Bengaluru: Disruption in supply chains and commodity markets due to ongoing war in Western Asia has hit residential real estate. A report stated that around 540,000 houses in tier 1 cities are facing delays.
A prolonged geopolitical conflict will inevitably affect project economics through higher energy prices, increased logistics costs and inflation in key construction materials such as steel, aluminum, copper, electrical equipment and building systems, according to a report by real estate consultancy Anarock.
However, demand for end-user-driven housing remains resilient and project financing is also better than in previous cycles. “The latest data from Anarock Research reveals that a record 540,000 residential units are slated for completion in the top 7 cities in 2026 – the highest in the last decade. Of the total planned deliveries, the western markets of MMR and Pune collectively account for 57% of homes due for completion this year,” said Anakurack, Director of Research, Hekurrosh. The group.
Historically, ambitious housing supply pipelines have often been vulnerable to external shocks like these, he said. “For example, during the pandemic year, 4.66 lakh houses were slated for completion in the top 7 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 congestion, labor migration and supply chain disruptions.”
In MMR, approximately 2.07 lakh units are slated for delivery during the year, while Pune expects one lakh units to be delivered in 2026. In the south, Bengaluru (69,000), Hyderabad (63,700) and Chennai (35,600) have a combined 1.68 lakh units delivered this year. North India’s real estate powerhouse NCR has only 39,000 units slated for completion, and in the East, Kolkata has only 22,500 units slated for completion this year.
“Cities with the largest completion pipelines – particularly MMR, Pune and Bengaluru – are particularly vulnerable to sustained input cost inflation as developers need to maintain delivery schedules and simultaneously manage margin pressures,” Thakur added.
Anarock Research shows that between 2017 and 2025, about 30.5 lakh residential units have been delivered in the top 7 cities of India.
Thakur said the sheer scale of homes slated for delivery this year reflects the strong launch and sales momentum seen after the pandemic.
