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The new year has started on a subdued note with the Gulf War casting its shadow over residential real estate as housing sales witnessed quarter on quarter decline in the first quarter, with Chennai leading the slide in top 7 cities.
Latest Anarock Research data indicates that Q1 2026 saw a 7% drop in sales across the top 7 cities against Q4 2025. Nearly. 1,01,675 units worth INR 1.51 lakh Cr were sold in Q1 2026 in the top cities, in contrast to about 1,08,970 units worth INR 1.60 Lakh Crore in Q4 2025.
But considering 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. 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%
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.
According to Anuj Puri, Chairman, Anarock Group, 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, as per Puri, is that new launches have started outpacing sales, reversing the post-pandemic pattern when sales were usually higher. As a result of this, 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.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.
Looking at the sales overview, 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.
| 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% |
Source: Anarock Research & Advisory
On the price front, residential property prices 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 ,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.With significant new supply additions 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.
