The ongoing US-Iran war has dampened the real estate market, with sales across the top seven cities falling 7% in Q1 2026 compared to the previous quarter, according to ANAROCK Research. Chennai saw the sharpest quarterly drop in housing sales by almost 18%, even as it posted the highest annual growth, followed by Pune at 10%.
The data indicates that Q1 2026 saw a 7% drop in sales across the top 7 cities against Q4 2025. Approximately 1,01,675 units worth ₹1.51 lakh crore were sold in Q1 2026 in the top cities, compared with approximately 1,08,970 units worth ₹1.60 lakh crore in Q4 2025. City-wise, MMR and Bengaluru accounted for 48% of total sales in this quarter.
MMR recorded the highest housing sales of approximately 32,800 units in Q1 2026, down 6% from Q4 2025. Approximately 34,725 units were sold in Q4 2025. Bengaluru saw housing sales decrease by 5% in Q1 2026 against Q4 2025, with approximately 16,440 units sold in Q1 2026 and approximately 17,250 units sold back in the preceding quarter
Pune saw approximately 15,300 units sold in Q1 2026, down 10% from Q4 2025, when approximately 17,000 units were sold.
NCR saw an 8% quarterly drop in housing sales, from approximately 16,525 units in Q4 2025 to approximately 15,190 units in Q1 2026
Hyderabad recorded sales of approximately 12,425 units in Q1 2026, similar to Q4 2025, when approximately 12,435 units were sold
Chennai saw approximately 5,310 units sold in Q1 2026 – an 18% quarterly drop over Q4 2025, when approximately 6,460 units were sold, and Kolkata saw an 8% decrease in housing sales in the period, from approximately 4,575 units in Q4 2025 to approximately 4,210 units in Q1 2026, the document showed.
Hyderabad records the highest number of new launches
The top 7 cities recorded 1,26,265 new units launched in Q1 2026, against 1,23,835 units in Q4 2025 and 1,00,020 units in Q1 2025, increasing by 2% and 26%, respectively.
Hyderabad recorded the highest 46% Q-o-Q jump in new supply, followed by Bengaluru with 7% and MMR with 6% quarterly rise; Pune, NCR, Chennai and Kolkata see Q-o-Q drop in new launches, it said.
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NCR and Bengaluru record the highest annual price jumps of over 15% and 8%
Average residential property prices across the top 7 cities largely saw single-digit jumps over the last year, with the notable exception of NCR, which recorded double-digit price growth of 4-15% in Q1 2026 compared to Q1 2025. This was mainly due to increased new supply in the luxury and ultra-luxury segments. NCR and Bengaluru recorded the highest annual price jumps of over 15% and 8%, respectively.
Homes priced at ₹1.5–2.5 crore account for 32% of the new supply, while those above ₹2.5 crore account for 20%. Units in the ₹80 lakh–1.5 crore range make up 25%, ₹40–80 lakh – 12%, and below ₹40 lakh just 10%, the data showed.
Unsold inventory in top 7 cities up 4% Q-o-Q & 7% Y-o-Y – over 6.01 lakh units by Q1 2026-end; Bengaluru sees the highest Q-o-Q & Y-o-Y increases (12% and 24% respectively).
“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,” said Anuj Puri, Chairman, ANAROCK Group.
“Another key trend this quarter is that new launches have started outpacing sales, reversing the post-pandemic pattern when sales were usually higher,” adds Puri. “As a result, unsold inventory has increased 4% quarter-on-quarter and 7% year-on-year, with total stock across the top 7 cities now above 6 lakh units.”
