India’s housing market appears to be entering a consolidation phase, with primary housing sales across Tier-1 cities remaining almost unchanged at Rs 3.63 lakh crore in the first half of 2026. 

However, the number of homes sold fell 2% year-on-year to around 2.58 lakh units, while developers launched nearly 2.98 lakh homes, up 7%.

The latest India Housing Report by CRE Matrix and the National Association of Realtors-India shows that rising property prices are helping maintain the overall value of sales even as transaction volumes decline. The average ticket size reached around Rs 1.41 crore, rising only 2% from a year earlier, marking the slowest growth in three years.

The data points to a continued shift towards premium housing. Buyers are increasingly purchasing higher-value properties, which has helped developers maintain sales values despite fewer transactions. 

Chennai provides a clear example of this trend. Its housing sales value increased 16% to Rs 13,722 crore, even as the number of homes sold dropped 12%. The average ticket size jumped 32% to Rs 1.31 crore.

Mumbai Metropolitan Region (MMR) also emerged as the largest housing market by sales value, overtaking Delhi-NCR. MMR accounted for 26% of India’s Tier-1 housing sales value and recorded around Rs 93,800 crore in sales, an 8% year-on-year increase. Bengaluru recorded the strongest growth among major markets, with sales value rising 25%.

The supply-demand gap remains an important factor for the sector. Developers launched 2.98 lakh homes against sales of 2.58 lakh units during H1 2026, indicating that new supply is currently growing faster than absorption. This could increase competition among developers, particularly in markets where inventory levels are rising.

However, more recent Q3 data offers a mixed picture. Housing sales across the top seven cities increased 3% year-on-year to about 1 lakh units, while sales value rose 2% to Rs 1.55 lakh crore. This suggests demand has remained resilient in some major markets despite the moderation seen in the first half.

Overall, India’s housing market remains supported by premiumisation and strong demand in key cities, but slower volumes and faster supply growth indicate that developers may face a more measured growth environment ahead.

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