India housing sales are likely to remain under pressure in calendar 2026, with luxury sales expected to moderate and inventory in that segment potentially building up, brokerage Nuvama said. Its outlook followed a reported decline in sales volumes in September.
Key Takeaways
- Nuvama reported a 3% year-on-year decline in housing sales in September and a 17% drop from August.
- Across the top seven cities, sales volumes fell 8% year on year while sales value declined 3%.
- The brokerage expects housing price appreciation to moderate to the mid-single digits at best in 2026.
India housing sales weaken in September
Nuvama reported year-on-year sales declines of 16% in Chennai, 9% in Pune and 24% each in the Mumbai Metropolitan Region and Hyderabad. The National Capital Region and Bengaluru were the only two cities where absorption rose, each recording growth of 3% to 6%.
Across the top seven cities, the sharper decline in sales volumes than in sales value indicated a shift toward higher-priced properties, Nuvama said. New housing supply in those cities also slowed, falling 14% year on year and 26% month on month.
| Item | Details |
|---|---|
| September housing sales | Down 3% year on year and 17% month on month |
| Top-seven-city sales volumes | Down 8% year on year in September |
| Top-seven-city sales value | Down 3% year on year in September |
| Top-seven-city new housing supply | Down 14% year on year and 26% month on month in September |
| Q2 fiscal 2026–27 sales value | Up 12% year on year and 6% quarter on quarter |
Luxury outlook and affordability
Nuvama expects luxury housing sales to moderate, potentially leading to a buildup of inventory. It pointed to declining affordability, limited mid-income housing availability and weak job creation as pressures on the market.
Despite September’s weakness, housing sales by value rose 12% year on year and 6% quarter on quarter in the second quarter of fiscal 2026–27. The National Capital Region led the increase with 34% year-on-year growth, followed by gains of 11% to 12% each in Hyderabad and the Mumbai Metropolitan Region.
Nuvama said prices had surged across most major cities as the premium and luxury segment performed well. Its expectation of mid-single-digit price appreciation at best for calendar 2026 is a forecast, not a reported result.
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