Nowhere did home prices climb faster than in the National Capital Region this July-September. Anarock Research puts the annual rise at 12 per cent, well clear of Bengaluru at 8. Across the top seven cities, the average now stands at Rs 9,714 per sq ft, up 7 per cent from Rs 9,105 a year ago.
Buyers did turn up, though in modest numbers. About 1,00,220 homes were sold across those cities in Q3 2026, against 97,080 in the same quarter last year and roughly 10 per cent more than in April-June. Sales value rose only 2 per cent, to Rs 1.55 lakh crore. Developers were the busier side of the market. They launched around 1,14,320 units, 18 per cent more than a year earlier and 8 per cent above Q2.
A market turning choosier
Ashish Agarwal, Director, AU Real Estate, sees a market changing in character. “India’s residential market is entering a phase where growth is increasingly being shaped by the quality and relevance of housing supply rather than volumes alone. The 18% year-on-year increase in new launches in Q3 2026 points to continued confidence in the sector, while the 3% rise in sales highlights a steady, more selective demand environment,” he says. “Buyers are increasingly looking beyond the basic proposition of a home and assessing the larger living experience, including open spaces, social infrastructure, connectivity and access to everyday conveniences. This shift is encouraging a more evolved housing ecosystem, with greater focus on thoughtfully planned communities and long-term liveability.”
The city-wise picture is uneven. Mumbai Metropolitan Region stayed the largest market with about 31,750 units sold, followed by Bengaluru at 16,670. Hyderabad grew fastest, with sales up 15 per cent, ahead of Bengaluru at 12 per cent and MMR at 5 per cent. The other four cities logged declines.
NCR: fewer launches, pricier tickets
NCR sold 13,765 units, 1 per cent below the 13,920 of Q3 2025 but 3 per cent above the 13,365 of the previous quarter. Fresh launches in the region fell 14 per cent from last year to about 10,900 units. What did get launched leaned expensive, with over 34 per cent of the quarter’s new supply priced above Rs 2.5 crore.
Robin Mangla, President, M3M India, reads the price print as a verdict on location. “India’s residential real estate market continues to demonstrate resilience, with housing sales across the top seven cities growing 3% year-on-year in Q3 2026 despite rising prices and geopolitical uncertainties. The 18% increase in new supply indicates that developers remain confident about the underlying demand environment,” he says. “In NCR, while sales saw a marginal moderation, the 12% annual appreciation in residential prices reflects the market’s continued strength and the premium commanded by well-connected micro-markets. As we enter the festive season, we expect homebuyer interest to remain healthy, particularly for quality developments offering strong connectivity, differentiated amenities and long-term value.”
Premium homes set the brief
For developers at the premium end of the region, the price rise comes with a design brief. Anish Nanda, VP Sales, KRISUMI, says, “The 12% rise in NCR housing prices signals a fundamental shift in the residential market, as buyers increasingly value quality, design and the overall living experience. From a developer’s perspective, this reinforces the importance of creating homes that are not only well located, but also thoughtfully designed and future-ready.” He adds, “As NCR continues to benefit from stronger infrastructure and connectivity, the premium housing segment is likely to remain an important growth driver. At KRISUMI, we believe the next phase of residential development will be defined by greater attention to craftsmanship, functionality, sustainability and community creating homes that deliver enduring value and resonate with the evolving aspirations of today’s discerning buyers.”
Ticket sizes tell part of the story. Across the seven cities, homes priced between Rs 80 lakh and Rs 1.5 crore took 34 per cent of new supply, followed by the Rs 1.5-2.5 crore band at 24 per cent. Units below Rs 40 lakh made up just 14 per cent.
Inventory builds up
All those launches have added to the stock waiting for buyers. Unsold inventory across the seven cities rose 12 per cent over the year to about 6,30,590 units at the end of September, from roughly 5,61,760 units a year earlier.
Ashish Sarin, CEO & Director, Alpha Corp Development Limited, traces the quarter’s resilience to the economy and to what buyers want from a home. “The residential real estate market’s Q3 performance reflects the resilience of housing demand amid evolving global and economic conditions. Stable economic fundamentals and improving employment prospects have encouraged buyers to move ahead with home purchases,” he says. “At the same time, strong end-user demand continues to support sales, with housing increasingly being viewed as a long-term need rather than purely an investment avenue. Improved connectivity and infrastructure development are further enhancing the attractiveness of emerging residential corridors.”
On the stock overhang, Sarin takes a constructive view. “The rise in new supply also indicates sustained developer confidence and provides homebuyers with greater choice. Together, these factors are creating a healthy demand-supply environment and supporting the sector’s growth momentum. At Alpha Corp, we believe the next phase of residential growth will be shaped by well-planned communities that combine strategic location, thoughtful design and strong social infrastructure.”
