Housing sales across the top seven Indian cities declined 7 per cent quarter-on-quarter (Q-o-Q) in the first quarter of 2026 (Q1 2026), as the ongoing conflict in West Asia weighed on buyer sentiment, according to Anarock.
Approximately 101,675 units, valued at over Rs 1.51 trillion, were sold in Q1 2026, compared with 108,970 units worth Rs 1.60 trillion in Q4 2025.
On a year-on-year (Y-o-Y) basis, however, sales rose 7 per cent from over 93,280 units worth Rs 1.42 trillion in Q1 2025, reflecting a lower base.
Anuj Puri, chairperson, Anarock Group, said the dip reflected war-induced uncertainty.
“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. The 7 per cent dip in sales tracks the war-induced uncertainty, with sentiment and sales clearly affected by surging oil and construction prices – particularly in March,” he said.
He added that many Middle Eastern investors, who are active in Indian real estate, had paused purchases amid the conflict.
Mumbai Metropolitan Region (MMR) and Bengaluru together accounted for 48 per cent of total housing sales in the quarter.
Chennai recorded the highest Q-o-Q drop in sales at 18 per cent, though it also saw the strongest Y-o-Y growth at 31 per cent.
On the supply side, MMR and Bengaluru accounted for 51 per cent of new launches, while MMR, Hyderabad, Bengaluru, Pune and the National Capital Region (NCR) together made up 92 per cent of total additions.
New launches rose 2 per cent Q-o-Q to about 126,265 units in Q1 2026 and increased 26 per cent Y-o-Y, crossing 1 lakh units.
“Another key trend this quarter is that new launches have started outpacing sales, reversing the post-pandemic pattern when sales were usually higher,” Puri said.
Unsold inventory increased 4 per cent Q-o-Q and 7 per cent Y-o-Y to about 601,210 units across the top seven cities.
Bengaluru saw the highest Q-o-Q rise in unsold stock at 12 per cent, followed by Hyderabad at 7 per cent.
Average residential prices recorded mostly single-digit increases compared to Q1 2025, except in NCR, which saw about 15 per cent growth due to higher supply in luxury and ultra-luxury segments.
