India’s housing market saw a 7 per cent quarter-on-quarter decline in sales across the top seven cities in Q1 2026, with approximately 1,01,675 units sold compared to 1,08,970 units in Q4 2025, according to ANAROCK Group. However, on a yearly basis, sales rose 9 per cent, indicating continued underlying demand.

The total sales value stood at around Rs 1.51 trillion, reflecting a 5 per cent quarterly drop but a 6 per cent annual increase. Mumbai Metropolitan Region and Bengaluru together accounted for nearly 48 per cent of total sales, while Chennai recorded the highest quarterly decline at 18 per cent but also the strongest annual growth at 31 per cent.

New housing supply rose marginally by 2 per cent quarter-on-quarter and significantly by 26 per cent year-on-year, reaching over 1,26,265 units. Hyderabad led supply growth with a 46 per cent quarterly increase, followed by Bengaluru and MMR.

The surge in new launches has pushed unsold inventory up by 4 per cent quarterly and 7 per cent annually, crossing 6,00,000 units. Average property prices increased by 2 per cent quarter-on-quarter and 7 per cent annually, with NCR and Bengaluru recording the highest yearly growth.

According to Anuj Puri, geopolitical uncertainties and rising costs impacted buyer sentiment during the quarter, while a shift towards higher supply relative to sales has led to a gradual increase in inventory levels.