Housing sales across the top seven cities fell 6% year-on-year from 96,285 units in Q2 2025 to 90,715 units in Q2 2026, according to data from real estate consultancy ANAROCK. Pune, Mumbai Metropolitan Region (MMR), National Capital Region (NCR) and Chennai recorded year-on-year declines ranging from 6% to 15%. As reported by ANAROCK, the fall was attributed to geopolitical uncertainty and AI-related job market concerns in the IT sector. However, recent market data shows a significant shift in seller behavior, with nearly half (46.2%) of home sellers offering concessions in May 2026, representing the highest share on record for that month.
The housing market is witnessing a fundamental change with seller concessions becoming increasingly prevalent across all segments. According to Redfin, one in seven homes (15.7%) sold in May had both a price drop and a seller concession — another May record. Seller concessions can take various forms including closing-cost credits, mortgage-rate buydowns, and home warranty coverage. Developers are particularly aggressive, with nearly two-thirds (62%) of builders offering cash incentives in June, as reported by the National Association of Home Builders. These concessions can cover various expenses including loan origination fees, escrow costs, title insurance, and even premium upgrades like high-end appliances and preferred lot locations.
Despite the sales decline, average residential prices across the top seven cities rose 7% year-on-year in Q2 2026, according to ANAROCK data. Santhosh Kumar, vice chairman of ANAROCK Group, noted that while the market is seeing some plateauing, no meaningful correction has occurred. Large listed developers are holding firm on pricing, with Ravi Shankar Singh from Colliers India indicating that negotiations can lead to discounts of 5-10% in some cases, particularly for ready-to-move homes and projects with sizeable unsold stock. However, builders are increasingly offering concessions instead of direct price cuts, with many using preferred lenders to offer loan packages with permanent or temporary rate buydowns.
Buyers with strong financial readiness, including cash for down payments or pre-approved home loans, have enhanced bargaining power. According to ANAROCK, cities with high inventory build-up like Bengaluru and MMR offer more room for negotiation. Kumar recommends visiting projects around quarter-end when sales teams face greater pressure to close deals, and getting quotes from two or three other projects in the same micro-market to strengthen bargaining power. Recent market data shows that concessions can cover various expenses including repairs, home warranties, and even loan origination fees, providing buyers with significant cost savings at closing.
According to industry experts, there is no guarantee of widespread price corrections, with inventory overhang at about 20 months nationally. Pankaj Kapoor from Liases Foras notes that rental yields have improved, indicating property appreciation potential. Existing investors should hold quality assets unless needing liquidity, while new investors may consider purchases as builders want to sell inventory faster. The focus should remain on reputable developers, project quality, and locations supported by infrastructure and employment growth rather than expectations of quick price appreciation. Recent market trends show that seller concessions are helping thaw a real estate market frozen by higher mortgage rates, with nearly half of sellers offering concessions during the 2026 spring market.
