Unsold housing inventory in India climbed to approximately 18 months in the first quarter of 2026, marking a significant accumulation of unsold units as residential supply has begun to outstrip demand.
The data, highlighted in a report by Anand Rathi, points to a growing divergence between the volume of new launches and actual sales activity across the country's real estate sector.
The report underscores a widening gap between housing sales volumes and value growth over the past two years.
While price appreciation has continued in many segments, the physical absorption of units has slowed, leading to a buildup of stock that developers must now manage.
This shift suggests that the rapid expansion in project launches during the previous cycle is now meeting a more cautious buyer base.
For investors and lenders, the rising inventory levels present a potential headwind.