India’s residential real estate market is witnessing a widening gap between housing supply and demand, with unsold inventory across the top seven cities rising 12 per cent year-on-year to 6.31 lakh units in the July-September 2026 quarter, according to ANAROCK Research.
Sales recovered marginally in the September quarter, but the rising property prices, affordability constraints and a growing concentration of new launches in premium housing are complicating the outlook for a sustained recovery.
According to ANAROCK Research, the available housing inventory across the top seven cities rose 12 percent YoY to 6.31 lakh units at the end of the July-September 2026 quarter, up from 5.62 lakh units a year earlier.
During the same period, housing sales increased 3 percent to 1,00,220 units, while new launches rose 18 percent to around 1.14 lakh units, the report said.
According to ANAROCK, the recovery also follows a weak June quarter. Further, the sales across the top seven cities fell 6 percent YoY to 90,715 units in April-June 2026, as uncertainty linked to the West Asia conflict and concerns around the information technology sector weighed on buyer sentiment. For the full FY26, sales stood at 4,04,005 units, the lowest annual level since FY23.
The recent 25-basis-point increase in the RBI’s repo rate could also add to affordability concerns. A huge impact will be on the buyers dependent on home loans, that form the masses.
Even where the immediate increase in monthly repayments is limited, higher borrowing costs can prompt prospective buyers to reassess budgets or defer purchases.
Developers have increasingly focused on premium and luxury homes, while the availability of lower-priced housing remains limited in several urban markets.
As per ANAROCK data, property prices across the top seven cities rose 7 percent year-on-year in the September quarter, with the National Capital Region recording the steepest increase at 12 percent.
Unsold Housing Inventory Rises 12% As New Launches Outpace Sales
