India's residential real estate sales dip 6% in Q2 2026 amid Middle East war uncertainty

Residential sales in India's top seven cities fell 6% year‑on‑year to about 90,715 units in the April‑June quarter, with an 11% quarterly decline. The Mumbai Metropolitan Region and Bengaluru together accounted for over 48% of total sales. Kolkata posted a 10% increase, Hyderabad 2%, Bengaluru 1%, while Pune recorded the steepest fall at 15%.

New launches rose 7% year‑on‑year to roughly 106,000 units, driven mainly by MMR (23% increase) and Bengaluru (41% jump). Over half of the new supply came from these two markets. Premium and luxury segments absorbed the bulk of new inventory.

Average residential prices rose modestly, up 1% in the quarter and 7% annually. The National Capital Region saw the highest annual price surge at 13%, with Bengaluru up 8%.

Anarock cited ongoing geopolitical tension from the West Asia (Middle East) war, related supply‑chain disruptions and AI‑related uncertainty in the IT/ITeS sector as dampening buyer sentiment, while premium housing in GCC‑linked employment hubs showed relative resilience.