India's housing market is showing signs of a slowdown in price appreciation, but Bengaluru continues to buck the trend, recording the sharpest annual increase among six major cities in the July–September quarter of 2026. Residential property prices in Bengaluru surged 14.5% year-on-year in Q3 2026, driven by strong demand and a decline in new project launches, according to a report by real estate platform NoBroker.
The National Capital Region (NCR) followed with a 10.6% increase, while Chennai registered 10.2% growth. Mumbai Metropolitan Region (MMR) saw prices rise 8.9%, followed by Pune at 7.7% and Hyderabad at 5.6%.
The figures point to a growing divide in India's housing market, where limited availability of new homes is pushing up prices in some cities, while rising inventory and subdued demand are giving buyers greater bargaining power elsewhere.
Bengaluru Property Prices Rise as New Housing Supply Shrinks
Bengaluru remained India's fastest-appreciating residential market for the third consecutive quarter, with average property prices climbing to ₹11,293 per square foot from ₹9,863 a year earlier. The city's housing market recorded 14% growth in demand even as new launches declined 12%, creating a supply-demand imbalance that continued to support higher prices.
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Annual price growth stood at 14.5% in the first quarter, accelerated to 16% in the second quarter and moderated slightly to 14.5% in Q3.
North and East Bengaluru emerged as key development corridors, attracting a significant share of new residential launches. The report indicated that project approvals could improve as processes introduced by the Greater Bengaluru Authority become more established.
The NCR housing market presented a contrasting picture, with property prices increasing 10.6% even as buyer demand weakened across several locations.
Gurugram registered an 8% decline in demand, while Noida saw a sharper 9% fall. Demand across the remaining NCR markets dropped 5%.
Faridabad emerged as the region's strongest performer, recording 15% annual price appreciation and becoming the only NCR market to report demand growth. Noida followed with an 11% price increase, while Gurugram recorded 8%.
Developers also scaled back construction plans, with new launches falling 23% to 7,177 units during the quarter.
High property prices and the growing dominance of premium residential projects in Gurugram have made homeownership increasingly difficult for some buyers, prompting developers to shift their focus towards comparatively affordable locations.
Ghaziabad, Noida and Faridabad together accounted for 77% of new launches across NCR, highlighting the changing geographical focus of residential development.
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While Bengaluru and NCR witnessed double-digit price appreciation, Hyderabad and Pune experienced comparatively moderate increases.
Hyderabad recorded the slowest growth among the six cities, with average residential prices increasing 5.6% to ₹8,732 per square foot.
This marked a slowdown from the 9% growth recorded in Q2 and brought the city's price appreciation closer to the 5.1% registered in the opening quarter.
A sizeable pipeline of housing projects nearing completion, combined with relatively modest demand growth, has restricted the scope for significant price increases.
Pune's housing market followed a similar trajectory, with annual price growth easing to 7.7% from 10% in the preceding quarter.
Despite the increase, Pune remained the most affordable of the six markets based on average residential prices, at ₹8,622 per square foot.
An increase in new launches, coupled with largely unchanged demand, has expanded the options available to homebuyers and helped keep prices relatively stable.
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Looking ahead, the report expects Pune and the Mumbai Metropolitan Region to remain important markets for new residential supply during the festive season.
Both markets witnessed a strong recovery in project launches during Q3 compared with the corresponding quarter last year. However, developers in Pune may adopt a cautious approach to launching additional phases because of subdued demand.
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