Housing Sales Plummet Below 1 Lakh Units for First Time in 18 Quarters Amid Supply Chain Constraints

Housing Sales in India's Top Cities Dip Below One Lakh Mark

For the first time in 18 quarters, housing sales in India's top nine cities fell below the one lakh mark in the January-March 2026 quarter, as supply constraints weighed on demand. According to real estate data and analytics platform PropEquity, sales declined by 13 percent year-on-year and 6 percent quarter-on-quarter (QoQ) to 98,761 units during the January-March period.

The decline in sales comes after a sustained post-pandemic recovery phase and reflects a moderation driven largely by fewer project launches across cities. Industry experts attribute the slowdown primarily to a supply-side contraction, which resulted in close to 22,000 lesser units being supplied in Q1 2026 compared to the same period last year.

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Bengaluru and Delhi-NCR emerged as exceptions, with Bengaluru retaining its position as the top-selling market with 17,991 units, registering a 16 percent QoQ and 3 percent YoY growth. Delhi-NCR recorded sales of 12,141 houses, up 13 percent YoY, although sequential sales were down a percent.

On the supply side, Delhi-NCR was the fastest-growing market, with 17,227 unit launches in Q1, a 89 percent YoY and 8 percent QoQ increase. Bengaluru saw a 10 percent QoQ increase but a 24 percent YoY decline in new launches, with 17,782 houses launched in the quarter.

The slowdown in the housing market suggests that it may be entering a phase of consolidation after a multi-quarter growth cycle. With launches slowing and inventory tightening in several cities, sales momentum will likely depend on fresh supply pipelines and pricing strategies. While demand fundamentals remain intact in markets such as Bengaluru and NCR, the broader slowdown highlights the increasing role of supply dynamics in shaping India's residential real estate trajectory.