Housing sales across India's top seven cities declined 6% year-on-year in the April-June quarter of 2026 as geopolitical tensions in West Asia, supply chain disruptions and uncertainty in the IT sector weighed on homebuyer sentiment, according to ANAROCK Research.
Residential sales stood at approximately 90,715 units in Q2 2026, compared with 96,285 units in the corresponding quarter last year. On a sequential basis, sales declined 11% from about 1.02 lakh units recorded in Q1 2026.
Despite weaker demand, developers remained aggressive on project launches. New housing supply rose 7% year-on-year to around 1.06 lakh units during the quarter from approximately 98,625 units a year earlier. However, launches were down 16% compared with the previous quarter, indicating that developers turned more cautious amid softening demand.
The Mumbai Metropolitan Region (MMR) and Bengaluru continued to dominate the residential market, accounting for nearly 48% of total housing sales and 53% of new launches across the top seven cities during the quarter.
Among individual markets, Kolkata (10%), Hyderabad (2%), and Bengaluru (1%) were the only cities to register annual growth in housing sales. Pune witnessed the sharpest decline, with sales falling 15% year-on-year.
"The readings are along expected lines, as the Middle East war's impacts on the entire sector were all too obvious," said Anuj Puri, Chairman, ANAROCK Group.
"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. Notably, the strongest demand is now visible in premium housing, GCC-led employment hubs and infrastructure-driven corridors. At the same time, disruptions caused by the Middle East conflict and AI-related uncertainties in the IT/ITeS sector have pushed more buyers to adopt a wait-and-watch approach," he added.
Puri said new project launches remained resilient on an annual basis as several large listed developers rolled out projects on land parcels acquired during 2025. However, quarterly launches moderated as developers responded to weakening buyer sentiment.
MMR, Bengaluru lead supply
MMR recorded the highest new supply, with approximately 34,555 units launched during the quarter, up 23% from a year earlier, although launches declined 14% sequentially. More than 57% of the new inventory was priced below Rs 1.5 crore.
Bengaluru added around 21,670 units, marking a robust 41% annual increase, while quarterly launches declined 11%. Nearly 96% of the new supply in the city was concentrated in the premium and luxury housing segments priced above Rs 80 lakh.
Hyderabad posted the strongest growth in launches among all cities, with supply rising 53% year-on-year to nearly 16,970 units, while Kolkata recorded a 42% increase. In contrast, NCR witnessed a 40% decline in new launches, and Chennai saw supply fall 38% from a year ago.
Premium housing dominates new launches
Developers continued to focus on premium housing during the quarter.
Homes priced between Rs 80 lakh and Rs 1.5 crore accounted for the largest share of new launches at 27%, followed by the Rs 1.5 crore-Rs 2.5 crore segment with 25%. Luxury homes priced above Rs 2.5 crore contributed another 22%, while mid-income housing priced between Rs 40 lakh and Rs 80 lakh accounted for 19% of total launches.
Affordable housing, priced below Rs 40 lakh, continued to shrink, contributing just 6% of fresh supply across the top seven cities.
Price growth moderates
Residential property prices continued to rise, although the pace of appreciation slowed.
Average prices across the top seven cities increased 7% year-on-year, while quarterly growth remained modest at 1%.
The National Capital Region (NCR) recorded the highest annual price appreciation of 13%, followed by Bengaluru with an 8% increase.
Inventory rises
Available housing inventory across the top seven cities increased 10% year-on-year to more than 6.16 lakh units by the end of Q2 2026.
Bengaluru registered the sharpest increase in unsold inventory, rising 34% over the past year, while NCR was the only major market where inventory levels remained largely unchanged.
