India's premium and luxury housing inventory surges

Unsold residential inventory across eight major Indian markets increased by 4% year-on-year, reaching 525,695 units by the end of the first half of 2026. According to a Knight Frank India report, this accumulation is heavily concentrated in the premium and luxury segments, while lower-priced housing shows continued absorption.

In the premium segments, the ₹2-5 crore category saw a 43% jump in unsold inventory, while the ₹5-10 crore segment rose by 23%. The ultra-luxury ₹20-50 crore bracket experienced a 52% surge. Conversely, the sub-₹50 lakh segment saw a 7% decline and the ₹50 lakh-₹1 crore segment dropped by 3%.

Despite the rise in high-end inventory, the average age of unsold units improved to 13.5 quarters, down from 14.3 quarters the previous year, suggesting buyers are favoring properties closer to completion. The Quarters to Sell (QTS) metric for the ₹2-5 crore segment stood at 4.4 quarters, indicating that sales velocity remains steady and does not currently signal widespread developer distress or an immediate need for deep discounts.