Hyderabad is the only major city in India’s top seven to see an increase in unsold affordable homes between the first quarter (Q1) of 2024 and Q1 2025. According to ANAROCK Research, unsold homes priced below Rs 40 lakh in Hyderabad rose by 9%, from around 1,660 units to approximately 1,815 units over the year.
This goes against the trend in other big cities, where affordable housing inventory is decreasing. In Bengaluru and Chennai, unsold homes in this price range dropped by 51% and 44%, respectively. Pune and the National Capital Region (NCR) also saw drops of 28% and 22%. Overall, unsold affordable homes across the top seven cities fell by 19%, from 1.4 lakh units in Q1 2024 to 1.13 lakh units in Q1 2025.
Hyderabad’s increase suggests a slower recovery for affordable housing in the city. Meanwhile, other cities like Mumbai Metropolitan Region (MMR) and Kolkata saw declines of 11% and 20%. Chennai’s unsold affordable homes almost halved.
While affordable housing is struggling in Hyderabad, the luxury housing segment—homes priced over Rs 1.5 crore—is growing. Hyderabad saw a 6% rise in unsold luxury homes. Across India, unsold luxury housing inventory grew by 24%, from 91,125 units to 1.13 lakh units.
Chennai and Pune were the only cities where unsold luxury homes dropped—by 4% and 11% respectively. Other cities like NCR, MMR, Bengaluru, Kolkata, and Hyderabad all recorded increases in this segment.
In total, the top seven Indian cities had around 5.59 lakh unsold homes by the end of Q1 2025, down 4% from 5.80 lakh units a year earlier. Affordable and luxury homes each made up about 20% of this total.
ANAROCK Chairman Anuj Puri said the affordable housing market was hit hardest after the pandemic. There were fewer new projects and less buyer interest. The segment’s share of total home sales dropped from 38% in 2019 to just 18% in 2024. New project launches also declined from 40% to 16%. However, the recent drop in unsold inventory in most cities suggests that demand is slowly returning.
On the other hand, luxury homes have become more popular. Their share of total sales rose from 7% in 2019 to 26% in 2024. New luxury home launches also doubled from 11% to 26%. Still, a large number of new launches, along with cautious investor behavior due to global economic concerns, led to an increase in unsold luxury homes.
Mid-range homes, priced between Rs 40 lakh and Rs 1.5 crore, saw smaller changes. Homes in the Rs 40–80 lakh range had a 10% drop in unsold units, while homes in the Rs 80 lakh–1.5 crore range stayed about the same.
