Housing Sales Dip 7% Q-o-Q in Top 7 Cities in Q1 2026, But Rise 9% Y-o-Y
The ongoing Middle East war had a predictable impact on the Indian real estate market. Housing sales in the first quarter witnessed a downward trend against the preceding quarter. Latest ANAROCK Research data indicates that Q1 2026 saw a 7% drop in sales across the top 7 cities against Q4 2025. Approx. 1,01,675 units worth INR 1.51 lakh Cr were sold in Q1 2026 in the top cities, in contrast to approx. 1,08,970 units worth INR 1.60 Lakh Crore in Q4 2025.
However, given the low housing sales base in the corresponding period last year, Q1 2026 marked a 7% annual rise in sales across the top 7 cities. Back in Q1 2025, approx. 93,280 units worth INR 1.42 Lakh Crore were sold in these cities. Thus, housing sales value is down by 5% Q-o-Q but have risen 6% annually.
City-wise, MMR and Bengaluru accounted for 48% of total sales in this quarter. Interestingly, Chennai recorded the highest (18%) quarterly drop in housing sales, but also saw the highest yearly gain of 31%
Meanwhile, new launches across the top 7 cities saw a limited quarterly growth of 2% in Q1 2026 against the previous quarter, and a 26% yearly rise – from 1,23,835 units in Q4 2025 to approx. 1,26,265 units in Q1 2026 and over 1 lakh units back in Q1 2025.
MMR and Bengaluru saw the maximum new supply in Q1 2026, accounting for 51% of the total new launches across the top 7 cities. While MMR saw new supply increase by 6% on a quarterly basis, Bengaluru saw a 7% jump in the period. Chennai, NCR, Kolkata and Pune saw a quarterly decline in new supply – by 28%, 17%, 10%, and 9%, respectively. The other cities saw quarterly increases in new launches, with Hyderabad recording the highest 46% quarterly supply rise.
Following the significant jump in new launches in the quarter, available inventory in the top 7 cities increased by 4% quarterly and 7% annually – from approx. 5,76,620 units by Q4 2025-end to approx. 6,01,210 units as of Q1 2026-end. Among the top cities, Bengaluru saw the highest quarterly rise of 12% in its unsold stock, followed by Hyderabad with a 7% rise.
Anuj Puri, Chairman – ANAROCK Group, says, “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.”
“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.”
New Launch Overview
The top 7 cities recorded around 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. The key cities contributing to new launches in Q1 2026 were MMR (Mumbai Metropolitan Region), Hyderabad, Bengaluru, Pune, and NCR (National Capital Region) which together accounted for 92% of the quarter's supply addition.
* MMR saw approx. 40,015 units launched in Q1 2026 – a 6% increase over Q4 2025. More than 57% of the new supply was added in the sub-INR 1.5 Cr budget segment.
* Bengaluru added approx. 24,370 units in Q1 2026 - a quarterly increase of 7%. Approx. 75% of the new supply was priced > INR 1.5 Cr.
* Hyderabad added approx. 19,280 units in Q1 2026 - a quarterly increase of 46% over the preceding quarter when approx. 13,245 units were launched. Over 74% of the new supply added was priced >INR 1.5 Cr.
* NCR saw new supply decrease by a whopping 17% against Q4 2025, with approx. 15,985 units launched in Q1 2026 against 19,250 units in Q4 2025. Notably, 53% of the new supply added in the first quarter was priced >INR 2.5 Cr.
* Pune added approx. 16,000 units in Q1 2026 compared to 17,500 units in Q4 2025 – a decrease of 9%. Approx. 87% of the new supply was added in the mid and premium segments (INR 40 lakh – INR 1.5 Cr.)
* Chennai added approx. 5,395 units in Q1 2026, a quarterly decrease of 28%. At least 80% of the new supply was in the mid and premium segments (priced within INR 40 lakh to INR 1.5 Cr)
* Kolkata added approx. 5,220 units in Q1 2026, decreasing by 10% over Q4 2025. Approx. 71% of the new supply was in the affordable and the mid segments (priced up to INR 80 lakh.)
|
City wise Supply (Units) & Q-o-Q % Change |
|||||
|
Cities Name |
Q1 2026 |
Q4 2025 |
% Change (Q4 2025 Vs Q1 2026) |
Q1 2025 |
% Change (Q1 2025 Vs Q1 2026) |
|
NCR |
15,985 |
19,250 |
-17% |
11,120 |
44% |
|
MMR |
40,015 |
37,655 |
6% |
30,755 |
30% |
|
Bangalore |
24,370 |
22,870 |
7% |
20,855 |
17% |
|
Pune |
16,000 |
17,500 |
-9% |
16,860 |
-5% |
|
Hyderabad |
19,280 |
13,245 |
46% |
10,275 |
88% |
|
Chennai |
5,395 |
7,515 |
-28% |
4,755 |
13% |
|
Kolkata |
5,220 |
5,800 |
-10% |
5,400 |
-3% |
|
Total |
1,26,265 |
1,23,835 |
2% |
1,00,020 |
26% |
Source: ANAROCK Research & Advisory
Overall Sales Overview
Approx. 1,01,675 units were sold in Q1 2026, against 1,08,970 units in Q4 2025 – a 7% quarterly decline. However, the top cities witnessed a 9% yearly sales jump over Q1 2025. NCR, MMR, Bengaluru, Pune, and Hyderabad together accounted for 91% of sales in the first quarter.
* MMR saw the highest housing sales of approx. 32,800 units in Q1 2026, decreasing by 6% over Q4 2025. Approx. 34,725 units were sold in Q4 2025
* Bengaluru saw housing sales decrease by 5% in Q1 2026 against Q4 2025, with approx. 16,440 units sold in Q1 2026 and approx. 17,250 units sold back in the preceding quarter
* Pune saw approx. 15,300 units sold in Q1 2026, decreasing by 10% over Q4 2025 when approx. 17,000 units were sold
* NCR saw an 8% quarterly drop in housing sales – from approx. 16,525 units in Q4 2025 to approx. 15,190 units in Q1 2026
* Hyderabad recorded sales of approx. 12,425 units in Q1 2026, similar to Q4 2025 when approx. 12,435 units were sold
* Chennai saw approx. 5,310 units sold in Q1 2026 – an 18% quarterly drop over Q4 2025 when approx. 6,460 units were sold
* Kolkata saw an 8% decrease in housing sales in the period – from approx. 4,575 units in Q4 2025 to approx. 4,210 units in Q1 2026.
|
City wise Absorption (Units) & Q-o-Q % Change |
|||||
|
Cities Name |
Q1 2026 |
Q4 2025 |
% Change (Q4 2025 Vs Q1 2026) |
Q1 2025 |
% Change (Q1 2025 Vs Q1 2026) |
|
NCR |
15,190 |
16,525 |
-8% |
12,520 |
21% |
|
MMR |
32,800 |
34,725 |
-6% |
31,610 |
4% |
|
Bangalore |
16,440 |
17,250 |
-5% |
15,000 |
10% |
|
Pune |
15,300 |
17,000 |
-10% |
16,100 |
-5% |
|
Hyderabad |
12,425 |
12,435 |
0% |
10,100 |
23% |
|
Chennai |
5,310 |
6,460 |
-18% |
4,050 |
31% |
|
Kolkata |
4,210 |
4,575 |
-8% |
3,900 |
8% |
|
Total |
1,01,675 |
1,08,970 |
-7% |
93,280 |
9 |
Price Movement
Average residential property prices across the top 7 cities largely saw single-digit jumps in the last one year – with the notable exception of NCR, which recorded double-digit price growth ranging between 4-15% in Q1 2026 when 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.
Unsold Inventory
With significant new supply additions across the top 7 cities early this year, the overall available inventory increased by 7% in Q1 2026 when compared to Q1 2025. The total unsold stock in the top 7 cities as of Q1 2026-end stands at over 6.01 lakh units. At 24%, Bengaluru witnessed the highest increase in available inventory this quarter when compared to Q1 2025.
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