India’s housing market is caught in an unusual bind – with the sales slipping, developers are now pulling back on new projects. Yet residential prices refuse to fall.

Pan-India housing sales declined 7% year-on-year in Q4FY26, while new project launches dropped a sharper 17%, according to a JM Financial report on India’s residential property market for March 2026. But with unsold inventory shrinking 5.1% over the same period, residential prices still rose 6.6%, slower than the double-digit gains of FY25.

Sales decline moderates but demand recovery remains gradual
Housing demand continued to ease in March 2026, though conditions were not as weak as in the preceding quarter.

Pan-India housing sales fell 7.0% year-on-year in March 2026 compared with a 9.9% decline recorded in December 2025. According to the brokerage, this points to some stabilisation in demand trends even as buyer activity remains softer than earlier growth phases.