India’s residential real estate sector maintained a stable growth trajectory in the first quarter of 2026, with leading urban centres continuing to dominate supply.
According to the latest Residential MarketBeat Report by Cushman & Wakefield, new housing launches across the country remained active, despite a cautious macroeconomic environment and evolving buyer preferences.
The report highlights that the top eight cities collectively recorded 75,283 new residential unit launches, reflecting a 2 per cent increase compared to the previous quarter and a modest 1 per cent year-on-year growth. This indicates a controlled yet consistent expansion in housing supply, signaling resilience in the sector.
A significant trend emerging from the report is the dominance of three major cities—Mumbai, Bengaluru, and Pune—which together accounted for nearly 60 per cent of all new residential launches during the quarter.
“The concentration of nearly 60% of new launches across Mumbai, Bengaluru and Pune highlights the sustained scale of development activity in these markets,” Shalin Raina, Managing Director, Residential Services at Cushman & Wakefield, said. “This momentum is being driven largely by phased project additions, township developments and focused submarket contributions.”
While the top three cities dominated, other urban centres showed varied performance:
This uneven distribution reflects localized demand patterns, infrastructure readiness, and developer strategies across cities.
The report reveals that the mid-segment housing category remained the backbone of the market, accounting for 46 per cent of total launches. This segment continues to attract end-users due to relatively affordable pricing and better financing accessibility.
High-end and luxury housing segments together contributed 41 per cent of new supply, supported by increasing demand from high-net-worth individuals (HNIs) seeking larger homes and premium amenities.
Interestingly, the affordable housing segment reached a 14 per cent share, its highest in ten quarters. This growth was primarily driven by projects in suburban and peripheral locations where land availability and pricing remain favorable.
The weighted average launch prices across the top eight cities recorded a 9 per cent increase quarter-on-quarter and a 16 per cent rise annually. However, the pace of price appreciation slowed compared to the 12.5 per cent increase seen in the previous quarter, suggesting a gradual stabilization.
“At a broader level, the market is transitioning into a more measured phase, with buyer and investor behaviour becoming increasingly selective amid steadier price movements and a more complex external environment,” Raina said. “The mid-segment, which accounts for nearly half of new supply, is expected to continue anchoring volumes, while high-end and luxury housing, representing over 40 per cent of launches, should retain momentum, albeit with more calibrated price appreciation.”
Infrastructure development continues to shape residential expansion patterns, pushing new launches toward peripheral and emerging corridors:
These areas offer better affordability, improved connectivity, and larger land parcels, making them attractive for both developers and buyers.
“Portfolio diversification is also gaining traction, with growing investor interest in plotted developments within gated communities,” Raina said. “At the same time, global uncertainties, are beginning to exert pressure on construction inputs and could influence project costs, pricing and launch timelines, particularly in price-sensitive segments.”
Developers are increasingly exploring alternative formats such as plotted developments and integrated townships to cater to evolving consumer preferences.
India’s residential real estate market in Q1 2026 reflects a balanced and evolving landscape, where growth is concentrated in major urban hubs while other cities show mixed trends. The dominance of Mumbai, Bengaluru, and Pune underscores their role as key growth engines, supported by infrastructure expansion and strong demand fundamentals. While the mid-segment continues to drive volumes, rising interest in luxury housing and plotted developments signals diversification in buyer preferences. However, global economic uncertainties and input cost pressures may influence future supply dynamics, making the market more selective and measured in the coming quarters.