India Housing Sales Crash: Lowest in Nearly 5 Years
The real estate sector plays a crucial role in the country’s economy. When this sector performs strongly, it is often seen as a sign of a fast-moving economy. However, recent data shows that the already sluggish real estate market across the country has weakened further in the first three months of this year. Between January and March 2026, total housing sales dropped below 1 lakh units. According to a report by PropEquity, which tracks real estate trends nationwide, this is the first time in the past four-and-a-half years that sales have fallen to such low levels. Despite the overall dull market, cities like Bengaluru and the Delhi–National Capital Region (NCR) managed to record an increase in sales.
Hyderabad, however, saw a decline of 16% compared to the same period last year, with only 11,546 units sold in the first quarter of this year. Chennai also witnessed a 4% drop, with sales limited to 4,765 units. The report further reveals that housing supply has sharply declined by 62% compared to last year. Across nine major cities in the country, total sales fell to 98,761 units—down 13% year-on-year. The supply of new units also dropped by 19%, settling at 92,411 units. Cities like Kolkata and Navi Mumbai also reported a significant slowdown in sales. Due to prevailing market conditions, the number of new real estate projects being launched has also decreased.
Experts believe that the situation is unlikely to improve in the coming months. On one hand, disruptions caused by artificial intelligence in the high-paying IT sector are creating uncertainty. On the other, the ongoing conflict involving the United States and Israel against Iran over the past month is expected to have further repercussions on the market. Global fuel prices have already risen, and this is likely to push overall costs higher. Due to the impact of the conflict, prices of key construction materials such as cement and steel are also expected to increase from April. In an already weak market, this could become another major negative factor, experts warn.
