Unsold housing inventory in India’s top seven cities increased by 4% last year, driven by new home supply exceeding buyer demand, as per 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 illustrates a combination of slower sales momentum and rising new housing supply, widening the gap between available homes and actual sales.
Decline in Housing Sales
The report points to a significant drop in housing sales across major urban markets, with home sales declining by 14% year-on-year to 395,625 units in 2025. In contrast, the launch of new homes increased by 2%, reaching 419,170 units. This growing disparity between supply and absorption signifies a challenging market for sellers. While some cities struggle with unsold inventory, others are successfully managing to reduce their stock.
City-Wise Inventory Trends
City-specific data reveals a varied landscape concerning 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 recorded one of the sharpest increases, with unsold homes surging by 23% to 64,863 units, up from 52,807 units. Pune also saw an increase, with inventory going up by 3% to 83,491 units. Chennai’s unsold units climbed 18% to 33,434, while Kolkata saw a 9% increase, bringing its total to 29,007 units.
In contrast, the Mumbai Metropolitan Region (MMR) and Hyderabad reported slight improvements. In MMR, unsold homes decreased by 1% to 179,228 units, while Hyderabad noted a 2% decline, with unsold inventory dropping 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 indicates that lower interest rates on home loans could encourage buyer interest, provided residential property prices remain affordable. Despite some reductions in inventory in select markets, overall pressure on unsold stock remains due to the imbalance between new launches and actual sales.
Digihunt is not a financial advisor, and this is not investment advice.