Housing sales fall 6% in top 9 cities as new supply contracts 15%: PropEquity

As per the latest business developments, Housing sales across India's top nine cities declined 6 percent year-on-year (YoY) to 1.03 lakh units in the July-September quarter, but a sharper correction in new launches meant developers further noted fewer homes than were absorbed during the quarter, according to PropEquity.

New supply declined 15 percent quarter-on-quarter (QoQ) to 98,165 units in Q3 2026 from 1.15 lakh units in the previous quarter. Sales declined a more moderate 4 percent QoQ to 1.03 lakh units, resulting in absorption exceeding fresh supply by nearly 5,000 units.

The data suggests developers have become more wary around adding inventory even as housing demand stays above the one-lakh-unit quarterly mark.

“Q3 2026 reflects a significant dip of 15 percent Q-o-Q in new supply while the absorption numbers stay stable with a minor dip of only 4 percent despite large dip in supply,” stated Samir Jasuja, founder and CEO of PropEquity.

Chennai and Kolkata led the overall sales slide, with sales falling 17 percent YoY in both cities, followed by Pune at 16 percent, Thane at 11 percent and Mumbai at 8 percent.

In contrast, Navi Mumbai recorded 12 percent YoY expansion in sales, while Hyderabad grew 11 percent. Bengaluru remained broadly stable, with sales rising 1 percent.

Hyderabad, that stated, saw a sharp divergence between supply and demand. New launches increased 68 percent YoY to 22,090 units, while sales rose 11 percent to 15,470 units. This resulted in fresh supply substantially exceeding quarterly absorption in the city.

Navi Mumbai saw a 25 percent YoY slide in launches.

Developers trimmed fresh supply

The supply correction was broad-based. Thane recorded the steepest QoQ slide in launches at 28 percent, followed by Chennai at 22 percent, Delhi-NCR at 19 percent and Pune at 17 percent.

On a YoY basis, launches declined 32 percent in Kolkata, 25 percent in Navi Mumbai, 19 percent in Pune and 16 percent in Thane. Mumbai and Delhi-NCR additionally recorded 6 percent declines.

The only major gain came from Hyderabad, where launches jumped 68 percent YoY. Bengaluru was largely unchanged, with a 1 percent gain.

Jasuja stated the top nine cities have remained around the one-lakh-unit quarterly level for both new supply and absorption during the past eight quarters. According to PropEquity, this translates into annual supply and absorption of around 4 lakh units, or around 750 million square feet of new annual supply.

The latest numbers indicate that developers are increasingly calibrating new project launches to existing inventory and sales velocity, rather than continuing to expand supply at the same pace as in earlier quarters.