerage firm Nuvama. The report indicates that buyer sentiment remains resilient despite rising borrowing costs, with both property sales value and prices showing significant growth across major cities.
The report said that the total value of residential sales across India increased by 11% year-on-year in H1CY26. In the second quarter (Q2CY26), sales value rose 9%, while June 2026 alone witnessed a 5% annual increase and a 6% month-on-month rise in property sales value. These figures suggest that both investors and end-users continue to actively participate in the housing market.
Bengaluru and Chennai Drive Demand
Southern cities delivered the strongest performance during the period. Bengaluru recorded a 37% jump in demand value, while Chennai posted a 26% increase compared with the same period last year. Other major markets such as the Mumbai Metropolitan Region (MMR), Pune, and Kolkata also registered healthy growth of around 13%.
In terms of sales volume, Bengaluru led the country with a 22% increase, whereas other key cities reported growth ranging between 4% and 9%. In contrast, the National Capital Region (NCR) showed signs of weakness, with sales value declining by 7% and sales volume dropping sharply by 18%.
New Project Launches Show Mixed Trends
The supply side presented a mixed picture across regions. Overall housing supply, measured through new project launches, increased 9% in H1CY26. MMR, Bengaluru, Kolkata, and Hyderabad saw new launches rise between 10% and 43%. However, NCR and Chennai experienced a decline of 21% to 34% in fresh project launches.
With strong growth in both demand and supply, Bengaluru emerged as the best-performing residential market among India’s major cities.
Unsold Inventory Remains Stable
At the national level, unsold housing inventory remained stable at around 20 months. Pune reported the healthiest inventory position with only 14 months of stock, while most other major cities ranged between 17 and 22 months. Hyderabad had the highest unsold inventory level at 29 months, indicating relatively slower absorption compared with its recent supply additions.
Home Prices Continue to Rise
The report also highlighted a broad-based increase in residential property prices during Q2CY26, supported by strong demand in the luxury and premium segments. Chennai recorded the highest annual price growth of 20%, while other major cities witnessed price appreciation in the range of 4% to 8%.
Outlook for Real Estate and Realty Stocks
According to Nuvama, the future performance of real estate companies and their stocks will depend largely on volume growth, or the number of homes sold, rather than price increases alone. The report advised developers to gradually shift their focus from the luxury segment toward mid-income and premium housing, where demand is expected to remain broader and more sustainable.
Maintaining affordability through controlled pricing and reasonable ticket sizes will be critical for sustaining sales momentum. The report expects continued challenges in the NCR market, particularly in the ₹5 crore-₹10 crore housing segment, while Bengaluru and Chennai are seen as the strongest markets for sustained long-term growth.
