1.71 lakh homes sold across India’s top 8 cities in H1 2026; Mumbai leads, NCR sales fall 7%

1.71 Lakh Homes Sold in India’s Top 8 Cities in H1 2026: Mumbai Leads, NCR Sales Drop 7%

1 71 lakh homes sold across – India’s leading urban markets recorded a total of 1.71 lakh home sales during the first half of 2026, according to a report by Knight Frank India. The figure, which encompasses the top eight cities, shows a modest 1% increase compared to the same period in 2025. This growth, however, is tempered by a notable 7% year-on-year decline in the National Capital Region (NCR), highlighting the divergent trends across key real estate hubs.

Key Market Trends and Regional Insights

While the overall market experienced a slight uptick, the performance varied significantly among cities. Mumbai, the financial capital, remained the top-performing city, accounting for 47,355 units sold in the first six months of 2026. Its consistent demand across all price segments reinforced its dominance. Bengaluru, on the other hand, surged with a 5% rise in sales, driven by the city’s expanding tech industry and growing global business presence.

“Mumbai’s market stability, coupled with its ability to attract buyers at every price point, continues to set the benchmark for residential real estate in India,” noted Knight Frank India’s analysis. The report emphasized that Mumbai’s sales in the ultra-luxury category, which includes properties priced above ₹50 crore, reached 23 units in H1 2026, underscoring its status as a premium real estate destination.

Inventory and Price Segmentation

The report revealed a shift in inventory dynamics, with new housing developments outpacing sales in most cities. This led to a 4% annual increase in unsold properties, bringing the total to 5.25 lakh units. Notably, the ultra-premium segment in the NCR, including Gurugram, Noida, and Delhi, saw strong performance, accounting for 10,783 sales in the ₹2 crore-₹5 crore range and 3,108 in the ₹5 crore-₹10 crore bracket.

“Despite the NCR’s 7% decline in sales, it continues to dominate the ultra-premium real estate segment, reflecting investor confidence in high-value properties,” the report stated. Meanwhile, the affordable housing market faced challenges, with sales dropping 15% to 32,063 units, representing just 19% of total transactions.

Factors Influencing Market Growth and Decline

The growth in home sales across India’s top cities can be attributed to several factors, including sustained demand for premium properties and the development of global business hubs. Cities like Bengaluru and Hyderabad benefited from this trend, with Bengaluru leading the ₹1 crore-₹2 crore price bracket and contributing 12,808 units. However, the NCR’s 7% sales drop raises concerns about market saturation and changing buyer preferences.

“The NCR’s decline may be linked to economic uncertainties and a shift in investor focus toward other metropolitan areas,” the report suggested. This trend also reflects a broader national movement toward higher-value real estate, as evidenced by the 54% share of sales in properties priced over ₹1 crore, up from 49% in the previous year.

Developer Activity and Future Outlook

Developers launched 187,350 residential units in H1 2026, a 4% increase from the prior year, indicating continued investment in the sector. However, this supply growth outpaced demand, particularly in the NCR, where inventory levels rose. The report cautioned that developers must adapt to evolving market conditions to meet buyer expectations, especially in the premium and ultra-premium segments.

Looking ahead, the real estate market in India’s top cities is expected to stabilize as developers refine their strategies and address inventory challenges. With 1.71 lakh homes sold in the first half of 2026, the sector remains resilient despite regional disparities, offering opportunities for growth in the coming months.

Regional Comparison and Buyer Behavior

A closer look at the regional performance highlights the contrast between Mumbai and the NCR. While Mumbai’s sales remained steady, the NCR faced a 7% decline, suggesting a slowdown in buyer activity. The report attributed this to factors such as higher interest rates and increased competition from other metropolitan areas like Bengaluru and Hyderabad.

“Buyer behavior is increasingly influenced by location and pricing, with premium cities like Mumbai and Bengaluru attracting more investment,” the analysis concluded. This trend underscores the need for developers to focus on quality and value to remain competitive in a market that is gradually shifting toward high-end properties.

Market Implications and Strategic Adjustments

The 1.71 lakh home sales in the first half of 2026 signal a mixed market scenario, where growth and decline coexist. Mumbai’s consistent performance highlights its role as a key driver of the national real estate market, while the NCR’s challenges emphasize the importance of strategic adjustments. Developers are advised to diversify their portfolios and target segments that align with current buyer preferences, particularly the premium market.