Housing sales across India’s top seven cities declined sequentially in the January-March 2026 quarter as geopolitical tensions weighed on buyer sentiment, even as the market continued to show resilience
on a yearly basis.
Data released by ANAROCK Group showed that housing sales fell 7% quarter-on-quarter to about 1,01,675 units worth Rs 1.51 lakh crore in Q1 2026, compared with 1,08,970 units worth Rs 1.60 lakh crore in the preceding quarter.
However, on a yearly basis, sales rose 9%, indicating underlying strength in demand despite near-term disruptions. Sales value, too, declined 5% sequentially but increased 6% year-on-year.
The dip in sales coincided with heightened uncertainty triggered by the ongoing Middle East conflict, which has impacted global economic sentiment and input costs.
“While India’s residential segment’s long-term fundamentals remain strong, the short-term tremors of the Iran War were clearly visible in the first quarter,” said Anuj Puri, chairman of ANAROCK Group. “The 7% dip in sales tracks the war-induced uncertainty, with sentiment and sales clearly affected by surging oil and construction prices.”
He added that a section of overseas buyers, particularly from the West Asia, also adopted a wait-and-watch approach amid the evolving situation.
MMR, Bengaluru Lead; Chennai Sees Sharpest Dip
On a city-wise basis, Mumbai Metropolitan Region (MMR) and Bengaluru together accounted for nearly 48% of total housing sales during the quarter.
Chennai recorded the steepest quarterly decline at 18%, even as it posted the highest annual growth of 31%, reflecting a low base effect.
Other major markets such as Pune and NCR also saw sequential declines, while Hyderabad remained largely stable.
New Launches Outpace Sales
Developers, however, continued to push supply into the market.
New launches rose 2% quarter-on-quarter and 26% year-on-year to around 1,26,265 units in Q1 2026. MMR and Bengaluru alone accounted for over half of the new supply, while Hyderabad saw the sharpest sequential jump of 46%.
This divergence, where supply growth is outpacing sales, marks a reversal of the post-pandemic trend.
“New launches have started outpacing sales, reversing the post-pandemic pattern,” Puri said.
Inventory Builds Up Across Cities
As a result, unsold inventory rose both sequentially and annually. Total unsold stock across the top seven cities increased 4% quarter-on-quarter and 7% year-on-year to over 6.01 lakh units by the end of Q1 2026. Bengaluru saw the highest increase in inventory, followed by Hyderabad.
Prices Continue to Rise
Despite a moderation in sales, property prices continued to firm up. Average residential prices across the top cities rose 2% sequentially and 7% annually, with NCR and Bengaluru recording the sharpest yearly increases of over 15% and 8%, respectively. The rise was largely driven by increased supply in premium and luxury segments.
