The unsold inventory across the eight Indian markets reached 525,695 units at the end of H1 2026, a 4% YoY increase, extending the accumulation underway since 2020. The segment distribution is instructive: the sub-INR 5 mn category declined 7% YoY to 171,363 units and the INR 5-10 mn segment contracted 3% to 134,841 units, reflecting limited new supply and continued absorption, according to Knight Frank India.

In contrast, the INR 10-20 mn segment expanded 12% YoY, the INR 20-50 mn category rose a significant 43% to 65,671 units, the INR 50-100 mn segment grew 23%, and the INR 200-500 mn  category surged 52% YoY. Rising inventory levels and growing premium segment concentration together constitute conditions that warrant close monitoring. Interestingly, the age of unsold inventory stands at 13.5 quarters, down from 14.3 quarters in H1 2025, signaling that older inventory is getting consumed as buyers increasingly prefer to acquire homes that are closer to completion. 

Inventory trends must be assessed alongside sales velocity to provide an accurate picture of market health. The Quarters to Sell metric estimates the time to clear existing inventory at the trailing eight-quarter average sales pace, with lower values indicating healthier conditions. As of H1 2026, aggregate QTS stood at 6.0 quarters, up from 5.8 quarters at end 2025, reflecting the combined effect of rising inventory and near-flat sales. At the city level, Ahmedabad registers the highest QTS at 8.1 quarters, followed by NCR at 7.6 quarters, reflecting markets where inventory has accumulated more rapidly relative to sales velocity. Pune records the lowest at 4.0 quarters, indicating the strongest absorption dynamics, with Chennai close behind at 4.5 quarters.

Within the ticket-size breakdown, the INR 20-50 mn segment presents the most notable dynamic. Despite a 43% YoY inventory increase to 65,671 units, it now constitutes 20% of sales which have grown 19% YoY in H1 2026, highest among the top four ticket-size segments by share of sales. QTS for this category stands at 4.4 quarters, suggesting demand broadly keeps pace with supply at current pricing. This is reassuring near-term, but the pace of inventory accumulation warrants attention.

At the upper end, the INR 200-500 mn segment registered a QTS of 14.2 quarters and the above-INR-500 mn category shows 9.7 quarters. These readings require careful interpretation: combined inventory across these two ultra-luxury segments amounts to approximately 2,081 units, at which scale individual project completions and transactions significantly influence the metric. These elevated readings reflect the volatility of thin volume segments rather than a broad demand-supply crisis.