India's residential housing market experienced a 6.1% year-on-year decline in sales during Q2 FY2027, with housing sales falling to 91,729 units across the top eight cities, according to PropTiger's Real Insight Report Q2 2026. Sales also declined 4.4% from the previous quarter, when the market had recorded 95,973 units. The decline should be viewed as a phase of consolidation rather than a broad slowdown, as the year-on-year comparison was against a strong Q2 2025 base of 97,674 units. Average residential price rose 1% sequentially to ₹10,153 per square foot, remaining above the ₹10,000 mark for a second consecutive quarter, with all eight markets recording annual price growth ranging from 4.4% in Chennai to 26% in Bengaluru. New housing launches rose 6% YoY to 89,161 units, though launches declined 4.2% sequentially, with sales exceeding new supply by 2,568 units, maintaining relatively stable demand-supply balance. The latest RBI data confirms this trend, with house price growth moderating to 3.6% year-on-year in Q1 FY27, down from 4.5% in the previous quarter, as reported by The Economic Times.
The slowdown was most visible in Pune and Bengaluru, where sales dropped 20.8% and 9.2% respectively, as reported by PropTiger. In technology-heavy markets, concerns surrounding AI-driven workforce changes and layoffs have particularly affected housing sentiment, especially among buyers looking at properties below ₹1 crore. According to the report, this has had a bearing on buyer sentiment, especially in the more affordable segment. Hyderabad has remained comparatively resilient, with sales increasing 14.6% YoY to 13,196 units, supported by its IT base, pharmaceutical and data-centre activity, with housing launches increasing 21.6% annually. Meanwhile, Ahmedabad saw sales decline 20.2% to 7,541 units, while Bengaluru sold 14,186 homes during the quarter. The report highlights employment uncertainty as an additional pressure point for technology-dependent housing markets, with the slowdown occurring at a time when companies across the technology sector have been restructuring roles and reassessing workforce requirements amid AI expansion.
Bengaluru led the price surge with a 26% year-on-year increase, pushing prices to levels that are raising affordability concerns for mid-income buyers. Pune also crossed the ₹8,000-per-sq-ft mark for the first time, rising 13.7% YoY to ₹8,084 per sq ft, with the average price reaching ₹8,084 per square foot and taking the market above the ₹8,000 threshold for the first time. Meanwhile, MMR remained the country's largest residential market by both volume and value, with 24,112 units sold at an average price of ₹15,422 per sq ft, up 20.4% YoY. At the other end of the spectrum, Ahmedabad remained the most affordable among the top eight markets, with an average price of ₹5,295 per sq ft and recording the sharpest sequential price increase at 7% QoQ. The slowdown in volumes has not resulted in a broad correction in property prices, with the average sales-weighted price across the eight markets climbing 1% from the previous quarter.
Chennai recorded the strongest annual growth in sales, with volumes rising 36% YoY to 7,183 units. Hyderabad followed with 13,196 units sold, up 14.6% YoY. On a sequential basis, Kolkata showed a sharp quarter-on-quarter improvement, with sales rising 22% QoQ following a post-election recovery, though volumes were still 8.6% lower than in Q2 2025. However, Pune and Ahmedabad saw sales decline 20.8% and 20.2% respectively from the year-ago period, while Bengaluru sales fell 9.2% and MMR and Delhi-NCR recorded 7% declines each. The moderation was partly attributed to pre-monsoon seasonality and buyer caution linked to the US-Iran conflict, with technology-led markets particularly affected in the sub-₹1 crore segment amid AI-led workforce restructuring and technology-sector layoffs. Pune recorded the largest annual drop in home transactions among the markets covered, with sales falling to 12,642 units.
According to PropTiger's Real Insight Report, India's residential market is maturing, not weakening, with prices remaining above ₹10,000 per square foot for two consecutive quarters even as buyers have become more selective. Total unsold inventory across India stood at 1.8 billion square feet as of June 2026, translating to approximately 1.9 years of trailing 12-month sales. MMR sales increased to 41.5 million square feet, backed by launches of 33.8 million square feet, while Bengaluru recorded sales of 30.7 million square feet and Hyderabad reached 34.3 million square feet, driven by new project launches of 55.5 million square feet. NCR saw residential sales decline to 23.5 million square feet, down 27% YoY and 8% sequentially, as launches in the region dropped to 21.2 million square feet. For the third quarter, PropTiger expects festive-season demand, infrastructure progress and continued GCC and start-up hiring to support the housing market, with the outlook remaining one of cautious optimism, where affordability remains a key variable for both buyers and developers.
