Home sales jump 12%, but why are buyers flocking to these 3 cities?

Home sales across India's top seven cities rose 12% in the July-September quarter of 2026. But a closer look at the numbers reveals that demand is heavily concentrated in just three markets. Bengaluru, Mumbai and Pune together accounted for nearly 60% of all homes sold during the quarter. So, what makes these cities stand out?According to property consultancy JLL, residential sales across the country's top seven cities increased to 76,181 units in Q3 2026, compared with 67,974 units in the same period last year.Of these, the three cities together recorded 45,174 housing sales. Their combined share remained broadly unchanged from the year-ago quarter, underlining their continued importance in India's residential property market.However, the growth story differs across these markets. While Bengaluru saw a strong rise in sales, Mumbai largely held its ground and Pune witnessed a decline. BENGALURU LEADS, MUMBAI HOLDS GROUND, PUNE SEES A DIPBengaluru emerged as the strongest performer among the three cities. It recorded sales of 19,208 residential units in Q3 2026, up from 15,624 units in the year-ago period.Mumbai followed with 13,595 units sold. However, sales in the city were marginally lower than the 13,628 units recorded in Q3 2025. Pune recorded 12,371 housing sales during the quarter, compared with 13,863 units a year earlier, marking a decline of around 11%.The numbers show that while all three cities crossed the 12,000-unit mark, Bengaluru was the clear growth driver. Mumbai maintained its sales volumes, while Pune witnessed some moderation.WHY ARE THESE CITIES ATTRACTING HOMEBUYERS?One reason behind the strong housing market is the growing appetite for premium homes, particularly in the higher price brackets.Suresh HA, Managing Director of Bengaluru-based Sanjeevini Group, said the market was witnessing a strong shift towards premium housing, especially homes priced between Rs 1.5 crore and Rs 3 crore.He said Bengaluru continued to be one of the best-performing residential markets, with sales remaining healthy despite a contraction in new project launches."High-earning professionals and buyers in Bengaluru are no longer just looking for standard square footage. They are aggressively investing in premium, high-value assets that promise long-term lifestyle enhancement and capital preservation," Suresh said.He also pointed to rising property prices as an indication of strong end-user demand in the city.PREMIUM HOMES ARE CHANGING THE HOUSING MARKETThe preference for higher-value properties is not limited to Bengaluru. Across India's top seven cities, homes priced at Rs 1 crore and above accounted for 72% of total residential sales during January-September 2026, compared with 62% a year earlier.Sales in this segment grew 23% year-on-year, while the Rs 1.5 crore to Rs 3 crore category recorded a sharper 54% rise.Lalit Parihar, Managing Director of Gujarat-based Aaiji Group, said the improvement in residential sales reflected stronger buyer sentiment and confidence in the housing market.He said the growing contribution of premium housing showed that buyers were increasingly willing to move towards larger homes in better locations with improved amenities."The strong traction in the Rs 1.5-3 crore category reflects buyers' willingness to upgrade to larger, better-located and higher-quality homes, supported by income growth and long-term confidence in residential real estate," Parihar said.He added that demand remained concentrated in key markets such as Bengaluru, Mumbai and Pune, while developers were responding to changing buyer preferences through new launches.WHAT LIES AHEAD FOR THE HOUSING MARKET?The overall housing market appears to be on a recovery path. Residential sales across the top seven cities reached 2.14 lakh units during January-September 2026, registering 6% annual growth. This marks a turnaround from the 12% decline recorded during the same period last year.However, the recovery has not been uniform across price categories. Sales of homes priced below Rs 1 crore fell 23% during the nine-month period, highlighting the affordability challenges faced by budget-conscious buyers.JLL expects premium housing, particularly properties priced between Rs 1.5 crore and Rs 3 crore, to remain a key growth driver in the coming months.For developers, the challenge will be to match the rising appetite for premium homes with sustainable supply while ensuring that affordability does not take a back seat.For now, these three markets continue to account for a significant share of India's housing sales. The growing preference for premium homes appears to be an important part of the story, even as demand and sales trends vary from one city to another.- Ends