Residential sales in India hit 3-year low: What's the reason?
What's the story
India's residential real estate market has witnessed a major slump in the April-June quarter, with sales hitting their lowest level since January 2023. According to Anarock data, a total of 90,715 units were sold during this period. The decline is largely attributed to geopolitical tensions and supply chain disruptions that have affected buyer sentiment across the country.
Market resilience
Premium housing segments show resilience
Despite the overall decline in residential sales, premium housing segments have shown some resilience. Major employment hubs led by Gulf Cooperation Council (GCC) countries and infrastructure-driven corridors are witnessing growth. Anuj Puri, Chairman of Anarock Group, said that "the most sales growth now is in premium housing." He also noted that disruptions caused by the Middle East war and AI-related uncertainties in the IT/ITeS sector have made buyers more cautious.
Sales dominance
MMR and Bengaluru dominate sales charts
The Mumbai Metropolitan Region (MMR) and Bengaluru together accounted for over 48% of total sales in the top seven Indian cities. A total of around 43,995 units were sold in these two cities during Q2 2026. Among the top cities, Kolkata, Hyderabad, and Bengaluru saw annual sales growths of 10%, 2%, and 1%, respectively. Pune recorded a steepest annual decline of 15% during this period.
Launch growth
New launches up by 7% year-on-year
Despite the prevailing market uncertainties, new launches have seen a 7% year-on-year increase. From 98,625 units in Q2 2025, the number of new launches rose to 1,06,000 units in Q2 2026. MMR and Bengaluru accounted for over half of this new supply across the top seven cities. Individually, MMR saw a yearly increase of 23% while Bengaluru witnessed an impressive annual jump of 41%.
Price surge
Prices see marginal growth
Quarterly average residential prices in the top seven cities saw a marginal rise of 1%. However, the annual growth rate has slowed down slightly compared to last year's double-digit growth. The National Capital Region (NCR) witnessed the highest annual price surge of 13% in Q2 2026. Bengaluru followed closely with an annual price jump of 8%.