Mumbai, March 2026 – India’s residential market across the top seven cities saw a 7% quarterly decline in housing sales in Q1 2026, with approximately 1,01,675 units worth ₹1.51 lakh crore sold compared to 1,08,970 units worth ₹1.60 lakh crore in Q4 2025, according to ANAROCK Research. However, on a year-on-year basis, sales rose 9% from 93,280 units worth ₹1.42 lakh crore in Q1 2025, confirming that the underlying demand cycle remains intact even as near-term sentiment has been affected. According to ANAROCK Group Chairman Anuj Puri, “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% dip in sales tracks the war-induced uncertainty, with sentiment and sales clearly affected by surging oil and construction prices particularly in March. The decline also aligns with large numbers of prospective Middle Eastern homebuyers, who invest significantly in Indian real estate, hitting the pause button under the war cloud.”
City-by-City: Chennai Leads Drops, MMR and Bengaluru Anchor Demand
MMR and Bengaluru accounted for 48% of total sales in Q1 2026. Chennai recorded the highest quarterly drop of 18% in housing sales, but also saw the highest yearly gain of 31%. NCR new supply decreased by 17% against Q4 2025, with approximately 15,985 units launched notably, 53% of NCR’s new supply was priced above ₹2.5 crore, reflecting the corridor’s continued premiumisation. Pune added approximately 16,000 units in Q1 2026 an 87% share in the mid and premium segments. Hyderabad emerged as the fastest-growing market on new supply, registering a sharp 46% sequential increase of approximately 19,280 units launched, over 74% priced above ₹1.5 crore.
A Structural Shift: Launches Now Outpacing Sales
New housing launches rose marginally by 2% quarter-on-quarter to approximately 1,26,265 units in Q1 2026 and surged 26% year-on-year. MMR and Bengaluru led new supply additions, contributing 51% of total launches. For the first time since the pandemic, new launches have begun outpacing sales, reversing a post-2020 trend where robust demand consistently absorbed supply faster than developers could add it.
Following the significant jump in new launches, available inventory in the top seven cities increased by 4% quarterly and 7% annually from approximately 5,76,620 units by Q4 2025-end to approximately 6,01,210 units as of Q1 2026-end. Among the top cities, Bengaluru saw the highest quarterly rise of 12% in its unsold stock, followed by Hyderabad with a 7% rise.
