India Housing Prices Slow as Sales Drop in Q1 2026

India’s housing market across the top seven cities witnessed a significant slowdown in price growth during the January–March 2026 quarter, as home sales declined amid weakening consumer sentiment triggered by the West Asia conflict, according to an Anarock report.

Average housing prices rose just 2% quarter-on-quarter (QoQ) to ₹9,456 per sq ft, compared to ₹9,260 per sq ft in the previous quarter, indicating a sharp moderation in growth.

On a year-on-year (YoY) basis, prices still recorded a 7% increase from ₹8,868 per sq ft, reflecting underlying long-term demand.

Key Highlights

• Housing prices rise just 2% QoQ, signaling slowdown
• Sales drop 7% in volume and 6% in value across top cities
• Despite slowdown, sales up 9% YoY to over 1 lakh units

Also Read: Housing Sales Cross 1 Lakh Units Amid West Asia Tensions

The report tracks key real estate markets including Mumbai Metropolitan Region (MMR), Delhi-NCR, Bengaluru, Pune, Hyderabad, Chennai, and Kolkata. Across these cities, housing sales dropped 7% in volume and 6% in value compared to the previous quarter, highlighting buyer caution amid global uncertainties and affordability pressures.

City-wise, Delhi-NCR saw a 3% price increase to ₹9,620 per sq ft, while MMR recorded a modest 1% rise to ₹17,600 per sq ft. Bengaluru and Pune posted 2% growth, reaching ₹9,310 and ₹8,220 per sq ft respectively. Hyderabad also rose 2% to ₹7,990, while Chennai saw a marginal 1% uptick to ₹7,165 per sq ft. Kolkata led with the highest quarterly growth of 3%, touching ₹6,290 per sq ft.

Despite the slowdown, housing sales increased 9% YoY to 1,01,675 units, compared to 93,280 units last year. However, this was lower than the 1,08,970 units recorded in the October–December quarter.

Anarock Chairman Anuj Puri said the impact of the Iran war was clearly visible in the first quarter, particularly in March, as uncertainty weighed on buyer confidence.

“The decline in sales also aligns with large numbers of prospective Middle East homebuyers, who invest significantly in Indian real estate, hitting the pause button under the war cloud,” Puri said, adding that the long-term outlook for the housing market remains positive.

Also Read: West Asia Crisis Hits Art Dubai, India Market Resilient

Anarock noted that the strong price surge seen during 2022–2024 post-pandemic demand has begun to ease since early 2025 due to affordability concerns and global economic risks, signaling a more cautious and stabilizing market outlook.