India's housing market rebounds while office leasing hits record growth in Q3 2026

India's residential real estate sector regained traction in Q3 2026, with housing sales across the seven major cities climbing 3% year-on-year to approximately 100,220 units and generating about ₹1.55 trillion in value. After a 6% drop in Q2 and a 7% decline in Q1, the market posted a 10% quarter-on-quarter increase, while overall supply rose 8% YoY. Mumbai recorded the highest sales at around 31,750 units, followed by Bengaluru with 16,670 units, together accounting for nearly half of total sales.

Hyderabad posted the strongest annual growth at 15%, with Bengaluru and Mumbai also posting double-digit gains. New housing launches surged 18% YoY to roughly 114,320 units, led by Mumbai and Hyderabad. In the office segment, leasing reached a record 18.7 million square feet, up 9% YoY, with Bengaluru and Delhi-NCR leading the growth.

Flex-space providers added about 4 million square feet, a 49% increase. Office vacancy stayed near 16% despite record supply additions, and average rents rose 7% YoY across the top markets. Industry leaders anticipate continued demand and a robust fourth quarter.