Summary of this article
Housing sales declined 6% annually.
New launches increased despite softer demand.
Premium housing dominated fresh supply.
India’s residential real estate market saw a moderation in demand during the second quarter of 2026, with housing sales across the top seven cities declining by 6 per cent on a year-on-year (y-o-y) basis, according to data from Anarock. Nearly 90,715 housing units were sold in Q2 2026 compared to over 96,285 units during the same period last year. On a quarterly basis as well, sales have dropped by 11 per cent; this reflects the cautious sentiment among homebuyers amid global geopolitical uncertainties.
According to Anarock, persistent uncertainty arising from the West Asia war and the resulting supply chain disruptions impacted buyer confidence during the quarter. Despite the decrease in sales, the launch of new housing supply has remained resilient. Developers launched nearly 106,000 residential units across the top seven cities in Q2 2026, registering a 7 per cent annual increase over approximately 98,625 units launched during Q2 2025. However, on a quarter-on-quarter (q-o-q) basis, new launches declined by 16 per cent, indicating that developers also adopted a more cautious approach amid weakening market sentiment.
The Mumbai Metropolitan Region (MMR) and Bengaluru dominated the housing market. Together, the two cities accounted for nearly 48 per cent of total housing sales and 53 per cent of all new launches during the quarter. MMR recorded approximately 28,710 housing sales and 34,555 new launches, while Bengaluru registered around 15,285 sales and 21,670 new launches.
Among the seven major cities, only Kolkata, Hyderabad, and Bengaluru reported annual growth in housing sales. Kolkata led the pack with a 10 per cent increase in sales, followed by Hyderabad with a 2 per cent rise and Bengaluru with just 1 per cent growth. Pune witnessed the sharpest decline in sales, recording a 15 per cent year-on-year drop, while MMR and Delhi-National Capital Region (Delhi-NCR) registered declines of 8 per cent and 6 per cent, respectively. Chennai also saw sales falling by 9 per cent.
On the supply front, Hyderabad emerged as the fastest-growing market with a remarkable 53 per cent annual increase in new launches. Bengaluru followed with a 41 per cent rise, while MMR recorded a 23 per cent increase. In contrast, Delhi-NCR experienced a steep 40 per cent decline in new launches, and Chennai's supply fell by 38 per cent compared to Q2 2025.
The composition of new housing supply also reflected the continued shift towards premium housing. Homes priced between Rs 80 lakh and Rs 1.50 crore accounted for the largest share of new launches at 27 per cent, followed by properties in the Rs 1.50 crore to Rs 2.50 crore segment with a 25 per cent share. Luxury housing priced above Rs 2.50 crore contributed 22 per cent of total launches, while the mid-segment (Rs 40 lakh - 80 lakh) accounted for 19 per cent.
Affordable housing continued to shrink, making up only 6 per cent of the total new supply.
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. What we have currently is a more balanced housing market where new supply is catching up with absorption, as sales growth has moderated across most top cities. Notably, 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 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 a quarterly basis, new supply in the top cities dropped by 16 per cent in Q2 2026. A weak buyer sentiment because of uncertainty-weakened has also caused many developers to throttle back new supply.”
