Winning Bizness Desk

Mumbai.Residential housing sales across India's top seven cities dropped to their lowest level since January 2023 during the April-June quarter, as geopolitical tensions in the Middle East and global supply chain disruptions weakened buyer sentiment. According to real estate consultancy ANAROCK, housing sales declined despite fresh project launches increasing during the quarter, highlighting a cautious approach among homebuyers amid economic uncertainty.

Housing sales fall as sentiment weakens

ANAROCK data showed that residential sales in the April-June (Q2 2026) quarter fell 6% year-on-year to 90,715 units from 96,285 units sold during the same period last year. On a sequential basis, sales dropped 11%, making it the weakest quarterly performance since January 2023. The consultancy attributed the slowdown to uncertainty arising from the Iran conflict, disruptions in global supply chains and growing concerns over AI-driven job uncertainty in the IT and ITES sectors, prompting many buyers to postpone purchase decisions.

Key highlights:

• Residential sales declined 6% year-on-year to 90,715 units.
• Quarterly sales dropped 11% compared to the previous quarter.
• FY2026 housing sales stood at 4,04,005 units, the lowest since FY2023.
• Buyer sentiment remained under pressure due to multiple global and domestic factors.

Mixed performance across major cities

Among the top seven housing markets, only Kolkata, Hyderabad and Bengaluru registered annual growth in home sales. Kolkata led with a 10% increase, followed by Hyderabad at 2% and Bengaluru at 1%. Pune recorded the sharpest annual decline of 15% during the quarter. However, premium housing projects, GCC-driven employment hubs and infrastructure corridors continued to attract healthy demand, indicating that select segments of the market remained resilient despite the overall slowdown.

Mumbai Metropolitan Region (MMR) and Bengaluru together accounted for more than 48% of total housing sales across the top seven cities. Together, the two markets sold nearly 43,995 units during Q2 2026, reinforcing their position as the country's strongest residential markets.

Market trends at a glance:

• Kolkata recorded the highest sales growth at 10%.
• Pune witnessed the steepest annual decline of 15%.
• MMR and Bengaluru together contributed over 48% of total sales.
• Premium housing and infrastructure-linked locations continued to perform well.

New launches remain strong despite slowdown

While home sales weakened, developers continued launching new projects. New residential launches increased 7% year-on-year to nearly 1,06,000 units compared with 98,625 units in Q2 2025. MMR and Bengaluru dominated fresh supply, accounting for 53% of all new launches, while MMR, Pune, Hyderabad and Bengaluru together contributed 81% of the country's total new inventory.

Bengaluru witnessed a sharp 41% annual rise in new supply, although launches were down 11% sequentially. MMR posted a 23% year-on-year increase in fresh supply but recorded a 14% quarter-on-quarter decline. ANAROCK Chairman Anuj Puri said several large listed developers launched projects on sizeable land parcels acquired in 2025, helping maintain strong annual launch numbers. However, on a quarterly basis, fresh supply across the top seven cities declined 16% as developers slowed launches in response to weaker buyer sentiment.

Prices rise as unsold inventory expands

Despite slower sales, residential prices continued to move upward. Average home prices across the top seven cities increased 1% sequentially and 7% year-on-year, although the pace of appreciation moderated from the double-digit growth witnessed last year. Delhi-NCR recorded the highest annual price increase of 13%, followed by Bengaluru with an 8% rise.

Unsold housing inventory also expanded significantly. Total inventory across the seven major cities crossed 6.16 lakh units by the end of Q2 2026, compared with 5.62 lakh units a year earlier, reflecting a 10% annual increase. Bengaluru reported the highest rise in unsold stock, with inventory increasing 34% from around 58,890 units at the end of Q2 2025 to nearly 79,180 units by the end of Q2 2026.

Key takeaways:

• Average residential prices rose 7% annually across top cities.
• Delhi-NCR led price appreciation with a 13% increase.
• Unsold inventory crossed 6.16 lakh units.
• Bengaluru registered the highest inventory growth at 34%.
• Inventory refers to completed or under-construction homes available for sale but yet to be sold.

According to ANAROCK, the housing market is currently facing pressure from three major factors: the ongoing conflict in the Middle East, disruptions in global supply chains and rising employment uncertainty in the IT sector due to rapid AI adoption. These developments have collectively weakened buyer confidence, resulting in delayed purchasing decisions even as developers continue to bring fresh housing projects to the market.