New Delhi: Housing sales in India’s major cities have witnessed a slight slowdown in recent months, but experts insist that the real estate sector is far from being in crisis. According to industry analysts, the primary reason behind the decline is the lack of affordable housing for middle-class families rather than a drop in demand.
Recent data shows that residential property sales in Delhi-NCR, Mumbai Metropolitan Region, Pune, Bengaluru, Hyderabad, Chennai, and Kolkata declined by six percent during the April-June quarter of 2026 compared to the same period last year. Experts say the slowdown reflects weakening purchasing power rather than shrinking demand for homes.
Despite the dip in sales, developers continue to express confidence in the housing market. Around 1.06 lakh new housing units were launched across the country during the April-June quarter, marking a seven percent increase over the previous year. Industry experts believe rapid urbanisation, expanding infrastructure, and the aspiration of owning a home will continue to support long-term growth in the sector.
However, analysts point out that many developers have shifted their focus toward luxury and premium housing projects, resulting in fewer affordable homes for middle-income and budget-conscious buyers. As a result, the segment with the highest demand has the least supply.
Rising property prices, coupled with increasing home loan interest rates, construction costs, stamp duty, and registration charges, have significantly impacted middle-class households. Experts note that even families earning around ₹1 lakh per month are finding it difficult to purchase homes in major cities due to mounting financial pressure.
Consequently, many prospective buyers are postponing their purchase decisions, while others are opting for smaller homes or properties located on the outskirts of cities. This has affected sales in prime urban locations.
Experts believe the housing market can regain momentum if developers prioritize affordable housing projects. They also recommend easier access to home loans, stronger government incentives, and continued infrastructure development to boost the sector.
According to industry experts, the demand for homes in India remains strong. The real challenge is the declining affordability of homebuyers. They remain optimistic that the market will witness renewed growth if affordable housing receives greater attention.
