Hyderabad emerged as the only major city among India’s top seven to register a rise in unsold affordable housing inventory between Q1 2024 and Q1 2025. According to ANAROCK Research, the city recorded a 9 per cent increase in unsold stock priced below Rs 40 lakh, reaching approximately 1,815 units by the end of Q1 2025, compared to 1,660 units a year earlier.

This contrasts with a broader trend seen across major real estate markets, where the affordable housing segment showed signs of revival. Cities like Bengaluru and Chennai led the recovery, with unsold stock in this price segment declining by 51 per cent and 44 per cent, respectively. Pune and NCR followed, posting declines of 28 per cent and 22 per cent. The overall unsold affordable housing stock across the top seven cities dropped 19 per cent, from 1.40 lakh units in Q1 2024 to 1.13 lakh units by Q1 2025.

Despite the positive trajectory in most markets, Hyderabad’s increase in unsold stock signals a slower recovery in the affordable housing segment within the city. In comparison, MMR and Kolkata reported declines of 11 per cent and 20 per cent, respectively, while Chennai's stock nearly halved.

In contrast, luxury housing inventory rose sharply across most cities, driven by a surge in new launches and tempered investor demand. Hyderabad’s luxury housing stock—defined as units priced above Rs 1.5 crore—grew 6 per cent annually. The city’s performance aligns with broader national trends where total unsold luxury inventory increased by 24 per cent, from 91,125 units to 1.13 lakh units over the same period.

While Chennai and Pune were the only cities to witness a dip in unsold luxury housing—by 4 per cent and 11 per cent respectively—regions like NCR, MMR, Bengaluru, and Kolkata joined Hyderabad in recording an upward shift in this segment.

Overall, the total unsold residential inventory across the top seven Indian cities stood at approximately 5.59 lakh units by Q1 2025-end, down 4 per cent from 5.80 lakh units the previous year. Of this, the affordable and luxury housing categories each held about 20 per cent share.

ANAROCK Chairman Anuj Puri observed that the affordable segment was the hardest hit post-pandemic, witnessing a drop in both launches and buyer interest. He noted that the segment’s share of total sales declined from 38 per cent in 2019 to 18 per cent in 2024, while its share in new launches dropped from 40 per cent to 16 per cent. However, the latest inventory reduction across cities indicates a steady return of end-user demand.

Conversely, luxury housing saw increased traction, with its share of sales rising from 7 per cent in 2019 to 26 per cent in 2024, and new launches doubling from 11 per cent to 26 per cent. Yet, the significant increase in supply—amid investor caution due to global economic headwinds—contributed to the current inventory build-up.

Among mid-segment categories, homes priced between Rs 40 lakh and Rs 1.5 crore witnessed more modest changes. The Rs 40–80 lakh segment saw a 10 per cent drop in unsold stock, while the Rs 80 lakh–1.5 crore category remained flat.