US-Iran Conflict Could Jeopardize 5.4 Lakh Housing Deliveries in India's Top Cities in 2026

A record 5.4 lakh housing units are slated for completion across India's top seven cities in 2026, marking the strongest year for residential deliveries in a decade. However, this unprecedented pipeline could face headwinds if the US-Iran war drags on. Rising energy costs, supply-chain disruptions, and higher construction input prices could create execution bottlenecks and increase the risk of project delivery delays, as per an Anarock report.

It noted that the western markets of MMR and Pune alone account for 57% of the homes slated for completion, with a large share comprising projects launched between 2021 and 2023 that are now in the final stages of construction.

A prolonged geopolitical crisis has the potential to push up energy and freight costs, disrupt supply chains, and inflate the prices of key construction materials such as steel, aluminium, copper, electrical equipment, and building systems. These cost pressures could impact project viability, squeeze developer margins, and complicate execution timelines, it noted.

With construction activity peaking across multiple projects nearing handover, developers are particularly exposed to supply-chain disruptions and input-cost volatility. While the current completion pipeline remains largely on track, an extended conflict could create execution bottlenecks and raise the risk of delays in the delivery of some projects, it said.

According to the report, a prolonged Middle East war is expected to test housing delivery timelines in 2026 amid disrupted supply chains and rising cost pressures. In the pandemic-hit year of 2020, as many as 2.14 lakh homes (46% share) were delivered against a scheduled pipeline of 4.66 lakh units, highlighting the impact of major disruptions, the report said.

The report said that Mumbai, Pune, and Bengaluru account for 70% of homes due for completion in 2026 and may face the biggest execution challenges. Realty major NCR has just 39,000 housing units scheduled for completion this year.

According to the report, approximately 5.19 lakh units were delivered across the top seven cities in 2025.

“Latest ANAROCK Research data reveals that a record 5,40,400 housing units are scheduled for completion across the top 7 cities in 2026, the highest in the last decade. Of the total scheduled deliveries, the western markets of MMR and Pune collectively account for 57% of homes due for completion this year,” said Prashant Thakur, Executive Director and Head, Research and Advisory, ANAROCK Group.

Historically, ambitious housing supply pipelines have often been vulnerable to external shocks like these. For instance, during the pandemic year of 2020, ANAROCK Research shows that approximately 4.66 lakh homes were scheduled for completion across the top seven cities. However, only about 2.14 lakh units, or 46% of the planned pipeline, were ultimately delivered as construction came to a halt due to lockdowns, labour migration, and supply-chain disruptions, Thakur said.

The gap between scheduled and actual completions shows that even projects in advanced stages of construction can face delays when confronted with large-scale disruptions. The current situation is fundamentally different from the pandemic, as construction activity continues uninterrupted and labour availability remains stable.

“However, a prolonged geopolitical conflict will inevitably impact project economics through higher energy prices, increased logistics costs, and inflation in key construction materials such as steel, aluminium, copper, electrical equipment, and building systems,” the report said.

According to Anarock Research, nearly 30.5 lakh housing units were delivered across India’s top seven cities between 2017 and 2025. The approximately 5.40 lakh units scheduled for delivery this year make 2026 the highest delivery year in the past decade, provided all deliveries occur on schedule.

“The sheer scale of homes slated for delivery this year reflects the strong launch and sales momentum witnessed after the pandemic. Residential projects launched between 2021 and 2023 are now entering their final construction stages, creating an unprecedented completion pipeline across the country’s leading housing markets. This pipeline is now under real threat of derailment, due to the ongoing West Asia war,” the report said.