Investors should diversify across micromarkets for better returns

End users should prioritise ready-to-move or near-completion projects to avoid delays

- SANJEEV SINHA

‘The housing market remains resilient, with unsold inventory across the top eight cities rising just 4 per cent year-on-year (Y-0-Y) to 506,000 units in the third quarter (Q3) of 2025.

The quarters-to-sell (QTS) ratio of 5.8 quarters (about 17.4 months) also remains comfortably within the healthy range of 18-24 months, according to a recent report by PropEquity, an NSE-listed data analytics firm. This overall stability, however, masks emerging risks in specific segments. Unsold homes in the ₹2-5 crore bracket have surged 47 percent Yo-Y, requiring end-users and investors to proceed with caution.

Post-Covid surge in demand

Data from Anarock shows that premium and luxury segments have expanded sharply since 2019, with their share of total sales rising from 7 percent in Q1 2019 to 21 percent in Q1 2024. This trend of expanding share has continued in 2025. “These segments account for 38 per cent of new supply across the top seven cities. The momentum is driven by rising affluence, strong demand from HNIs (high net worth individuals) and NRIs (nonresident Indians), an increased appetite for larger, well-located homes by branded developers, and support from the economy. Even as Q3 2025 sales volumes dipped 9 per cent, total market value rose 14 percent, driven entirely by the premium segment,” says Santhosh Kumar, vice chairman, Anarock Group.

Rising premium inventory