Affordable Homes See Sharp 19% Decline In Inventory As Luxury Stock Surges 24%, Says ANAROCK Report

Affordable housing in India continues to feel the aftershocks of the pandemic, with buyers in this segment adopting a cautious stance in recent years. As a result, both sales and new launches have seen a significant decline. However, new research by ANAROCK indicates a shift in momentum. Unsold inventory in the affordable housing segment—defined as units priced below ₹40 lakh—fell by 19 percent across the top seven cities, from 1.40 lakh units at the end of Q1 2024 to 1.13 lakh units by Q1 2025-end, reflecting steady end-user demand.

Luxury Segment Sees Inventory Surge Despite High Sales

In contrast, the luxury housing segment—units priced above ₹1.5 crore—witnessed a 24 percent increase in unsold stock. The number rose from 91,125 units in Q1 2024 to over 1.13 lakh units in Q1 2025, driven by strong demand and significant new supply.

Anuj Puri, Chairman of ANAROCK Group, said, “Affordable housing faced the sharpest pandemic fallout, with sales and new launches shrinking in the top 7 cities. ANAROCK data shows that affordable housing sales share plummeted from 38 percent in 2019 to 18 percent in 2024, while its supply share dropped from 40 percent to 16 percent in the same period.”

Bengaluru, Chennai Lead Affordable Recovery

Among the top seven cities, Bengaluru recorded the sharpest drop in unsold affordable housing stock at 51 per cent, followed by Chennai with a 44 percent decline. Hyderabad was the only city to see a 9 percent rise in unsold affordable units, reaching approximately 1,815 units by Q1 2025.

Puri added, “A 19 percent dip in unsold stock hints at sustained demand led by end-users.”

Luxury Inventory Rises In Major Cities

While the luxury segment continues to perform well in terms of demand, unsold inventory rose due to increased supply and cautious investor sentiment amid global economic uncertainty. “The build-up of stock in luxury housing, which has been the top-performing segment in the past 2-3 years, is largely due to significant supply additions in the last one to two years,” said Puri.

Only Chennai and Pune recorded a decline in unsold luxury units, with drops of 4 percent and 11 percent, respectively. As of Q1 2025-end, total unsold inventory across the top seven cities stood at approximately 559,808 units, with affordable and luxury segments each accounting for nearly 20 percent.

(With Inputs From ANI)

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