The unsold inventory in the affordable housing segment in the top seven cities dropped by 19 per cent in the first quarter of the calendar year 2025 (Q1CY25).
According to a report by real estate consultancy firm Anarock, the unsold inventory in the segment fell to 1.13 lakh units at the end of Q1 2025 from 1.40 lakh units at the end of Q1 2024.
Notably, this comes even as affordable housing (priced at less than Rs 40 lakhs) had taken a hit post the Covid-19 pandemic with buyers in this segment adopting a cautious approach, and new supply and sales plummeting in recent years.
Bengaluru led the recovery, recording a steep 51 per cent drop in unsold affordable stock from 6,736 units in Q1 2024 to 3,323 units in Q1 2025. It was followed by Chennai with a 44 percent drop in unsold affordable units and Pune at 28 per cent.
Only Hyderabad saw a 9 per cent increase in unsold inventory in the affordable segment.
The report also highlighted that a 10 per cent drop was also recorded in the mid-sized segment priced between Rs 40 lakh and Rs 80 lakh, with unsold units falling from 174,572 units at the end of Q1 2024 to 157,741 in the current period.
In contrast, luxury housing units priced over Rs 1.5 crore saw a 24 per cent surge in unsold stock, rising from 91,125 units at the end of Q1 2024 to over 1.13 lakh units in Q1 2025, fuelled by robust demand and inventory pile up.
Luxury housing had soared post the pandemic 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.
In the city-wise analysis, Kolkata and the National Capital Region (NCR) saw the highest rise in unsold luxury inventory at 96 per cent and 78 per cent, respectively, followed by Bengaluru, which saw a 57 per cent surge in unsold luxury units.
Only Chennai and Pune saw their unsold luxury stock decline in the period, by 4 per cent and 11 per cent respectively.