The ongoing West Asia crisis has had a noticeable impact on India’s real estate market, with housing sales witnessing a sequential decline in the first quarter of calendar year 2026 (Q1 2026) compared to the preceding quarter.
According to the latest Anarock Research data, housing sales across the top seven cities fell by 7% quarter-on-quarter. Approximately 1,01,675 units worth ₹1.51 lakh crore were sold in Q1 2026, compared to around 1,08,970 units worth ₹1.60 lakh crore in Q4 2025.
City-Wise Performance Trends
On a city-level analysis, Mumbai Metropolitan Region (MMR) and Bengaluru together accounted for 48% of total housing sales during the quarter. Chennai recorded the sharpest decline, with an 18% drop in quarterly sales.
New Launches See Marginal Growth
New housing launches across the top seven cities posted modest growth of 2% in Q1 2026 over the previous quarter.
MMR and Bengaluru led supply additions, contributing 51% of the total new launches. MMR recorded a 6% increase in new supply, while Bengaluru saw a 7% rise. In contrast, Chennai, NCR, Kolkata, and Pune witnessed declines in new launches by 28%, 17%, 10%, and 9%, respectively.
Among other cities, Hyderabad stood out with the highest growth, recording a 46% surge in new supply during the quarter.
Impact Of Global Tensions
Anarock Group Chairman Anuj Puri said, “While the long-term fundamentals of India’s residential real estate market remain strong, the short-term impact of the Iran war was evident in the first quarter. The 7% dip in sales reflects war-induced uncertainty, with buyer sentiment affected by rising oil and construction costs, particularly in March. Additionally, a large segment of West Asian investors, who significantly contribute to Indian real estate, adopted a wait-and-watch approach amid the geopolitical tensions.”
New Launch Overview
The top seven cities collectively recorded around 1,26,265 new units launched in Q1 2026, compared to 1,23,835 units in Q4 2025, marking a 2% increase.
Key contributors to new supply during the quarter were MMR, Hyderabad, Bengaluru, Pune, and NCR, which together accounted for 92% of total launches.
Overall Sales Overview
Total housing sales stood at around 1,01,675 units in Q1 2026, down from 1,08,970 units in Q4 2025, reflecting a 7% quarter-on-quarter decline. However, on a year-on-year basis, sales rose by 9% compared to Q1 2025.
NCR, MMR, Bengaluru, Pune, and Hyderabad together contributed 91% of total sales during the quarter.
Price Movement Trends
Average residential property prices across the top seven cities largely recorded single-digit annual growth, with NCR being the notable exception.
NCR witnessed double-digit price appreciation, driven by increased supply in the luxury and ultra-luxury segments. Overall price growth ranged between 4% and 15% in Q1 2026 compared to the same period last year. NCR and Bengaluru recorded the highest annual price increases of over 15% and 8%, respectively.