Demand for affordable houses (< Rs 40 lakh) is gradually improving in the top 7 cities of the country. According to the latest report of ANAROCK, the unsold stock of affordable homes fell by 19% to 1.13 lakh units at the end of Q1 FY 2025, from around 1.40 lakh units at the end of Q1 2024, a year ago.

Trend from affordable to luxury after the pandemic

Since the pandemic, the hesitation of low-income buyers to buy and the lack of new supply have affected the sales of affordable homes. But now the falling unsold stock in this segment indicates that the market is slowly moving towards recovery.

On the other hand, the unsold stock of luxury homes priced above Rs 1.5 crore grew by 24% to cross 1.13 lakh units from around 91,125 units at the end of Q1 2024. This increase is due to the increasing demand and new supply in this segment.

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City-wise performance in affordable housing segment

Bengaluru: The stock of affordable homes in the city declined the most with a massive 51% drop.

Chennai: The stock of affordable homes also declined by 44% in the city.

Hyderabad: In contrast, the unsold stock of affordable housing grew by 9% to around 1,815 units in this city.

Chennai and Pune performed better in the luxury segment

Chennai and Pune were the only two cities where the unsold stock of the luxury segment declined – a decline of 4% and 11%, respectively.

The remaining five cities recorded an increase in luxury stock.

Mid and premium segment housing situation

Unsold stock in mid-segment (Rs 40-80 lakh) homes also saw a 10% year-on-year decline – from 1.75 lakh units in Q1 2024 to 1.58 lakh units in Q1 2025.

On the other hand, unsold stock in the premium segment (Rs 80 lakh – Rs 1.5 crore) remained the same.

Overall stock down by 4%

Total unsold stock across all segments in the top 7 cities of the country saw a 4% decline – from 5.81 lakh units at the end of Q1 2024 to around 5.60 lakh units at the end of Q1 2025.

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% in 2019 to 18% in 2024, while its supply share dropped from 40% to 16% in the same period. However, a 19% dip in unsold stock hints at sustained demand led by end-users.”

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“In contrast, luxury housing soared, with its sales share rising from 7% in 2019 to 26% in 2024, and new supply share doubling from 11% to 26%,” 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% annually from about 91,125 units by Q1 2024-end to over 1.13 lakh units by Q1 2025-end,” he added.