New supply outpaces sales as premium homes drive demand

Unsold housing inventory rises to 5.25 lakh units in first half of 2026

Property Pulse

Housing inventory is gradually building up across India’s major residential markets, with unsold stock rising to 5.25 lakh units in the first half of 2026, according to Knight Frank India. The nearly 4 per cent year-on-year increase reflects new housing supply continuing to edge ahead of sales, rather than a broad slowdown in the market.

Developers launched around 1,87,350 homes between January and June, a 4 per cent year-on-year increase, while sales stood at 1,71,471 units. The gap between new launches and sales contributed to the rise in unsold stock.

Knight Frank said housing inventory has been gradually increasing since 2022. While urbanisation, infrastructure development and economic stability continue to support residential demand, supply is growing faster than demand in some markets.

Premium segment leads

Premium housing continued to outperform the broader market. Homes priced above ₹1 crore accounted for 54 per cent of total sales in H1 2026, compared with 49 per cent a year earlier.

The ₹1-2 crore category recorded the highest sales, with 50,488 units sold nationally. Bengaluru led this segment with 12,808 sales, followed by Mumbai at 10,651 and Hyderabad at 8,588 units.

Mumbai recorded the highest overall housing sales at 47,355 units, followed by Bengaluru with 27,968, Pune with 24,890 and Delhi-NCR with 24,862. Delhi-NCR sales declined 7 per cent year-on-year, although demand remained strong in the ₹2-20 crore segment.

Affordable housing under pressure

Sales of homes priced below ₹50 lakh declined 15 per cent to 32,063 units, accounting for 19 per cent of total sales. The ₹50 lakh-₹1 crore segment fell 5 per cent to 46,490 units.

The rise in inventory is therefore not uniform across the market. Premium housing continues to attract buyers, while affordability-sensitive segments are facing greater pressure.

With supply exceeding sales in several markets, developers with higher inventory may increasingly turn to flexible payment plans and other incentives to accelerate sales. Knight Frank, however, describes the overall housing market as stable rather than alarming, with premium housing continuing to support demand.

 Inventory Pulse

• 5.25 lakh — unsold homes in eight markets.
• 1,87,350 — homes launched in H1 2026.
• 1,71,471 — homes sold in H1 2026.
• 54% — share of homes above ₹1 crore in sales.
• 50,488 — ₹1–2 crore homes sold nationally.
• 8,588 — ₹1–2 crore homes sold in Hyderabad.