The real estate market in India’s major metro cities is facing a serious challenge. Builders and companies are worried about the growing number of unsold homes. A report from Anarock shows that there are 559,000 unsold houses across seven major cities.
The housing boom in metro areas has slowed, with more homes being built than bought. Hyderabad is experiencing a particularly tough situation. The lack of demand for affordable housing has left 98,000 unsold flats in the city, the highest in the country. This is a 177 percent increase, marking a five-year peak.
Mumbai has 1.8 million unsold homes, while Delhi has over 84,000. Bengaluru has 58,700 unsold homes, but it has reduced its inventory significantly. Pune has 81,400 unsold flats. Chennai and Kolkata have relatively low inventories, with 29,000 and 28,000 unsold homes, respectively.
Since the COVID-19 pandemic, interest in luxury homes has risen more than in affordable housing. Developers are focusing on luxury projects for better profits. However, experts warn that the supply of luxury homes exceeds demand, leading to many vacant properties. With reduced spending power, many people prefer renting over buying, contributing to the decrease in demand.
