Housing Inventory Update: Increase in Unsold Homes by 4% in Major Cities as New Supply Surpasses Demand
Unsold housing inventory in India’s top seven cities saw a notable increase of 4% last year, as new home supply outpaced buyer demand, according to a report by real estate consultant Anarock. By the end of 2025, the total number of unsold residential units in the primary market reached 576,617, up from 553,073 units the previous year. This trend reflects a combination of slower sales momentum and a rise in new housing supply, leading to a widening gap between available homes and actual sales.
Decline in Housing Sales
The report highlights a significant decline in housing sales across major urban markets, with home sales dropping by 14% year-on-year to 395,625 units in 2025. This downturn contrasts with a 2% increase in the launch of new homes, which reached 419,170 units. The disparity between supply and absorption has become more pronounced, indicating a challenging market for sellers. The data suggests that while some cities are experiencing a build-up of unsold inventory, others are managing to reduce their stock.
City-Wise Inventory Trends
City-specific data reveals a mixed landscape regarding unsold housing inventory. In the Delhi-NCR region, unsold units rose by 5% to 90,455, up from 85,901 units the previous year. Bengaluru experienced one of the sharpest increases, with unsold homes surging by 23% to 64,863 units from 52,807 units. Pune also saw a rise, with inventory increasing by 3% to 83,491 units. Chennai’s unsold units climbed 18% to 33,434, while Kolkata recorded a 9% increase, bringing its total to 29,007 units.
Conversely, the Mumbai Metropolitan Region (MMR) and Hyderabad reported slight improvements. In MMR, unsold homes decreased by 1% to 179,228 units, while Hyderabad saw a 2% decline, with unsold inventory falling to 96,140 units.
Future Outlook for Housing Demand
Looking ahead, Anarock suggests that the outlook for housing demand may improve if borrowing costs decrease. The consultant emphasizes that lower interest rates on home loans could stimulate buyer interest, provided that residential property prices remain reasonable. Despite some easing in inventory in select markets, the overall pressure on unsold stock persists, primarily due to the imbalance between new launches and actual sales.
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