Signs of recovery are being observed in the country's key real estate market. Between July and September 2026, over one hundred thousand residential units were sold in seven major cities. At the same time, the number of new projects and the overall supply in the market increased during this period. This situation presents a challenge for the market in maintaining a balance between supply and demand. For potential buyers, this means having more choice, but constantly rising prices put pressure on budgets.
According to the 'ANAROCK' report on the housing market in the third quarter of 2026, approximately 100,200 apartments were sold in the seven main cities. This figure exceeds the sales volume of the previous quarter by 10% and is 3% higher than in the same period last year. The total value of all sold homes amounted to approximately 1.55 lakh crore rupees.
Return of Buyers Stimulates Sales
The report indicates that many buyers who had postponed their purchase decision in the previous quarter returned to the market in the third quarter, giving an impetus to sales in the seven key cities. Nevertheless, the sales growth of only 3% year-on-year suggests that the market is in a stage of improvement, but calling it a significant boom is premature.
Increase in Affordable Housing Supply
In the third quarter, developers also increased the pace of launching new projects: about 114,300 new homes were released onto the market, which is 18% more than in the same quarter last year. Changes also occurred in the price structure of new homes. The share of housing priced under 40 lakh rupees increased to 14%, while the share of homes priced above 2.5 crore rupees decreased from 22% to 14%. This suggests that developers have begun to consider the needs of buyers with smaller budgets, in addition to the premium segment. However, the real benefit for ordinary buyers will depend on the actual availability and location of these homes.
Rising Housing Prices Amid Increased Supply
Despite the increase in new housing supply, property prices are not showing a decline. According to ANAROCK, the average price of a home in the seven major cities reached 9,714 rupees per square foot. This represents a 7% increase compared to last year and a 1% increase compared to the previous quarter. Thus, buyers are presented with more options, but the cost of acquiring housing is increasing. Therefore, buyers should make decisions based not only on advertised prices but also by including costs for registration, taxes, finishing, and mortgage interest in their budget.
Growth in Unsold Real Estate Inventory, Greatest Pressure in Hyderabad
According to the report, the total number of homes available for sale in the seven cities increased by 12% year-on-year, reaching approximately 630,600 units. Meanwhile, the overall surplus inventory (inventory overhang) remains at about 19 months. This means that if current sales rates are maintained, selling the existing stock may take about 19 months. Hyderabad stands out among the others: the inventory overhang there is 28 months, implying that at the current sales speed, housing may sell for about 28 months. This situation requires more attention to sales rates compared to the rate of new housing input. Although a large inventory does not guarantee a drop in prices across all projects, in such markets, buyers may have the opportunity to negotiate better terms with developers by comparing the prices and features of different projects.