Activity in the real estate market is increasing ahead of the holidays. According to ANAROCK Research data, approximately 122 thousand residential units were sold in the seven largest cities during the third quarter of 2026, which is 3% more compared to the same period last year. Furthermore, sales increased by 10% compared to the previous quarter (April-June 2026).
Hyderabad showed the largest sales growth during this period, with sales increasing by 15%. The MMR and Bangalore regions together accounted for about 48% of the total sales volume. Despite rising costs and differences in demand between cities, sales in the residential sector showed some improvement compared to the sluggishness of the previous quarter. The total value of sold homes increased by approximately 2%, reaching 155 billion rupees, compared to about 152 billion rupees a year earlier.
The MMR region led in sales, realizing about 31,750 homes, while approximately 16,670 units were sold in Bangalore. These two regions accounted for about 48% of the total sales in the seven key cities. Analysis of other cities showed that housing sales in Hyderabad grew by 15%, totaling 12,970. In Bangalore, sales increased by 12% to 16,670 units, while in Pune, sales decreased by 6% year-on-year to 15,690, NCR recorded a decrease of 1% to 13,765, in Chennai sales decreased by 10% to 5,395, and in Kolkata, sales fell by 4% to 3,980 units.
During the third quarter, developers also increased the volume of new housing supply. Approximately 114,320 new homes were launched in the seven largest cities, compared to about 96,690 units launched in the third quarter of 2025, representing an 18% year-on-year growth in new supply. Quarter-on-quarter, compared to 105,995 new homes in April-June 2026, new launches grew by 8%. The MMR, Pune, Bangalore, and Hyderabad regions collectively accounted for about 81% of the total new supply.
Premium segment dominance continues! About 18,950 new homes were launched in Hyderabad, 97% of which belong to the segment valued above 80 lakh rupees. In Bangalore, out of 17,720 launched homes, about 81% of new supplies are in the price range of 80 lakh to 2.5 crore rupees. In NCR, about 10,900 new homes were launched, with over 34% of new supplies exceeding 2.5 crore rupees. However, in MMR, about 37,500 new homes were launched, of which over 51% of new supplies are priced below 80 lakh rupees. Nevertheless, overall, 34% of new supplies were for homes valued between 80 lakh and 1.5 crore rupees, followed by homes in the price range of 1.5 crore to 2.5 crore rupees at 24%. Homes valued between 40 lakh and 80 lakh rupees accounted for 17%, and affordable housing valued under 40 lakh rupees was 14%.
Parallel to the increase in sales, the available housing stock in the market also grew. The total housing stock in the seven largest cities increased by 12% year-on-year, reaching approximately 630,590 units. At the end of the third quarter of 2025, this figure was about 561,760 units, and at the end of the second quarter of 2026, it was about 616,500 units.
The average housing cost in the seven largest cities increased by 7% year-on-year. In the third quarter of 2025, the average price was about 9,105 rupees per square foot, and in the third quarter of 2026, it rose to approximately 9,714 rupees per square foot. The largest annual increase in average price was recorded in NCR at 12%, followed by Bangalore with an 8% increase. However, quarter-on-quarter, the average price in the seven largest cities only grew by 1%.
According to Anuja Puri, chairman of the ANAROCK group, the upcoming festive season may continue the momentum observed in the third quarter. Nevertheless, buyers may make considered decisions due to rising housing prices and concerns about affordability.