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Affordable homes see declining inventory in Q1 2025, while luxury housing faces oversupply. Get the full picture of India’s post-pandemic real estate trends.



As India’s real estate sector steps into the first quarter of FY 2025, a distinct shift is becoming more apparent than ever before. The housing market is now sharply polarized—affordable housing is shrinking, while luxury housing is overflowing with supply.

A Post-Pandemic Housing Recalibration
After the pandemic, many low-income buyers grew hesitant to invest in property. Simultaneously, developers pulled back on launching new affordable projects. The result? A dramatic stall in the affordable housing market.

But that trend seems to be reversing now, as new data from ANAROCK suggests that demand is gradually reviving. The unsold stock of affordable homes (under ₹40 lakh) fell by 19%, dropping from 1.40 lakh units in Q1 2024 to 1.13 lakh units in Q1 2025 across the top 7 cities.

On the flip side, the luxury segment (above ₹1.5 crore) tells a different story. Fueled by new launches and strong demand from affluent buyers, unsold inventory in this segment grew by 24%, reaching over 1.13 lakh units compared to about 91,125 units a year ago.

Where Affordable Housing is Shrinking Fastest
According to the report, some cities saw particularly steep drops in unsold affordable stock:
- Bengaluru: Witnessed the most significant drop—a 51% plunge.
- Chennai: Reported a sharp 44% fall.
- Hyderabad: Bucked the trend, showing a 9% rise in unsold affordable inventory.

Luxury Segment’s Mixed City-Wise Performance
When it comes to high-end housing, Chennai and Pune stood out. These two cities reduced their luxury unsold inventory—by 4% and 11%, respectively. In contrast, the remaining five cities under ANAROCK’s radar witnessed an increase in luxury home stock, due to aggressive launches and investor caution amid economic uncertainty.

Mid-Segment & Premium Housing: A Balanced Outlook
Mid-segment housing (₹40–80 lakh) experienced a 10% drop in unsold stock, shrinking from 1.75 lakh units in Q1 2024 to 1.58 lakh units in Q1 2025. Premium housing (₹80 lakh–₹1.5 crore) remained unchanged, suggesting a stable demand-supply equilibrium.

Market-Wide Trends: What the Numbers Say
In total, unsold stock across all segments in the top 7 Indian cities declined by 4%, dropping from 5.81 lakh units to 5.60 lakh units year-on-year.

Anuj Puri, Chairman of ANAROCK Group, notes: “Affordable housing took the biggest hit during the pandemic. Sales dropped, and launches slowed down significantly. Its sales share fell from 38% in 2019 to 18% in 2024. But the 19% dip in unsold stock now hints at a revival led by end-users, not just investors.”

“Meanwhile, luxury housing soared. Its sales share grew from 7% in 2019 to 26% in 2024, and supply doubled. But with that came increased inventory build-up as global economic uncertainty led to cautious investing.”

Affordable homes see declining inventory in Q1 2025, while luxury housing faces oversupply. Get the full picture of India’s post-pandemic real estate trends.

Indian Housing Market Q1 2025 | A Tale of Two Extremes

<p>As India’s real estate sector steps into the first quarter of FY 2025, a distinct shift is becoming more apparent than ever before. The housing market is now sharply polarized—affordable housing is shrinking, while luxury housing is overflowing with supply.</p>

<h2>A Post-Pandemic Housing Recalibration</h2>
<p>After the pandemic, many low-income buyers grew hesitant to invest in property. Simultaneously, developers pulled back on launching new affordable projects. The result? A dramatic stall in the affordable housing market.</p>

<p>But that trend seems to be reversing now, as new data from <a href = "https://www.anarock.com/">ANAROCK</a> suggests that demand is gradually reviving. The unsold stock of affordable homes (under ₹40 lakh) fell by 19%, dropping from 1.40 lakh units in Q1 2024 to 1.13 lakh units in Q1 2025 across the top 7 cities.</p>

<p>On the flip side, the luxury segment (above ₹1.5 crore) tells a different story. Fueled by new launches and strong demand from affluent buyers, unsold inventory in this segment grew by 24%, reaching over 1.13 lakh units compared to about 91,125 units a year ago.</p>

<h2>Where Affordable Housing is Shrinking Fastest</h2>
<p>According to the report, some cities saw particularly steep drops in unsold affordable stock:</p>

<p><strong>Bengaluru:</strong> Witnessed the most significant drop—a 51% plunge.</p>
<p><strong>Chennai:</strong> Reported a sharp 44% fall.</p>
<p><strong>Hyderabad:</strong> Bucked the trend, showing a 9% rise in unsold affordable inventory.</p>

<h2>Luxury Segment’s Mixed City-Wise Performance</h2>
<p>When it comes to high-end housing, Chennai and Pune stood out. These two cities reduced their luxury unsold inventory—by 4% and 11%, respectively.</p>

<p>In contrast, the remaining five cities under ANAROCK’s radar witnessed an increase in luxury home stock, due to aggressive launches and investor caution amid economic uncertainty.</p>

<h2>Mid-Segment & Premium Housing: A Balanced Outlook</h2>
<p>Mid-segment housing (₹40–80 lakh) experienced a 10% drop in unsold stock, shrinking from 1.75 lakh units in Q1 2024 to 1.58 lakh units in Q1 2025.</p>

<p>Premium housing (₹80 lakh–₹1.5 crore) remained unchanged, suggesting a stable demand-supply equilibrium.</p>

<h2>Market-Wide Trends: What the Numbers Say</h2>
<p>In total, unsold stock across all segments in the top 7 Indian cities declined by 4%, dropping from 5.81 lakh units to 5.60 lakh units year-on-year.</p>

<p>Anuj Puri, Chairman of ANAROCK Group, notes:</p>

<p><i style = "margin: 2px 0;">“Affordable housing took the biggest hit during the pandemic. Sales dropped, and launches slowed down significantly. Its sales share fell from 38% in 2019 to 18% in 2024. But the 19% dip in unsold stock now hints at a revival led by end-users, not just investors.”</i></p>

<p><i style = "margin: 2px 0;">“Meanwhile, luxury housing soared. Its sales share grew from 7% in 2019 to 26% in 2024, and supply doubled. But with that came increased inventory build-up as global economic uncertainty led to cautious investing.”,/i></p>


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