As of the end of Q1 2025, unsold homes priced below ₹40 lakh dropped by 19% across the top 7 cities, compared to the same time last year. Meanwhile, homes priced above ₹1.5 crore saw a 24% increase in unsold units.

What’s Happening in the Market?

• Affordable Housing (Below ₹40 lakh):
  • Inventory dropped from 1.40 lakh units to 1.13 lakh units
  • This is mainly due to limited new supply and steady demand from end-users
  • Bengaluru saw the biggest drop at 51%
  • Chennai followed with a 44% decline
  • Hyderabad was the only city where unsold affordable homes went up by 9%
• Luxury Housing (Above ₹1.5 crore):
  • Inventory rose from 91,125 units to 1.13 lakh units
  • Many new luxury homes were launched, but demand hasn’t kept up
  • Chennai and Pune were the only cities to see a decline in luxury stock (4% and 11% respectively)
  • Other cities saw increases, with NCR up 78%, Kolkata up 96%, and Bengaluru up 57%

Middle Segments:

• Mid-range homes (₹40–80 lakh) saw a 10% drop in unsold stock
• Premium homes (₹80 lakh–₹1.5 Cr) remained mostly unchanged

Total Unsold Homes in Top 7 Cities:

As of Q1 2025-end, there were around 5.60 lakh unsold homes across the top cities — a 4% drop from 5.81 lakh units a year ago.

Breakdown by price segment:

Expert View:

Anuj Puri, Chairman of ANAROCK Group, explained:
“Affordable housing suffered the most after COVID-19, but the recent drop in unsold stock shows that buyers are returning. These are mostly end-users looking for real homes, not investors.”

He added, “Luxury housing did very well over the past few years, but now we’re seeing inventory rise. This is due to many new launches, plus some buyer caution because of global economic uncertainty.”

City Snapshot – Affordable Segment (< ₹40 lakh):

Conclusion:

The real estate market is seeing a shift. Budget homes are back in demand, while luxury homes may face some oversupply. Buyers are clearly becoming more cautious, especially in the higher price brackets, while affordable and mid-range homes continue to attract genuine home seekers.

Also Read: Housing Prices Surge in 2024, Delhi NCR Leads with 31% Growth

The post Affordable Homes Selling Faster, Luxury Homes Slowing Down appeared first on Square Feat India.