A report by Knight Frank said housing sales across eight major Indian cities fell by four per cent in the first quarter of 2026 compared with the same period last year. A total of 84,827 homes were sold between January and March 2026, down from 88,361 units in the first quarter of 2025. The decline was attributed to sustained high property prices and uncertainty linked to the ongoing conflict in Iran and wider West Asia.

The fall varied across cities, with Mumbai recording a fall of around seven per cent as 23,185 homes were sold during the quarter. The Delhi-National Capital Region saw sales drop by 11 per cent to 12,734 units while Pune experienced an 11 per cent decrease to 12,711 homes. These figures suggested that potential buyers were exercising caution amid rising costs.

Several cities recorded growth, indicating regional divergence in demand. Bengaluru's sales rose by five per cent to 13,092 units and Hyderabad saw a modest increase of one per cent, reaching 9,541 units. Chennai recorded a nine per cent rise to 4,763 homes sold, and both Ahmedabad and Kolkata posted annual gains.

Knight Frank noted that sustained high prices had eroded affordability for many buyers, particularly first-time purchasers and those seeking mid-range dwellings, and that geopolitical uncertainty had influenced buyer sentiment and investment decisions. The January–March quarter is traditionally a period of strong housing activity, and a decline at that time marked a departure from recent patterns. Affordability, supply dynamics and broader economic conditions were likely to shape residential transaction trends in the coming months. Observers said that policy changes and the availability of home finance could influence the pace of recovery, with stronger support likely to lift mid-segment demand more quickly.