India metro housing supply outpaces demand in 2026

Residential housing markets across India's major metropolitan areas are experiencing a trend where new property supply is outpacing demand. In the July–September 2026 quarter, sales in the top eight metro cities rose slightly by 1.0% to 122,854 units, while new launches increased by 7.6% to 113,391 units. This surge in supply has led to a 2.7% rise in unsold inventory, which reached 865,584 units.

Regional performance varies significantly. The Mumbai Metropolitan Region (MMR) remains the largest market, accounting for approximately 28% of sales and 30% of unsold inventory, with the highest average carpet prices. Hyderabad has emerged as a major hub for unsold stock, recording the second-highest inventory among top markets. In Hyderabad, unsold residential units rose to 108,700 by the end of Q2 2026, driven largely by a 53% year-on-year increase in new launches, particularly in the high-end segment.

While sales growth was observed in cities like Chennai, Ahmedabad, and Pune, other major markets like the National Capital Region (NCR) and Bangalore saw slight declines in sales volume. Despite the rising inventory, sales in cities like Hyderabad have still shown year-on-year growth, suggesting that the increase in stock is primarily a result of rapid new supply rather than a total collapse in demand.