West Asia Conflict Poses Risk to 5.4 Lakh Home Deliveries in 2026: ANAROCK

India's residential real estate sector could face project delivery challenges in 2026 if the ongoing conflict in the West Asia continues to disrupt global supply chains and push up construction costs, according to property consultancy ANAROCK Group.

ANAROCK Research estimates that around 5,40,400 housing units are scheduled for completion across the top seven cities this year, making 2026 the biggest year for housing deliveries in the last decade.

Of the total scheduled deliveries, the western markets of MMR (Mumbai Metropolitan Region) and Pune collectively account for 57 percent of homes due for completion this year, said Prashant Thakur, Executive Director and Head of Research and Advisory at ANAROCK Group.

MMR is expected to see delivery of about 2,07,300 units, while Pune has around 1,00,300 units lined up for completion. Bengaluru is scheduled to deliver 69,000 units, followed by Hyderabad with 63,700 units and Chennai with 35,600 units. NCR has 39,000 units due for completion, while Kolkata's pipeline stands at 22,500 units.

ANAROCK said past disruptions highlight the risks facing large delivery pipelines. During the pandemic-hit year of 2020, about 4.66 lakh homes were scheduled for completion across the top seven cities, but only around 2.14 lakh units, or 46 percent of the planned total, were delivered as construction activity was affected by lockdowns and supply-chain disruptions.

While the current situation differs from the pandemic as construction activity remains largely unaffected and labour availability is stable, developers could face pressure from rising logistics costs, higher energy prices, and inflation in key construction materials such as steel, aluminium, copper, and electrical equipment.

According to ANAROCK, cities with the largest completion pipelines, particularly MMR, Pune, and Bengaluru, are likely to be most exposed to sustained cost inflation.

According to industry estimates, nearly 30.5 lakh housing units were delivered across the top seven cities between 2017 and 2025. Housing completions have steadily increased since the pandemic, rising from 2.14 lakh units in 2020 to about 5.19 lakh units in 2025.

The large number of homes scheduled for delivery this year reflects strong housing launches and sales recorded between 2021 and 2023, with many projects now reaching the final stages of construction.

The spotlight is now shifting from sales to execution. The significance of 2026 extends beyond the sheer number of homes scheduled for delivery. It will be an important test of developers' ability to execute projects on time amid global uncertainty, Thakur said.