Unsold Housing Inventory Rises 6.3% in H1 2026; Affordable Home Sales Decline 32%

 

By The Realty Times | Real Estate News

NEW DELHI : India’s residential real estate market is witnessing a shift towards premium housing, while demand for affordable homes continues to face pressure. Rising property prices and a growing gap between new launches and sales are adding to concerns over housing affordability.

India’s housing market recorded a rise in unsold residential inventory during the first half of 2026, even as sales of affordable homes witnessed a significant decline. The increase in unsold stock highlights the changing dynamics of the real estate sector, where demand is increasingly concentrated in higher-priced residential properties.

According to a report by JLL, sales of homes priced below ₹50 lakh declined by 32% during the first half of 2026 compared with the corresponding period last year. The trend reflects the growing challenges faced by homebuyers in the affordable housing segment, particularly amid rising property prices and household expenses.

The decline in affordable housing sales points to a widening gap between property prices and the purchasing power of middle- and lower-income households. Higher land costs, construction expenses and borrowing costs have made it increasingly difficult for developers to offer homes at affordable prices.

At the same time, prospective homebuyers are facing challenges in arranging down payments and managing monthly home loan instalments. These factors are affecting demand for properties in the lower price brackets.

The slowdown also raises concerns about the availability of budget-friendly housing in major urban markets, where demand for reasonably priced homes remains significant.

While affordable housing sales have weakened, the premium residential segment has continued to attract buyers. Homes priced above ₹1 crore have gained a larger share of overall housing sales, reflecting a shift in purchasing preferences towards higher-value properties.

This trend has encouraged developers to focus on premium and luxury residential projects, particularly in major cities and emerging urban corridors.

However, the growing concentration of new launches in higher price categories could create an imbalance between the supply of premium homes and the demand for affordable housing.

The increase in unsold housing stock indicates that residential supply is outpacing demand in certain segments of the market. When new project launches exceed the number of homes sold, developers are left with a larger inventory of completed or under-construction properties awaiting buyers.

Higher inventory levels can increase the time required to sell homes and put pressure on developers to offer discounts, flexible payment plans and other incentives.

The impact, however, varies across cities and price categories. Projects in locations with strong employment opportunities, infrastructure development and connectivity may continue to attract buyers, while properties in less active markets could take longer to sell.