B'luru leads surge in unsold homes as India’s housing inventory rises in 2025

Bengaluru’s unsold homes surged 23% in 2025, driving a 4% rise across seven cities as sales fell 14% amid rising prices and IT sector layoffs

Bengaluru has emerged as the epicenter of India’s housing inventory surge in 2025, recording a sharp 23% jump in unsold residential units even as overall stock across the top seven cities rose by 4%. According to data from Anarock Research, unsold housing inventory in these markets touched 5.77 lakh units by the end of the year, underscoring the impact of moderating demand and a steady influx of new supply.

Bengaluru’s Inventory Challenge
The city’s unsold stock spike stands out against the relatively modest changes in other metros. While Hyderabad posted a 2% decline in unsold homes and the Mumbai Metropolitan Region (MMR) saw a 1% dip, Bengaluru’s inventory ballooned, driven by aggressive new launches and slowing absorption. With developers continuing to bet on the city’s long‑term growth potential, Bengaluru accounted for a significant share of fresh supply in 2025, alongside MMR. Together, the two markets contributed nearly 48% of all new launches across the top seven cities.

Prices and Demand Trends
Despite rising inventory, housing prices continued to firm up. Average rates across the seven cities climbed 8% year‑on‑year, from ₹8,590 per sq. ft. in late 2024 to ₹9,260 per sq. ft. by the end of 2025. Delhi‑NCR led with a 23% surge in average prices, while Bengaluru saw single‑digit appreciation in line with most other metros. However, the combination of higher property prices, layoffs in the IT sector, and broader economic uncertainties dented buyer sentiment, contributing to the city’s swelling unsold stock.

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National Context
Across India’s top markets, housing sales fell 14% in 2025, with 3,95,625 units sold compared to 4,59,645 units in 2024. Interestingly, despite fewer transactions, the overall sales value rose 6% to over ₹6 lakh crore, reflecting the impact of rising prices. MMR remained the largest market with 1,27,875 units sold, though it registered an 18% decline. Pune followed with 65,135 units, down 20% year‑on‑year. Together, MMR and Pune accounted for nearly half of all sales, while Bengaluru, Hyderabad, and NCR contributed significantly to the remaining share.

Outlook
For Bengaluru, the sharp rise in unsold homes highlights a mismatch between supply and demand. Developers may need to recalibrate strategies, focusing on affordability and buyer confidence to prevent further inventory buildup. With the city continuing to attract new launches, balancing growth with absorption will be critical to sustaining its real estate momentum in 2026.

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