Bengaluru Leads National Housing Market with 24% Price Growth in Q1 2026 as Other Cities Cool
New Delhi, May 27, 2026: While residential property markets in most major Indian cities cooled during the first quarter of 2026, Bengaluru emerged as the nation’s standout performer. According to the Real INSIGHT – Residential Q1 2026 report by PropTiger, the average housing price in Bengaluru surged by 24% year-on-year (YoY) to Rs 9,785 per sq. ft., accelerated from the 14% growth recorded in Q1 2025. This surge secured Bengaluru the second-highest average housing price nationally, trailing only the Mumbai Metropolitan Region (MMR), which maintained the top position at Rs 15,120 per sq. ft. following a 20% YoY increase, PropTiger said in a press release.
The report highlighted that property prices across India’s top eight cities sustained a broad-based upcycle in Q1 2026, jumping between 3% and 24% YoY. This collective momentum pushed the national weighted average to a landmark benchmark of Rs 10,050 per sq. ft. for the first time. However, a cooling trend was highly visible in markets like Delhi-NCR, where YoY price growth moderated significantly to 18% (Rs 9,534 per sq. ft.) down from a massive 43% growth seen in Q1 2025. Total housing sales across the top eight cities dipped slightly by 2.2% YoY to 95,973 units, even as cities like Chennai, Bengaluru, and Hyderabad bucked the trend with strong double-digit sales growth.
The residential market’s current dynamics reflect a distinct shift toward premium and upper mid-income segments, particularly in Mumbai MMR, Bengaluru, and Delhi NCR. While this premium concentration is expected to create slower absorption cycles for higher ticket-size unsold stock, the report notes that developers are prioritizing price integrity and project viability over volume-driven liquidation. Looking ahead, the real estate sector’s primary challenge for the remainder of the year will involve navigating the balance between premium inventory absorption and mid-income affordability.
“The GCC and startup employment engine continues to prove more durable than conventional IT hiring cycles, providing Bengaluru with a structurally differentiated demand base that is less susceptible to sector-specific disruption,” the report said.
“Property prices across top eight cities sustained a broad-based upcycle in Q1 2026 registering positive year-on-year appreciation underscoring the depth and resilience of underlying demand,” according to the report.
“The combination of positive QoQ and YoY sales growth, supply running marginally below the prior quarter, and strong price appreciation points to a market where demand is structurally absorbing available premium inventory without creating overhang,” the report said.
Prakash Tejwani, CEO, PropTiger, stated “The Indian residential market has transitioned into a structurally more disciplined phase. Growth today is increasingly being driven by demand quality, inventory discipline, and buyer confidence rather than speculative expansion.”
“A disproportionate share of new launches in Q1 2026 – particularly in Mumbai MMR, Bengaluru, and Delhi NCR – remained concentrated in the premium and upper mid-income segments. Unsold stock in higher ticket-size categories is therefore expected to exhibit slower absorption cycles, given longer buyer decision timelines and lower transactional liquidity compared to mass-market housing.”
“Overall, the combination of near-flat supply growth, stable absorption, and continued price appreciation across all eight cities indicates that inventory levels remained well managed through Q1 2026. Developers demonstrated a preference for maintaining price integrity and project viability over volume-driven liquidation – a posture that is consistent with a maturing market operating within a broadly comfortable supply-demand equilibrium.”
