Affordable housing stock shrinks, premium home inventory jumps 43%: Report
For homebuyers, the price of a property can determine not just what is affordable but also how quickly homes in that segment are selling.The latest housing market data shows a clear divide: unsold homes priced below Rs 1 crore are being absorbed, while inventory is building up more rapidly in higher-priced segments.Unsold residential inventory across eight major Indian markets rose 4 per cent year-on-year to 5,25,695 units at the end of the first half of 2026, according to a report by Knight Frank India.The increase extends a trend of inventory accumulation seen since 2020.
However, the movement is not uniform across price categories.Homes below Rs 1 crore see inventory declineUnsold inventory in the sub-Rs 50 lakh category fell 7 per cent year-on-year to 1,71,363 units in H1 2026. Inventory in the Rs 50 lakh-Rs 1 crore segment declined 3 per cent to 1,34,841 units.The report attributed the decline to limited new supply and continued absorption in these price segments.The trend reverses as property prices rise.
Inventory in the Rs 1-2 crore category increased 12 per cent year-on-year, while the Rs 2-5 crore segment saw a much sharper 43 per cent rise to 65,671 units.Unsold stock in the Rs 5-10 crore category increased 23 per cent, while the Rs 20-50 crore segment recorded a 52 per cent increase.This means the overall 4 per cent rise in unsold housing stock masks significant differences between price segments, with a greater share of inventory accumulating in premium and luxury housing.How long could it take to sell the existing stock?Knight Frank uses a measure called Quarters to Sell (QTS) to estimate how long the existing inventory could take to clear at the average sales pace of the previous eight quarters.The overall QTS stood at 6.0 quarters in H1 2026, up from 5.8 quarters at the end of 2025.
The increase came as inventory rose while sales remained largely flat.At the city level, Ahmedabad recorded the highest QTS at 8.1 quarters, followed by the National Capital Region at 7.6 quarters. Pune had the lowest QTS at 4.0 quarters, while Chennai stood at 4.5 quarters.A higher QTS indicates a longer estimated period to clear the existing stock based on the recent sales pace.The age of unsold inventory, however, improved.
It fell to 13.5 quarters in H1 2026 from 14.3 quarters a year earlier, indicating that older housing stock was gradually being absorbed. The report said buyers were increasingly preferring properties closer to completion.Premium housing sees both higher inventory and salesThe Rs 2-5 crore segment stands out because its rising inventory has been accompanied by higher sales.Although unsold inventory in this category increased 43 per cent year-on-year, sales rose 19 per cent in H1 2026.
Its QTS stood at 4.4 quarters.At the ultra-luxury end, however, the estimated time to sell existing stock was considerably higher. QTS stood at 14.2 quarters for properties priced between Rs 20 crore and Rs 50 crore, and 9.7 quarters for homes priced above Rs 50 crore.Knight Frank said these figures need to be interpreted carefully because the combined inventory in these two segments is only around 2,081 units.
With such a small inventory base, the QTS figures can be more sensitive to individual project completions and transactions.The report said the rising inventory and its increasing concentration in premium segments warrant close monitoring, even as lower-priced housing continues to record inventory declines.Ready to Make a Smarter Property Decision?
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