Unsold Budget Homes Dip, Luxury Housing Pile-Up Grows: Report
Affordable housing stock in India's top 7 cities fell 19% YoY in Q1 2025, while luxury segment inventory rose 24%, according to ANAROCK Research data.
image for illustrative purpose
New data from ANAROCK Research reveals a 19 per cent drop in unsold affordable housing units priced below INR 40 lakh across India’s top seven cities, indicating recovering demand among budget-conscious homebuyers.
Unsold stock in this segment declined from approximately 1.40 lakh units at the end of Q1 2024 to about 1.13 lakh units by the end of Q1 2025. This shift suggests renewed traction in the budget housing category, despite a general slowdown post-pandemic.
Conversely, unsold inventory in the luxury segment—units priced above Rs 1.5 crore—climbed 24 per cent year-on-year. Figures show luxury inventory rose from 91,125 units in Q1 2024 to over 1.13 lakh units by Q1 2025, driven by fresh supply and cautious investor behavior.
Bengaluru led the affordable housing recovery with a sharp 51 per cent annual drop in unsold units. Chennai followed with a 44 per cent reduction. Other major cities like Pune and NCR recorded 28 per cent and 22 per cent declines, respectively. However, Hyderabad recorded a 9 per cent increase in unsold stock, reaching around 1,815 units.
Luxury inventory trends showed mixed patterns. Chennai and Pune saw reductions in unsold units—4 per cent and 11 per cent, respectively. Meanwhile, cities including NCR, MMR, Bengaluru, Hyderabad, and Kolkata experienced an increase in luxury housing inventory.
According to Anuj Puri, Chairman of ANAROCK Group, affordable housing’s market share in sales declined from 38 per cent in 2019 to 18 per cent in 2024. Similarly, new supply share fell from 40 per cent to 16 per cent over the same period. However, the current fall in unsold units points toward persistent demand from end-users.
Luxury housing saw its share of total sales increase from 7 per cent in 2019 to 26 per cent in 2024. Supply also rose, doubling from 11 per cent to 26 per cent. The resulting spike in unsold stock is attributed to the flood of new launches coupled with investor caution amid global economic uncertainties.
City-Wise Affordable Housing Inventory (Units)
- NCR: 25,105 (down 22 per cent)
- MMR: 53,942 (down 11 per cent)
- Bengaluru: 3,323 (down 51 per cent)
- Pune: 14,686 (down 28 per cent)
- Hyderabad: 1,815 (up 9 per cent)
- Chennai: 1,090 (down 44 per cent)
- Kolkata: 12,783 (down 20 per cent)
Total Inventory by Budget (Q1 2025-End)
- Below INR 40 lakh: 1,12,744 units (down 19 per cent)
- INR 40-80 lakh: 1,57,741 units (down 10 per cent)
- INR 80 lakh-1.5 Cr: 1,76,130 units (flat)
- Above INR 1.5 Cr: 1,13,193 units (up 24 per cent)
Total Unsold Units Across Top Cities: 5,59,808 units
Affordable and luxury housing segments each comprise nearly 20 per cent of this total.
