India's Residential Sales Surge 8% in Q1 Amid Strong Launches
India’s residential market witnessed a robust performance in the first quarter of 2026, with 70,631 units sold, marking an 8% year-on-year growth. This uptick was primarily fueled by a significant surge in new launches, which reached 90,023 units, a 13% increase compared to the previous year. The report, compiled by commercial real estate services firm JLL, underscores the strong supply pipeline from reputable developers, providing buyers with a wide array of options and bolstering market confidence.
The quarter saw a notable 32% quarter-on-quarter increase in new launches, with Bengaluru and Delhi NCR leading the charge. However, sales growth was slightly lower than launch activity, growing by 5% less, indicating a more cautious buyer approach in response to prevailing economic conditions.
According to Siva Krishnan, Senior Managing Director (Chennai & Coimbatore) and Head of Residential Services, India at JLL, the temporary divergence between sales and new launches is a common market adjustment and not a cause for concern. 'This reflects a healthy market adjustment and not a structural issue,' Krishnan explained.
The premium housing segment was a significant driver of growth, with homes priced above Rs 1 crore accounting for 71% of sales, up from 59% in Q1 2025, representing a 30% year-on-year increase. Specifically, the Rs 1.5–3 crore price range saw a remarkable 67% year-on-year surge, highlighting a growing preference for spacious, well-appointed homes in prime locations.
On the other hand, the sub-Rs 1 crore segment contracted by 24% year-on-year, with its market share declining from 41% to 29%. This shift is attributed to rising land and construction costs, a limited supply of affordable housing in core urban areas, and developers' strategic focus on higher-margin premium projects that better align with evolving buyer preferences for quality over entry-level options.
Markets such as Chennai, Delhi-NCR, Bengaluru, and Hyderabad have benefited from a strong corporate presence, including numerous multinational corporations and startups, which generate substantial employment. Continuous infrastructure development in these regions has further enhanced their appeal as residential destinations.
Chennai led the way with a 61% year-on-year growth in sales, followed by Delhi-NCR with a 30% increase, Bengaluru with 18%, and Hyderabad with 6%. These figures underscore the resilience and dynamism of India's residential real estate market, particularly in key urban centers.
