War hits property market but Kolkata faces least impact
Times of India | 29 March 2026
Kolkata: From oil to finance, the conflict in West Asia has had its adverse effect on various sectors.
The impact is also being witnessed in real estate. With dearth in number of buyers, sales of properties in several cities have dropped in March. In the first quarter of the current fiscal, the sales have taken a hit in at least seven cities. But on a yearly basis, the market stayed resilient in the city.
Around 1,01,675 homes worth over Rs 1.5 lakh crore were sold in Q1 2026. About 1,08,970 units worth Rs 1.6 lakh crore were sold in Q4 2025. The sales improved compared to Q1 2025, when 93,280 units worth Rs 1.4 lakh crore sold.
Interest toward purchase of premium segment properties is often shown by NRIs or investors from the now war-torn region. Thus, NRIs and West Asia investors have played a significant role in the country's upper-mid housing markets. But there has been a dent in consumer sentiment. Buyers have delayed their plans to invest in properties as stock markets crashed, triggering inflation worries amid the fuel crisis.
According to the chairman of a real estate consultancy company, Anarock, Anuj Puri domestic buyers had also turned cautious.
He said the 7% dip in sales during the quarter tracks the war induced uncertainty.Housing sales in the city decreased 8% quarter-on-quarter. This dip was from around 4,575 units in Q4 2025 to 4,210 units in Q1 2026.
New launches also declined from 5,800 units to 5,220 units. Unlike markets such as Mumbai Metropolitan Region, Bengaluru, or Hyderabad, Kolkata's supply remained concentrated in the affordable and mid-income segment.
About 71% of new launches were priced up to Rs 80 lakh. Builders in the city restricted the supply of new projects.
MMR and Bengaluru together accounted for 48% of total homes sold in Q1 2026.
Chennai saw the steepest quarterly sales decline at 18%. It posted the strongest annual growth at 31%. Pune recorded a 10% dip in sales and a 9% decline in launches. NCR saw sales dropping by 8% and new supply getting limited by 17%.
Hyderabad emerged to be the most stable on demand side.
A crucial shift in Q1 2026 was that new launches outpaced sales. It reversed the post pandemic trend, when demand had stayed ahead of supply.
New launches in these top 7 cities increased 2% quarter-on-quarter and 26% year-on-year to about 1,26,265 units. Bengaluru saw the sharpest inventory build up. Unsold stock increased 12% quarter on quarter and 24% year on year.
Homes priced between Rs 1.5 crore and Rs 2.5 crore comprised 32% of new launches. Residential properties above Rs 2.5 crore accounted for 20%. Homes below Rs 40 lakh were about 10% of the supply.
Despite the crisis, developers continue to target premium and upper-mid segments, especially in cities with stronger investor and NRI participation. Kolkata remained an exception. It showed an inclination toward affordable and mid-segment launches.