Housing sales across India's top seven cities declined 6% year-on-year in the April-June quarter of 2026, with residential sales standing at approximately 90,715 units compared with 96,285 units in the corresponding quarter last year. According to ANAROCK Research, on a sequential basis, sales also declined 11% from about 1.02 lakh units recorded in Q1 2026. The decline was attributed to geopolitical tensions in West Asia, supply chain disruptions and uncertainty in the IT sector weighing on homebuyer sentiment. As per Mint, the Middle East war's impacts on the entire sector were all too obvious, with reasons aside, the market currently has a more balanced housing market with new supply catching up with absorption as sales growth moderated across most top cities.
Despite weaker demand, developers remained aggressive on project launches, with new housing supply rising 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. According to Mint, MMR, Pune, Hyderabad, and Bengaluru together accounted for nearly 81% of the total new housing supply during the quarter, with MMR leading new launches at approximately 34,555 units, reflecting a 23% year-on-year increase despite a 14% decline from the previous 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 from 15,410 units in Q2 2025 to 13,090 units in Q2 2026. Chennai recorded a 9% year-on-year decline in unit absorption, while major centres including the National Capital Region (NCR) and MMR saw 6% and 8% year-on-year declines respectively. MMR recorded the highest new supply with approximately 34,555 units launched during the quarter, marking a 23% annual increase, while Bengaluru added around 21,670 units, marking a robust 41% annual increase. Delhi-NCR recorded a 6% annual decline in housing sales with transactions falling to 13,365 units from 14,255 units a year earlier.
Developers continued to focus on premium housing during the quarter, with homes priced between ₹80 lakh and ₹1.5 crore accounting for the largest share of new launches at 27%, followed by the ₹1.5 crore-₹2.5 crore segment with 25%. Luxury homes priced above ₹2.5 crore contributed another 22%, while mid-income housing priced between ₹40 lakh and ₹80 lakh accounted for 19% of total launches. Affordable housing, priced below ₹40 lakh, continued to shrink, contributing just 6% of fresh supply across the top seven cities. Market watchers said the strongest sales growth is now in premium housing, global capability centre-led (GCC-led) employment hubs and infrastructure-driven corridors. According to Mint, nearly 96% of Bengaluru's new supply was concentrated in premium and luxury projects priced above ₹80 lakh, while Hyderabad introduced approximately 16,970 units with around 82% in premium and luxury housing priced between ₹80 lakh and ₹2.5 crore.
Residential property prices continued to rise, with average prices across the top seven cities increasing 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. 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, with Bengaluru registering the sharpest increase in unsold inventory rising 34% over the past year. As per Mint, the Middle East war's disruptions and AI-related uncertainties in the IT/ITeS sector have pushed more buyers onto the fence, contributing to the current market balance.
