Housing sales value rises 11% in H1CY26; Bengaluru leads market growth: Report
New Delhi, July 29
Housing sales by value rose 5 per cent year-on-year in June 2026, registering a 6 per cent month-on-month increase, while expanding 9 per cent in the second quarter and 11 per cent across the first half of 2026, according to a report by Nuvama.
During H1CY26, demand value recorded its strongest expansion in southern India, surging 37 per cent YoY in Bengaluru, followed by a 26 per cent rise in Chennai. The Mumbai Metropolitan Region (MMR), Pune, and Kolkata each recorded a 13 per cent increase in sales value over the same period.
In contrast, sales value in the National Capital Region (NCR) dropped 7 per cent YoY. On the volume front, H1CY26 sales volumes jumped 22 per cent in Bengaluru and fell 18 per cent in NCR, while all other major cities saw growth in the range of 4 per cent to 9 per cent.
According to the report, supply metrics showed moderation, as launches by value fell 10 per cent YoY in June 2026, alongside a 5 per cent reduction in launch volumes. Total launches by value in Q2CY26 declined 6 per cent YoY, even as overall supply edged up 9 per cent during H1CY26.
Regional launch patterns varied significantly during the six-month period; MMR, Bengaluru, Kolkata, and Hyderabad recorded an uptick in launches between 10 per cent and 43 per cent, whereas NCR and Chennai experienced slowdowns between 21 per cent and 34 per cent. Bengaluru retained its position as the best-performing market for both supply and demand growth.
As per the report, inventory levels across the country held firm at 20 months, remaining flat on both a YoY and MoM basis. Pune maintained the leanest inventory position among major markets at 14 months. Most other cities reported inventory levels between 17 and 22 months, whereas Hyderabad recorded the highest level at 29 months.
Sustained activity in the luxury and premium housing segments supported price increases across all major cities in Q2CY26, led by a 20 per cent YoY jump in Chennai, while other cities saw price gains of 4 per cent to 8 per cent.
In its assessment of real estate equities, the Nuvama report noted, "We argue volume growth will determine the performance of RE stocks."
Outlining the conditions necessary to sustain physical sales momentum, the report stated that volumes can remain healthy provided developers "reduce focus on luxury segment and reorient towards mid-income/premium segment" and "focus on improving affordability by keeping prices/ticket size restricted".
Addressing regional performance variations, the report added, "While the NCR market will continue to face challenges in pockets (especially in the INR50-100mn ticket size bracket), Bengaluru and Chennai are well placed to continue on the growth path."
— ANI
Reader Comments
NCR seeing a 7% drop in sales value while Bengaluru is booming – classic story of Delhi's overpriced market vs Bangalore's more balanced growth. The report says luxury segment needs to pivot to mid-income... that's exactly what we've been saying for years! Otherwise it's just a rich man's game.
As someone who recently bought a flat in Chennai, the 26% rise in sales value is no surprise. Prices are soaring but at least inventory is manageable. My only concern is that launches actually fell 34% in Chennai during H1 – that could create supply issues down the line.
Interesting that Pune has the leanest inventory at 14 months – that shows disciplined supply management. Meanwhile Hyderabad at 29 months is alarming! Developers there need to slow down or prices will crash. Also, the report's advice to focus on mid-income segment is spot on. We can't have a market only for the ultra-rich.
I moved from Bangalore to Delhi for work, and the NCR market is just insane. The 18% volume drop doesn't surprise me – who can afford INR50-100mn flats in Gurgaon? Meanwhile Bengaluru's 22% volume growth shows sensible pricing. Indian real estate needs more cities like Bangalore and less like NCR.
Great that overall sales value is up 11% in H1, but I worry this is just inflation and not real growth. Developers need to control prices – a 20% YoY jump in Chennai's luxury segment is not sustainable. And what about first-time buyers? They're getting priced out completely. The report's suggestion to reduce focus on luxury is sensible.
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