New housing supply outpaces buyer demand for 16th consecutive quarter

Housing supply continues to significantly outpace demand across India's major metropolitan areas, marking the 16th consecutive quarter of this imbalance, according to data from property consultancy Knight Frank.

Sales across the country's eight largest cities held steady at 258,238 units during the latest quarter, with minimal movement compared to the previous period. However, the supply-demand mismatch reflects a deeper market divergence, with new residential launches continuing to accelerate while absorption rates remain sluggish in most markets.

The National Capital Region emerged as a particular concern, with sales declining 11 per cent during the quarter. This softness in the NCR market underscores challenges in converting new inventory into actual transactions, even as developers continue to bring projects to market.

One notable bright spot is the sustained growth in the luxury segment. Properties priced above ₹1 crore have expanded their share of overall demand, suggesting that high-net-worth buyers remain active despite broader market headwinds. This trend points to a bifurcated market where ultra-premium properties are finding takers while mid-range and affordable housing segments struggle with slower absorption rates.

The persistent imbalance between launches and sales raises questions about inventory management and developer strategies, as the market grapples with excess supply in many segments and geographies.