India's affordable home stock falls while premium listings surge by 43%
New data shows unsold homes under Rs 1 crore shrinking, whereas luxury inventory grew sharply, especially in the Rs 2-5 crore bracket.
Knight Frank India reports that the overall pool of unsold homes across eight major markets increased 4 percent to 5,25,695 units in the first half of 2026, extending a trend that began in 2020. Affordable housing below Rs 1 crore continued to contract, with the sub-Rs 50 lakh category down 7 percent and the Rs 50 lakh-Rs 1 crore segment down 3 percent, driven by limited new supply and steady buyer demand. Meanwhile, the Rs 1-2 crore segment rose 12 percent and the Rs 2-5 crore tier surged 43 percent, accompanied by a 19 percent sales increase in that bracket.
Luxury segments (Rs 5-10 crore, Rs 20-50 crore, and above Rs 50 crore) also posted double-digit inventory growth, though their small stock makes turnover estimates volatile. The average time to clear all listings slipped to 6.0 quarters, with city-level variations ranging from 4.0 quarters in Pune to 8.1 quarters in Ahmedabad.
Why it matters
The shift signals tightening supply for affordable homes and growing excess in the premium market, affecting buyers and developers.
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