The real estate sector in major metro cities of the country is in a dire state. Builders and real estate companies are concerned about the huge increase in the number of unsold houses in these cities. A recent report by Anarock revealed that 559,000 houses remain unsold across seven metro cities in the country.
As the real estate boom in metro cities slows down, it has been observed that the number of houses built has increased significantly compared to the number of buyers. In Hyderabad, the situation is particularly severe. Due to a lack of demand for affordable housing, the number of unsold flats has reached 98,000—no other city in the country faces such a dire situation regarding affordable housing. The number of unsold homes has increased by 177 percent, reaching a five-year high.
In other cities, Mumbai has 1.8 million unsold homes. Delhi, the national capital, has over 84,000 unsold homes. Bengaluru has 58,700, and Pune has 81,400 flats unsold. However, Bengaluru has seen a significant decrease in its inventory of unsold homes. Chennai has 29,000 unsold homes, while Kolkata has 28,000, reflecting relatively low inventory levels.
Since the COVID-19 pandemic, people’s demand for luxury homes has increased more than for affordable homes. Moreover, experts say developers are launching more luxury projects for higher profits. However, experts warn that since luxury homes are not being bought in large numbers, supply has outpaced demand, causing vacant homes to rise exponentially. With many people’s spending power decreasing, many prefer renting over buying, which is believed to be a key reason for the decline in demand
