India’s residential real estate sector may face a major execution challenge in 2026 as the ongoing conflict in West Asia threatens to disrupt global supply chains, inflate commodity prices and increase logistics costs, according to Anarock.
Despite resilient end-user demand and improved project financing conditions, developers could struggle to meet delivery timelines if geopolitical tensions persist, particularly as a record number of homes are slated for completion next year.
Record delivery pipeline
Anarock Research estimates that 5,40,400 housing units are scheduled for completion across the top seven Indian cities in 2026, making it the highest delivery year in the last decade.
Anarock Group, Executive Director & Head – Research & Advisory, Prashant Thakur, said, “Latest Anarock research data reveals that a record 5,40,400 housing units are scheduled for completion across the top 7 cities in 2026, the highest in the last decade. Of the total scheduled deliveries, the western markets of MMR and Pune collectively account for 57% of homes due for completion this year.”
Among the key markets, Mumbai Metropolitan Region (MMR) is expected to see the delivery of around 2,07,300 units, while Pune has approximately 1,00,300 units lined up for completion.
In South India, Bengaluru is expected to account for 69,000 units, Hyderabad 63,700 units and Chennai 35,600 units. NCR has about 39,000 units scheduled for completion, while Kolkata is expected to see the delivery of 22,500 units.
Lessons from the pandemic
According to Anarock, ambitious housing delivery pipelines have historically been vulnerable to external disruptions. Thakur, said, “Historically, ambitious housing supply pipelines have often been vulnerable to external shocks like these. During the pandemic year of 2020, approximately 4.66 lakh homes were scheduled for completion across the top seven cities. However, only about 2.14 lakh units, or 46% of the planned pipeline, were ultimately delivered as construction came to a halt due to lockdowns, labour migration, and supply-chain disruptions.”
The research highlights that even projects in advanced stages of construction can face delays when confronted with large-scale disruptions.
Rising cost pressures
While the current situation differs from the pandemic as construction activity remains operational and labour availability is stable, a prolonged geopolitical conflict could significantly impact project economics.
Developers may have to contend with higher energy prices, increased freight costs and inflation in critical construction inputs such as steel, aluminium, copper, electrical equipment and building systems.
Thakur, said, “Cities with the largest completion pipelines, specifically MMR, Pune and Bengaluru, are particularly sensitive to sustained input cost inflation, as developers must maintain delivery schedules and simultaneously manage margin pressures.”
He added that although stronger balance sheets, technology-led project monitoring and tighter regulatory oversight under RERA provide some support, developers remain exposed to uncertainties stemming from the ongoing conflict.
Shift from sales to execution
Anarock Research data shows that nearly 30.5 lakh housing units were delivered across the top seven cities between 2017 and 2025. The 5.4 lakh units scheduled for delivery in 2026 represent the largest annual completion target in the past decade.
The sizeable pipeline reflects the strong housing launches and sales momentum witnessed in the post-pandemic period, particularly between 2021 and 2023. Many of these projects are now entering the final stages of construction.
Thakur, said, “While the industry in the last few years celebrated robust sales, rising prices, and renewed buyer confidence, the spotlight is now shifting from sales to execution.”
According to Thakur, 2026 could emerge as a landmark year for housing completions if developers successfully navigate supply-chain challenges and maintain delivery schedules. He noted that the year will serve as a crucial test of the residential real estate sector’s execution capabilities and maturity.