Headline: Housing sales dip 7% QoQ in top 7 cities in Q1 2026, but rise 9% YoY
Housing sales across India’s top seven cities declined sequentially in the first quarter of 2026, even as annual growth remained positive, reflecting the impact of global uncertainties alongside resilient underlying demand.
According to ANAROCK Research, approximately 1,01,675 units worth over ₹1.51 lakh crore were sold across the top cities in Q1 2026, compared to around 1,08,970 units worth ₹1.60 lakh crore in Q4 2025, marking a 7% quarter-on-quarter decline. However, on a year-on-year basis, sales rose by 9% from over 93,280 units worth ₹1.42 lakh crore recorded in Q1 2025. In value terms, housing sales declined 5% sequentially but increased 6% annually.
Mumbai Metropolitan Region (MMR) and Bengaluru together accounted for nearly 48% of total housing sales during the quarter. Chennai stood out with the highest quarterly decline of 18% in sales, while also recording the strongest annual growth of 31%.
New housing supply remained steady, with launches rising 2% quarter-on-quarter and 26% year-on-year to approximately 1,26,265 units in Q1 2026, compared to 1,23,835 units in the previous quarter and over 1,00,020 units in the same period last year. MMR and Bengaluru led supply additions, contributing 51% of total new launches. Hyderabad recorded the highest quarterly growth in new supply at 46%, followed by Bengaluru (7%) and MMR (6%), while cities such as Pune, NCR, Chennai and Kolkata saw declines.
The surge in new launches led to an increase in unsold inventory, which rose 4% sequentially and 7% annually to over 6.01 lakh units by the end of Q1 2026. Bengaluru reported the highest rise in unsold inventory, with a 12% quarterly increase and 24% yearly growth.
Price trends remained firm despite the slowdown in sales volumes. Average property prices across the top seven cities increased 2% quarter-on-quarter and 7% year-on-year, with NCR and Bengaluru witnessing the highest annual appreciation of 15% and 8%, respectively.
Segment-wise, homes priced between ₹1.5 crore and ₹2.5 crore accounted for 32% of new supply, followed by units priced above ₹2.5 crore at 20%. Mid-segment homes priced between ₹80 lakh and ₹1.5 crore contributed 25%, while the ₹40–80 lakh segment made up 12% and units below ₹40 lakh accounted for just 10% of supply.
Commenting on the trend, Anuj Puri, Chairman of ANAROCK Group, said the ongoing Middle East conflict had a visible impact on housing demand during the quarter. He noted that rising oil prices, higher construction costs and uncertainty among buyers, including investors from the Middle East, contributed to the slowdown. He also highlighted that new launches have started outpacing sales, reversing the post-pandemic trend, leading to a rise in overall inventory levels.
While short-term sentiment has been affected, the data suggests that the residential real estate market continues to show resilience, supported by steady price growth and strong annual demand trends.