India’s residential market shows resilience with 3 percent H1 2026 growth amid temporary quarterly dip: JLL

Mumbai, July 21: India’s residential market demonstrated resilience in H1 2026 (January-June), with sales volume increasing 3% to 138,382 units compared to the same period last year, reflecting sustained buyer confidence and robust market fundamentals. While quarterly sales moderated by 4% in Q2 2026 compared to Q1, this temporary softness does not diminish the sector’s overall positive trajectory, which continues to be supported by strong urbanization trends, improving infrastructure, and evolving lifestyle aspirations. 

The H1 performance was particularly encouraging across key markets. Bengaluru led with a 16% Y-o-Y increase in sales, followed by Chennai’s impressive 27% growth, demonstrating the strength of these markets despite broader headwinds. The four major markets of Bengaluru, Mumbai, Pune, and Delhi NCR collectively represented around 76% of total H1 2026 sales, reinforcing their position as India’s primary residential hubs. 

The temporary quarterly moderation in Q2 2026 can be attributed to seasonal factors, property price recalibration, and buyers adopting a more considered approach to purchase decisions. However, the positive half-yearly comparison with H1 2025 underscores the market’s underlying strength and ability to maintain growth momentum despite these short-term fluctuations.

The housing sector’s resilience is further evidenced by continued buyer activity across diverse price segments. While market dynamics have evolved, with buyers increasingly prioritizing quality, location, and amenities, the fundamental demand drivers remain intact. The sustained preference for projects from established developers offering superior specifications, prime locations, and assured delivery timelines reflects the maturity of India’s homebuying audience. 

Positive 3% Y-o-Y growth during H1 2026 reflects market resilience

Source: Real Estate Intelligence Service (REIS), JLL Research

Note: Mumbai includes Mumbai city, Mumbai suburbs, Thane city, and Navi Mumbai; Delhi NCR includes Delhi, Gurugram, Noida, Greater Noida, Ghaziabad, Faridabad and Sohna.

Data includes only apartments. Rowhouses, villas, and plotted developments are excluded from our analysis. 

“The H1 2026 performance underscores the maturity of India’s residential sector, with 138,382 units sold representing a solid 3% Y-o-Y growth despite temporary quarterly moderation. The fundamentals remain compelling, sustained urbanization, infrastructure development, and rising aspirations continue to drive homebuying decisions. What is particularly encouraging is the shift toward quality and quantum, with the INR 1-3 crore segment surging 58% Y-o-Y, demonstrating that buyers are increasingly willing to invest in well-located, premium developments that offer long-term value. The 9% increase in new launches to 168,507 units reflects strong developer confidence,” said Siva Krishnan, Senior Managing Director (Chennai & Coimbatore), Head – Residential Services, India, JLL.

“As property prices stabilize and buyers adjust to current market conditions, we expect sales momentum to improve in subsequent quarters. Ongoing infrastructure investments, expanding metro networks, improving connectivity, and development of new growth corridors, combined with enhanced access to housing finance and rising income levels, will continue to support homebuying decisions across diverse segments.” he added.

Market evolution reflects changing buyer preferences and aspirations

Source: Real Estate Intelligence Service (REIS), JLL Research

Robust launch activity signals sustained developer confidence and market optimism

Source: Real Estate Intelligence Service (REIS), JLL Research

H1 2026 witnessed strong launch momentum with 168,507 new homes entering the market, representing a healthy 9% increase compared to H1 2025. This robust supply addition reflects developer confidence in India’s residential market fundamentals, readiness to capitalize on sustained demand and their commitment to meeting evolving homebuyer needs. Bengaluru led with an exceptional 41% Y-o-Y increase in launches, followed by Mumbai’s 18% growth and Delhi NCR’s 14% expansion. The temporary quarterly slowdown in launch activity reflects developers’ strategic approach to project phasing and their focus on ensuring optimal market absorption. Major markets continue to attract significant development activity, with Bengaluru, Mumbai, and Delhi NCR leading the way in new supply additions. 

Property values maintain upward trajectory across key markets

Capital values across India’s seven major cities continued to appreciate during H1 2026, supported by strong market fundamentals, elevated construction costs, and consistent buyer interest. Home prices across India’s seven major cities continued to climb in Q2 2026, with yearly increases between 6% and 15%. Bengaluru saw the highest jump at 15%, followed by Chennai and Kolkata at 13%. This widespread price growth across all major markets stems from higher building costs and consistent buyer demand, which has encouraged developers to launch more premium housing options. 

Outlook: Strong fundamentals position sector for sustained growth ahead

India’s residential market is well-positioned for continued expansion, underpinned by favourable macroeconomic conditions, rapid urbanization, and rising household incomes. The temporary quarterly moderation observed in Q2 2026 represents a natural recalibration phase rather than a fundamental shift in market dynamics. As property prices stabilize and buyers adjust to current market conditions, sales momentum is expected to improve in subsequent quarters. The robust pipeline of quality projects across major markets will continue to attract discerning homebuyers seeking well-located, amenity-rich developments. Ongoing infrastructure investments, improving connectivity, expanding metro networks, and development of new growth corridors will further strengthen the residential market‘s prospects. Enhanced access to housing finance, coupled with stable interest rates and rising income levels, will support homebuying decisions across diverse buyer segments. The sector’s positive half-yearly performance, strong developer confidence reflected in launch activity, and sustained demand for quality housing position India’s residential market for continued growth.