India’s housing market just delivered its strongest quarter since the post-pandemic boom. Housing sales across the country’s top nine cities rose 19% year-on-year to 1,12,458 units in Q2 2026 (April–June), according to PropEquity — even as geopolitical uncertainty rattled global markets. New supply surged 43% YoY to 1,17,609 units, the highest in several quarters.
City-by-City: Who Is Leading the Charge?
Bengaluru: +47% YoY — 21,516 units. India’s IT capital is on fire. The RBI’s FCNR deposit policy, which boosted NRI remittances, is funneling capital into Bengaluru real estate. Tech sector hiring — driven by AI infrastructure buildout — is pulling young professionals into the city and creating rental and ownership demand simultaneously.
Navi Mumbai: +61% YoY — 11,029 units. The biggest surprise of the quarter. The Navi Mumbai International Airport construction (target: operational December 2026) is driving a massive pre-completion land grab. Plots and apartments within 5 km of the new airport have seen 15–25% price appreciation in 12 months.
Mumbai: +32% YoY — 10,561 units. Luxury and premium segment domination. Properties above ₹2 crore are outselling affordable housing for the first time in Mumbai’s history. The ₹20,000 crore aerocity investment by Adani Enterprises (announced this week) at six airports will further boost commercial real estate in the Bandra-Kurla Complex corridor.
Hyderabad: +22% YoY — 14,410 units. The city is also the top supply market at +75% YoY, with 18,407 new units launched. Pharma, IT, and defence manufacturing clusters are creating steady employment inflows. Prices remain 20–30% below Bengaluru for similar quality.
Chennai: +18% YoY — 6,323 units. Semiconductor and electronics manufacturing (Micron, Foxconn, Tata Electronics) is creating a new middle-class demand base in Chennai’s western corridors.
Delhi-NCR: -14% YoY — 10,082 units. Kolkata: -23% YoY — 3,414 units. Both markets are under pressure. NCR faces oversupply in premium segments and regulatory delays. Kolkata’s real estate sector is dealing with political uncertainty and slower corporate expansion.
The Middle East Investor Pivot
One of the most striking findings from the PropEquity report: “We are witnessing greater interest from investors who were previously evaluating opportunities in the Middle East due to India’s economic stability, infrastructure growth and encouraging long-term real estate fundamentals.” The Iran-US conflict has made Gulf property investment riskier — and Indian real estate, backed by 7.7% GDP growth, is the beneficiary.
What This Means for Buyers and Investors
If you are buying to live: Hyderabad and Chennai still offer the best value per square foot for quality apartments in good locations. Bengaluru’s IT corridor (Whitefield, Sarjapur) commands a premium but has the best rental yield (3.5–4.5%). Mumbai is a lifestyle buy — numbers rarely justify it purely on yield.
If you are investing: Navi Mumbai has the strongest near-term catalyst with airport completion. Bengaluru has the strongest long-term structural demand. Both will outperform over 3–5 years.
Realty stocks to watch: Oberoi Realty (just got Gurugram approval this week), Prestige Estates (Bengaluru-heavy), Macrotech Developers (Lodha — Mumbai and Pune), Brigade Enterprises (Bengaluru, Hyderabad), DLF (NCR luxury).
Disclaimer: Real estate investment carries risk. Past performance does not guarantee future returns. Consult a registered financial and real estate advisor before making investment decisions.
