Geopolitical tensions in the Middle East are putting pressure on India’s residential construction sector, with disruptions to global trade routes and commodity markets posing risks to the timely delivery of 5.40 lakh housing units scheduled for completion across the country’s top seven cities in 2026, according to Anarock Research.
The 2026 completion pipeline is the highest in the past decade, with the scheduled delivery volume reflecting the strong pace of launches and sales recorded following the pandemic. While construction activity remains operational and labour availability has remained stable, developers are facing higher energy, logistics and material costs.
The conflict is affecting global supply chains and commodity markets, with construction materials such as steel, aluminium, copper, electrical equipment and building systems vulnerable to price and supply pressures. These factors could affect project economics and delivery schedules, particularly for developments already in advanced stages of construction.
MMR, Pune account for 57% of 2026 deliveries
The Mumbai Metropolitan Region (MMR) and Pune together account for around 57% of the scheduled housing deliveries in 2026. MMR has approximately 2,07,300 units slated for completion, while Pune accounts for another 1,00,300 units.
Southern markets together have a pipeline of 1,68,300 units, comprising 69,000 units in Bengaluru, 63,700 in Hyderabad and 35,600 in Chennai. The National Capital Region has approximately 39,000 units scheduled for completion, while Kolkata has another 22,500 units.
Between 2017 and 2025, developers delivered approximately 30.5 lakh housing units across these seven major markets. The current completion pipeline largely comprises projects launched between 2021 and 2023 that are now entering their final construction stages.
Delivery volumes reach decade high
Housing completions have risen steadily following the pandemic disruption. Developers completed 2,04,200 units in 2017, increasing to 2,46,140 in 2018 and 2,98,450 in 2019.
The pandemic caused a sharp disruption in 2020, when only 2,14,370 units were delivered against a planned pipeline of 4.66 lakh units. Completions subsequently recovered to 2,78,650 units in 2021, 4,02,000 in 2022, 4,35,000 in 2023, 4,52,000 in 2024 and 5,18,900 in 2025. The 2026 scheduled pipeline of 5,40,400 units is the highest recorded during the period.
Dr Prashant Thakur, Executive Director and Head of Research and Advisory, Anarock Group, said the scale of the 2026 pipeline would test developers’ ability to maintain construction schedules while managing rising input costs and margin pressures.
He said developers in markets with large completion pipelines, particularly MMR, Pune and Bengaluru, could remain more exposed to sustained input-cost inflation. Stronger balance sheets and technology-enabled project monitoring, however, could provide some mitigation.
Thakur also highlighted the role of tighter regulatory oversight under the Real Estate (Regulation and Development) Act, which places greater emphasis on time-bound project delivery.
With demand from end-users remaining resilient and financing availability stronger than during earlier real estate cycles, the focus is increasingly shifting from sales momentum to execution and timely delivery.
According to Anarock, 2026 could therefore serve as an important test of the residential real estate sector’s operational maturity, as developers navigate external shocks while delivering a record pipeline of homes.
