Mumbai, April 14, 2025: Affordable housing took a major hit post-pandemic as buyers in this segment adopted a cautious approach, with new supply and sales plummeting in recent years. But latest ANAROCK research highlights a promising trend: unsold inventory in the affordable housing segment (<INR 40 lakh) fell by 19 per cent across the top 7 cities in the past year, from 1.40 lakh units (Q1 2024-end) to 1.13 lakh units (Q1 2025-end).
Meanwhile, luxury housing (>INR 1.5 Cr) saw a 24 per cent surge in unsold stock, rising from 91,125 units (Q1 2024-end) to over 1.13 lakh units (Q1 2025-end), fuelled by robust demand and new supply.
City-wise, Bengaluru led the affordable category recovery with a sharp 51 per cent drop in unsold stock, followed by Chennai’s 44 per cent decline. Hyderabad was the only city to witness a 9 per cent surge in its affordable housing stock in the period – to approx. 1,815 units by Q1 2025-end.
Anuj Puri, Chairman – ANAROCK Group, says, “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 per cent in 2019 to 18 per cent in 2024, while its supply share dropped from 40 per cent to 16 per cent in the same period. However, a 19 per cent dip in unsold stock hints at sustained demand led by end-users.”
“In contrast, luxury housing soared, with its sales share rising from 7 per cent in 2019 to 26 per cent in 2024, and new supply share doubling from 11 per cent to 26 per cent,” says Puri. “Nevertheless, the segment saw unsold inventory pile up due to increased supply and cautious investor sentiment amid the ongoing global economic uncertainty. Our data shows that unsold stock of luxury housing – units priced over INR 1.5 Cr – rose 24 per cent annually from about 91,125 units by Q1 2024-end to over 1.13 lakh units by Q1 2025-end.”
Among the top 7 cities, Chennai and Pune were the only cities to see their unsold luxury stock decline in the period, by 4 per cent and 11 per cent, respectively. While Chennai’s current unsold luxury stock is at 2,453 units, Pune’s is at 3,668 units. NCR, MMR, Kolkata, Hyderabad and Bengaluru also saw their unsold luxury stock rise.
“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,” says Puri.
As of Q1 2025-end, a cumulative total of approx. 5,59,808 units are unsold across the top 7 cities. Of this, approx. 1,12,744 units fall in the affordable housing category; the luxury segment has approx. 1,13,193 unsold units. Together, each of these two segments account for almost 20 per cent of the total unsold stock.
In MMR, unsold affordable housing stock declined 11 per cent between Q1 2024 and Q1 2025, while luxury stock rose by 6 per cent in the period. NCR saw a 22 per cent decline in its unsold affordable stock, while luxury stock swelled by over 78 per cent.
Bengaluru saw its affordable stock decline by 51 per cent and its luxury stock rise by 57 per cent in the period. Chennai saw an over 44 per cent yearly decline in unsold affordable stock and a 4 per cent reduction in luxury stock.
Pune saw an almost 28 per cent annual dip in its unsold affordable stock, and a 11 per cent decline in luxury stock. In Kolkata, unsold affordable housing stock declined by 20per cent, while luxury stock rose by 96 per cent. Hyderabad was the only city to see its unsold affordable stock jump by 9 per cent, while its luxury stock increased by 6 per cent.