India Housing Supply Rises as Prices Continue to Climb

16 Apr 2026 CW Team

India’s residential real estate market began 2026 with strong supply growth and continued price appreciation, even as buyer demand moderated sequentially, according to Magicbricks PropIndex Q1 2026. Across 13 major cities, active property supply increased 6.8 per cent quarter-on-quarter and 10.1 per cent year-on-year to 1,10,821 listings, while the national average property rate rose to Rs 14,633 per sq ft, up 14.1 per cent from a year earlier.

Overall residential demand declined 2.2 per cent quarter-on-quarter but remained 1.5 per cent higher year-on-year, suggesting the slowdown was seasonal rather than structural. Total demand across India stood at around 31,70,00 units during the quarter.

At the city level, demand remained mixed. Noida, Chennai and Kolkata recorded sharper declines, while Ahmedabad emerged as a relatively resilient market. New Delhi and Pune saw only marginal moderation. On the supply side, developers continued to add inventory aggressively, led by Bengaluru, Hyderabad and Kolkata, pointing to a healthy launch pipeline.

The report also highlights a growing shift towards premium housing, with inventory in the Rs 30 million-plus segment expanding across key cities. Buyer preference remained focused on practical formats, with 2 BHK and 3 BHK homes accounting for nearly 80 per cent of total demand. Mid-sized homes in the 750–1250 sq ft range continued to dominate.

Regionally, NCR, Bengaluru and Hyderabad are seeing stronger appetite for larger homes, while the Mumbai Metropolitan Region remains tilted towards compact and affordable housing because of pricing pressures. The overall trend points to a more mature, end-user-led market, with rising emphasis on quality, space and lifestyle-driven upgrades.

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