Iran Conflict Stifles Housing Market Growth in India's Top Cities

India's top seven housing markets saw a muted 2% growth in average prices during January-March against the previous quarter, as sales fell amid negative consumer sentiments due to the West Asia conflict, according to data from Anarock, a leading real estate consultant.

The average housing prices across these seven major cities rose to Rs 9,456 per square feet in January-March from Rs 9,260 per square feet in the preceding quarter. On an annual basis, the prices increased by 7% from Rs 8,868 per square feet in January-March 2025.

Anarock tracks the primary (first sale) housing markets of seven cities: Mumbai Metropolitan Region (MMR), Delhi-NCR, Bengaluru, Pune, Hyderabad, Chennai, and Kolkata. The data shows that housing sales across these cities fell by 7% in volume terms and 6% in value terms during January-March 2026 compared to the previous quarter, which kept prices under check to a large extent.

In Delhi-NCR, the average housing price appreciated by 3% in January-March to Rs 9,620 per square feet from Rs 9,300 per square feet in the preceding quarter. Rates rose 15% from Rs 8,330 per square feet in the same period last year. In MMR, the rates grew 1% to Rs 17,600 during January-March 2026 from Rs 17,350 per square feet in the preceding quarter. On an annual basis, the prices went up 4% from Rs 16,900 per square feet in January-March 2025.

Bengaluru saw a 2% increase in average prices to Rs 9,310 in January-March 2026 from Rs 9,100 per square feet in the preceding quarter. The city witnessed an 8% annual appreciation from Rs 8,650 per square feet in January-March 2025. In Pune, the prices of residential properties rose 2% to Rs 8,220 in January-March this year from Rs 8,050 per square feet in the preceding quarter. A 5% increase was recorded from Rs 7,800 per square feet in the January-March period last year.

Hyderabad experienced a 2% price appreciation to Rs 7,990 per square feet in January-March this year from Rs 7,830 per square feet in the preceding quarter. The rates grew 6% annually from Rs 7,550 per square feet in January-March 2025. In Chennai, the average housing prices grew just 1% to Rs 7,165 per square feet during January-March this year from Rs 7,100 per square feet in the preceding quarter. The rates increased 4% annually from Rs 6,900 per square feet in the January-March period last year.

Kolkata saw a 3% increase in average housing prices in January-March 2026 to Rs 6,290 from Rs 6,120 per square feet in the preceding quarter. The rates grew 6% annually from Rs 5,950 per square feet in January-March last year.

Anarock Chairman Anuj Puri noted that the 'short-term tremors of the Iran War were clearly visible in the first quarter.' He pointed out that the war-induced uncertainty has affected buying sentiments, particularly in March. '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. However, he added that the long-term outlook for India's housing market remains positive.

According to the Anarock data, housing sales rose 9% annually in January-March across the top seven cities but fell 7% from the previous quarter amid global economic uncertainties. Sales increased to 1,01,675 units during the January-March period from 93,280 units in the year-ago period. However, the sales fell from 1,08,970 units in the preceding quarter.

During the 2022-24 calendar years, housing prices rose sharply across major cities, driven by post-pandemic pent-up demand. After a sharp rally, the pace of growth has subsided from the beginning of the 2025 calendar year.

Mumbai-based Anarock is one of the leading housing brokerage firms in the country, providing consultancy services for leasing of commercial (office, retail, and warehousing) real estate spaces, land acquisition, and fundraising.