Persistent uncertainty arising from the West Asia conflict and the resulting supply chain disruptions dampened India’s residential real estate market in the second quarter of 2026, with housing sales across the top seven cities declining 6% year-on-year, according to Anarock Research.
Approximately 90,715 housing units were sold during April-June 2026, compared with around 96,285 units in the corresponding quarter last year. On a sequential basis, sales declined 11%.
Mumbai Metropolitan Region (MMR) and Bengaluru continued to dominate the market, accounting for more than 48% of total sales with a combined absorption of nearly 43,995 units during the quarter.
Only three cities register annual sales growth
Among the seven major cities, only Kolkata, Hyderabad and Bengaluru recorded year-on-year growth in housing sales during the quarter, rising 10%, 2% and 1%, respectively.
Pune witnessed the sharpest annual decline, with residential sales dropping 15%.
New launches rise despite softer demand
Despite moderation in sales, developers remained active, launching around 1,06,000 new residential units in Q2 2026, up 7% from approximately 98,625 units in the same period last year.
MMR and Bengaluru together accounted for 53% of the total new housing supply introduced across the top seven cities.
MMR recorded a 23% year-on-year increase in new launches, although supply declined 14% compared with the previous quarter. More than 57% of the new inventory was priced below ₹1.5 crore.
Bengaluru posted a 41% annual increase in new launches despite an 11% sequential decline, with nearly 96% of the new supply concentrated in the premium and luxury housing segments priced above ₹80 lakh.
Hyderabad saw new launches surge 53% year-on-year despite a 12% quarterly decline, while Kolkata recorded a 42% annual increase in fresh supply.
In contrast, new launches declined sharply in NCR, Chennai and Pune. NCR witnessed a 40% year-on-year drop in launches, with 61% of the new supply concentrated in the luxury segment priced above ₹1.5 crore. Chennai recorded a 38% decline in fresh supply, while Pune saw launches fall 10% annually.
Overall, MMR, Pune, Hyderabad and Bengaluru together contributed 81% of all new residential launches during the quarter.
Premium housing continues to drive demand
Anarock Group Chairman Anuj Puri said the market trends were largely in line with expectations given the disruptions caused by the West Asia conflict.
“These readings are along expected lines, as the Middle East war’s impacts on the entire sector were all too obvious. Reasons aside, what we have currently is a more balanced housing market where new supply is catching up with absorption as sales growth moderated across most top cities,” he said.
Puri noted that premium housing, GCC-led employment hubs and infrastructure-driven corridors continue to lead demand. However, he added that disruptions caused by the West Asia conflict, coupled with AI-related uncertainties affecting the IT and ITeS sector, have prompted many prospective homebuyers to delay purchase decisions.
Price growth moderates
Average residential prices across the top seven cities increased by just 1% sequentially during the quarter, while annual price appreciation stood at 7%, indicating moderation from the double-digit growth witnessed last year.
NCR recorded the highest annual price increase at 13%, followed by Bengaluru with an 8% rise.
Inventory continues to build up
Available housing inventory across the top seven cities rose 10% year-on-year to more than 6.16 lakh units by the end of Q2 2026, compared with approximately 5.62 lakh units a year earlier.
Bengaluru registered the sharpest increase in unsold inventory, which climbed 34% to around 79,180 units from nearly 58,890 units at the end of Q2 2025.