Mumbai: Housing sales across India’s top seven cities declined by 6% year-on-year in the second quarter of 2026 amid persistent geopolitical uncertainties and supply chain disruptions triggered by the ongoing West Asia conflict, according to the latest report by ANAROCK Research.
Approximately 90,715 units were sold during Q2 2026, compared to over 96,285 units in the corresponding quarter last year.
On a quarterly basis, housing sales witnessed an 11% decline, reflecting cautious buyer sentiment across major residential markets.
According to ANAROCK, Mumbai Metropolitan Region (MMR) and Bengaluru continued to dominate the market, jointly accounting for more than 48% of total residential absorption during the quarter.
Together, these two cities recorded nearly 43,995 units sold in Q2 2026.
Among the seven major cities, only Kolkata, Hyderabad and Bengaluru registered annual growth in housing sales, posting increases of 10%, 2% and 1%, respectively. Pune recorded the steepest annual decline, with sales dropping by 15%.
Meanwhile, residential new launches across the top seven cities rose by 7% year-on-year, increasing from approximately 98,625 units in Q2 2025 to around 1,06,000 units in Q2 2026. However, on a quarter-on-quarter basis, fresh supply declined by 16%.
MMR and Bengaluru led new supply additions, contributing nearly 53% of the total inventory introduced during the quarter.
MMR witnessed a 23% annual rise in new launches despite a 14% sequential decline, while Bengaluru reported an impressive 41% yearly increase in supply, although launches fell 11% compared to the previous quarter.
Commenting on the market performance, Anuj Puri, Chairman – ANAROCK Group, said, “These readings are along expected lines, as the Middle East war’s impacts on the entire sector were all too obvious. 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.
Notable, the most sales growth now is in premium housing, GCC-led employment hubs, and infrastructure-driven corridors. Also, the Middle East war’s disruptions and, inevitably, AI-related uncertainties in the IT/ITeS sector have pushed more buyers onto the fence.”
He further added, “Interestingly, new launches remained strong in Q2 2026 annually as large and listed developers unleashed projects on the massive land parcels they acquired in 2025.
However, on quarterly basis, new supply in the top cities dropped by 16% in Q2 2026. Uncertainty-weakened buyer sentiment would also have caused many developers to throttle back new supply.”
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Premium Housing Continues to Drive New Supply
The report highlighted that homes priced between ₹80 lakh and ₹1.5 crore accounted for the largest share of new supply at 27%. Properties priced between ₹1.5 crore and ₹2.5 crore contributed another 25%, while homes priced above ₹2.5 crore comprised 22% of total launches.
The mid-segment category, priced between ₹40 lakh and ₹80 lakh, represented 19% of the total supply. In contrast, affordable housing supply continued to shrink, falling to just 6% and remaining in single digits.
The trend indicates that premium and luxury housing continue to dominate developer preferences, significantly influencing overall housing sales trends across major metropolitan markets.
Average Residential Prices Continue Upward Trend
Average residential prices across the top seven cities increased by 7% annually during Q2 2026, although quarterly growth remained subdued at just 1%.
National Capital Region (NCR) registered the highest annual price appreciation of 13%, while Bengaluru followed with an 8% increase in average property prices.
The annual growth momentum in residential prices moderated compared to the double-digit increases recorded across most cities last year.
City-wise New Launch Trends
MMR emerged as the largest contributor to fresh supply, with approximately 34,555 units launched during Q2 2026. More than 57% of these launches were concentrated in the sub-₹1.5 crore segment.
NCR recorded the sharpest decline in new launches, with supply falling 40% year-on-year to around 11,205 units. Notably, 61% of new supply in NCR was introduced in luxury segments priced above ₹1.5 crore.
Bengaluru added nearly 21,670 units during the quarter, with around 96% of the supply concentrated in premium and luxury categories priced above ₹80 lakh.
Pune launched approximately 12,735 units, marking a 10% annual decline. More than 78% of new supply in the city was concentrated within the ₹40 lakh to ₹1.5 crore category.
Hyderabad reported the highest annual increase in new launches at 53%, adding approximately 16,970 units. Over 82% of the city’s fresh supply was concentrated in premium and luxury segments.
Chennai introduced around 5,315 units, registering a 38% annual decline, while Kolkata launched approximately 3,550 units, reflecting a 42% annual increase.
Overall Sales Performance Across Cities
Overall housing sales across the top seven cities stood at approximately 90,715 units during Q2 2026.
MMR recorded the highest absorption with around 28,710 units sold, despite an 8% annual decline. Bengaluru remained resilient, registering marginal annual growth of 1% with approximately 15,285 units sold.
NCR witnessed a 6% decline in annual sales, while Pune reported a sharper contraction of 15%.
Hyderabad emerged as one of the few growth markets, recording a 2% rise in sales to approximately 11,270 units. Kolkata outperformed all cities with a 10% annual increase in housing sales, reaching around 3,860 units.
Chennai reported a 9% annual decline, with approximately 5,135 units sold during the quarter.
Available Inventory Rises 10%
Available inventory across the top seven cities increased by 10% annually, rising from approximately 5.62 lakh units in Q2 2025 to over 6.16 lakh units by the end of Q2 2026.
Bengaluru recorded the highest increase in available inventory, witnessing a substantial 34% annual rise from nearly 58,890 units to approximately 79,180 units. NCR remained the only city where inventory levels remained largely unchanged.
