Mumbai, Chennai Lead India's Housing Price Growth in Q3

India Housing Demand Rises 8.2% in Q3 2026 as Mumbai and Chennai Lead Price Growth

India’s residential real estate market gained momentum in the July to September quarter of 2026 as homebuyer interest improved ahead of the festive season. According to Magicbricks’ latest PropIndex report, housing demand increased 8.2% quarter over quarter, although it remained 9.6% lower than the same period last year.

The report highlights stronger buyer activity across several major property markets, including Bengaluru, Ahmedabad, Navi Mumbai, Thane, and New Delhi. Mumbai and Chennai also recorded strong quarterly price increases, reflecting continued interest in residential properties in key urban centers.

Mumbai and Chennai Record Strong Housing Price Gains

Residential property prices increased in most major markets during the third quarter of 2026. Mumbai and Chennai recorded some of the strongest quarterly gains, followed by Ahmedabad and Bengaluru.

Greater Noida and Gurugram, however, experienced relatively stable prices during the period. At the national level, property prices continued to rise modestly, while buyer demand showed signs of recovery in several important housing markets.

The report suggests that the approaching festive season has helped improve homebuyer sentiment. However, the market has yet to recover fully to the demand levels recorded a year earlier.

2BHK and 3BHK Apartments Remain Homebuyers’ Top Choices

Medium-sized homes continued to attract the largest share of housing searches across India. Properties measuring between 750 and 1,250 square feet and those ranging from 1,250 to 2,000 square feet together accounted for more than two-thirds of total demand.

Two-bedroom and three-bedroom apartments remained the most popular choices among homebuyers. This trend highlights the continued preference for homes that offer a balance of living space, comfort, and long-term value.

For developers, these preferences underline the importance of offering homes that match buyers’ space requirements, lifestyle needs, and budgets.

Housing Demand Continues to Outpace New Supply

Despite the improvement in buyer interest, new housing supply grew by just 1.9% nationally during the quarter. This increase was slower than the rise in demand, creating a gap between the number of homes buyers were searching for and the new properties entering the market.

Demand exceeded supply in 10 of the 13 cities covered by the report. Bengaluru was the only major market where new property listings remained broadly in line with the demand generated during the quarter.

These conditions suggest that local inventory levels and property prices will remain important factors for homebuyers. Buyers are likely to compare locations, available housing options, and affordability before making purchase decisions.

Real Estate Leaders Expect Festive Season to Support Sales

Industry leaders expect the festive season to provide further support to India's residential property market, as many families consider purchasing homes during this period.

Mohit Agarwal, Business Head at Conscient Infrastructure Pvt. Ltd., said the festive season traditionally brings positive sentiment to the real estate sector and encourages people to consider new beginnings. He expressed confidence that buyers would focus on thoughtful, future-ready investments that meet their lifestyle goals and long-term aspirations.

Rohit Kishore, CEO of Hero Realty, also highlighted the importance of auspicious occasions in driving home sales. He noted that the combination of festive optimism and the industry's growth potential could support strong housing demand.

Similarly, Saurabh Paliwal, Senior Vice President of Sales at BPTP Limited, said festivals such as Navratri hold special significance for families planning major life decisions, including homeownership.

Housing Market Outlook for the Coming Months

The latest PropIndex findings point to a gradual improvement in India's housing market as the festive season approaches. Stronger quarterly demand, rising prices in several cities, and continued interest in two-bedroom and three-bedroom apartments indicate that homebuyers remain active despite the year-over-year decline.

However, the slower growth in new supply and differences in local market conditions could influence buying decisions in the months ahead. Mumbai, Chennai, Bengaluru, Ahmedabad, Navi Mumbai, and Thane remain important markets to watch as developers and buyers respond to changing demand and pricing trends.

The festive season may provide additional momentum, but sustained market growth will depend on affordability, suitable housing availability, and buyer confidence.