Mumbai, Mar 27: India’s residential real estate market witnessed a temporary slowdown in the first quarter of 2026, with housing sales across the top seven cities declining by 7% quarter-on-quarter, according to the latest data released by ANAROCK Property Consultants Pvt. Ltd.. However, on a year-on-year basis, the market continued to show resilience, recording a 7% increase in sales.
Approximately 1,01,675 housing units worth INR 1.51 lakh crore were sold in Q1 2026, compared to nearly 1,08,970 units worth INR 1.60 lakh crore in Q4 2025. In contrast, Q1 2025 saw around 93,280 units sold, highlighting a steady annual growth trend despite short-term fluctuations.
The report attributes the quarterly dip to global geopolitical developments, particularly the ongoing Middle East conflict, which impacted buyer sentiment and increased input costs such as oil and construction materials.
Market Dynamics and Key Trends
The Mumbai Metropolitan Region (MMR) and Bengaluru collectively accounted for nearly 48% of total housing sales during the quarter. While Chennai recorded the steepest quarterly decline of 18%, it also posted the highest annual growth at 31%, reflecting strong underlying demand.
New housing supply saw a marginal 2% quarterly rise but surged 26% year-on-year, reaching approximately 1,26,265 units in Q1 2026. MMR and Bengaluru dominated new launches, contributing 51% of total supply.
Hyderabad stood out with the highest quarterly growth in new launches at 46%, while cities like Chennai, NCR, Kolkata, and Pune witnessed declines in new supply.
Inventory Levels on the Rise
With new launches outpacing sales, unsold inventory across the top seven cities increased by 4% quarter-on-quarter and 7% annually, reaching over 6.01 lakh units by the end of Q1 2026. Bengaluru recorded the highest increase in unsold stock, followed by Hyderabad.
Expert Commentary
Commenting on the trends, Anuj Puri, Chairman of ANAROCK Group, said:
“While India’s residential real estate fundamentals remain strong, the short-term impact of global uncertainties—particularly the Middle East conflict—was visible in Q1 2026. The 7% dip in sales reflects cautious buyer sentiment and rising costs. Notably, new launches have begun to outpace sales, reversing the post-pandemic trend and leading to a rise in unsold inventory.”
He further added that a significant number of Middle Eastern investors, who play a key role in India’s real estate market, have temporarily paused investments amid geopolitical instability.
Outlook
Residential property prices across most cities recorded modest single-digit annual growth. NCR led with double-digit price appreciation driven by increased supply in luxury and ultra-luxury segments, while Bengaluru also posted notable gains.
Despite short-term headwinds, the Indian real estate sector continues to demonstrate long-term resilience, supported by strong demand fundamentals, urbanisation trends, and infrastructure development.
As the market transitions, factors such as supply-demand balance, global economic stabilit
