Investors have also lost sleep due to the upheaval in the Indian stock market over the past few weeks. The sale on Dalal Street, which has been running for eight consecutive weeks, has broken the record of the last 25 years. Due to the continuous withdrawal of foreign institutional investors (FIIs), in just one week investors lost around Rs. 20 lakh crores has been lost. So far in the year 2026, the Indian stock market (Sensex and Nifty) has recorded a major decline of around 15%. Seeing this decline in the market, people who are preparing to buy a house are now feeling fear. According to a report by real estate data analytics firm PropEquity, home sales in the country’s top 9 cities fell by 6 percent year-on-year to just 1,03,170 houses sold in the third quarter (Q3) of 2026.

Sales fall in 9 major cities, big break in supply

Compared to the previous quarter (Q2), Q3 saw a 4 percent slowdown in home sales. At the same time, new project launches have fallen by a whopping 15 percent. While 1,15,010 new houses were launched in the second quarter, the figure fell to 98,165 units in the third quarter.

Interestingly, despite the reduction in supply, the total consumption in the market i.e. sales of houses remained above 1 lakh units. This means that the number of houses sold was about 5,000 units more than the number of newly launched houses. If seen city-wise, there has been a sharp drop in new project launches in Thane by 28 per cent, Chennai by 22 per cent, Delhi-NCR by 19 per cent and Pune by 17 per cent.

Buyers hesitate to make decisions

This slowdown in the property market is not only due to fear of the stock market, but rising house prices are also a major reason. Residential property prices have increased significantly in recent times. In such a situation buyers have now become more conscious about their pocket and budget. The biggest impact was seen in Chennai and Pune, where year-on-year sales fell by 17 percent and 16 percent, respectively. Apart from this, house sales have also declined in major markets like Thane, Mumbai and Delhi-NCR.

According to County Group Director Amit Modi, this cannot be called a complete loss of demand. He believes that the second quarter was very strong, so it was only natural that there would be some softness in the third quarter. However, he also acknowledges that rising prices have made buyers more value and budget conscious. People are no longer taking hasty decisions, but are thinking carefully before investing money in any project.

Quite the opposite trend in Hyderabad

The real estate market mood is not the same in all cities. While sales have slowed down in Pune, Chennai and Thane, Hyderabad has taken a completely different pace. Hyderabad recorded a huge increase of 68 percent in new project launches year-on-year, while sales there also increased by 11 percent. Apart from this, sales have also increased in Navi Mumbai, while the Bengaluru market has been completely stagnant.

Homeland Group CEO Umang Jindal believes that the Hyderabad figures make it clear that the demands of the entire city do not apply equally to every project. He said that as prices have increased, buyers are taking a deeper look into whether the project is truly luxurious and worth the price. Demand for projects that are in the right location and offer something different is still strong. While simple projects are taking time to get customers. Therefore, developers now have to dictate supply according to local micro-markets and consumer preferences rather than larger city trends.

Looking ahead to the festive season, demand is expected to improve

All hopes of the real estate sector are pinned on the upcoming festive season. This season will determine whether the slowdown in Q3 was just a temporary hiatus or a permanent shift in buyer attitudes. Arhant Dinesh, Managing Director, Krishnavi Group, says that the property market in India is largely associated with good times and emotions. Customers usually look forward to special offers during the festive season. Also, after children’s exams and during holidays, families get together and decide to buy a house. In such a situation, there is every hope that the sales will pick up again during the festive season.