**Launch Activity — Q1 2026 vs Q1 2025** Residential project launches across the big three South Indian metros accelerated in Q1 2026, driven by sustained end-user demand and improved construction financing conditions. | City | Q1 2025 Launches | Q1 2026 Launches | Change | |------|-----------------|-----------------|--------| | Chennai | 8,420 units | 10,900 units | +29% | | Hyderabad | 14,200 units | 18,600 units | +31% | | Bengaluru | 16,800 units | 22,100 units | +32% | | Coimbatore | 2,100 units | 3,200 units | +52% | Coimbatore's outsized growth reflects its emergence as a mainstream IT city, with buyers and investors increasingly treating it as a Tier-1 market. **Unsold Inventory** Despite strong launches, inventory buildup has been controlled by robust absorption: - Chennai: 18 months of unsold inventory (healthy range: 12–24 months) - Hyderabad: 22 months (slightly elevated in the luxury segment) - Bengaluru: 19 months - Coimbatore: 11 months (extremely tight — undersupplied market) **Price Growth (Y-o-Y)** Chennai overall: +11.2% - OMR corridor: +14.8% - North Chennai: +7.3% Hyderabad overall: +12.6% - Financial District: +18.2% - Secunderabad: +6.4% Bengaluru overall: +10.8% - North Bengaluru: +14.6% - Whitefield: +13.1% **Segment Analysis** The mid-segment (₹50 lakh–₹1.2 Cr) continues to outperform both the affordable segment (below ₹45 lakh) and luxury segment (above ₹3 Cr) in terms of both launch volumes and absorption velocity. The affordable segment faces cost pressures as construction material costs (cement up 8%, steel up 11% Y-o-Y) make sub-₹45 lakh pricing increasingly difficult to maintain. **Outlook for Q2–Q3 2026** - Interest rates are expected to remain stable through mid-2026 (RBI guidance) - The implementation of REITs for smaller developers (announced in the Union Budget) may improve liquidity in the market - General infrastructure spending (metro expansions, expressway completions) continues to be the single biggest driver of localised price appreciation