MUMBAI, Oct. 7 -- In a pan-India real estate slowdown, the unsold residential inventory in the country has increased by 2.7% to over 8,65,000 units at the end of the first half (H1) of the ongoing financial year. Approximately 30% of this unsold housing stock is located in the Mumbai Metropolitan Region (MMR). According to data analysed and compiled by Liases Foras, the only non-brokerage real estate research company in India, housing sales in MMR were flat at 34,552 units, reflecting a decline of 0.1%. Developers significantly ramped up residential supply during Q2 of FY 2026-27, with launches rising by 18.7% to 30,262 units. During the quarter, the unsold stock edged up by 0.4% to 260,629 units, while residential real estate prices increased by 1.3% to an average weighted price of Rs.25,199 per sq ft, the highest among the eight major Indian metropolitan cities of MMR, Pune, the National Capital Region (NCR), Hyderabad, Ahmedabad, Kolkata, Chennai, and Bengaluru. At the end of FY 2022-23, the unsold inventory in MMR had reached a new high of 3,77,152 units. However, Pankaj Kapoor, managing director of Liases Foras maintained that new launches had continued to show consistent growth. "With the festive season approaching, we expect launch activity to strengthen further," he said. "This should support stable residential sales, with the possibility of a modest improvement in overall market activity. However, the ongoing West Asia crisis and the correction in equity markets could weigh on sentiment, particularly in the luxury and ultra-luxury segments, where purchasing decisions are more sensitive to wealth effects and market confidence." In NCR, sales declined by 2.4% during the quarter, marking the steepest decline among the eight cities. Launches increased by 6.7% to 14,188 units, while unsold inventory remained steady at 58,407 units. The average housing rates in NCR fell by 5.9% to an average weighted price of Rs.22,115 per sq ft, primarily due to the lower average pricing of new launches. Sales in Bengaluru slipped marginally, and unsold inventory rose by 1.3%. Developers in MMR's real estate sector are adopting a cautious approach. A mid-sized developer operating in the western suburbs commented, "We are taking each day as it comes. We have slowed down on acquiring new projects. Instead of focusing on expanding the portfolio, we want to ensure that we complete what we have on hand and maintain our integrity and brand value in the market to ensure our long-term survival." Rahool Maroo, a builder and managing director of the Tatvm Group, told Hindustan Times that the next few years would be a crucial test for real estate. "Construction costs are rising, but developers cannot keep increasing prices indefinitely without testing affordability and demand," he said. Given the evolving geopolitical scenario impacting real estate economic activity, Liases Foras predicts that the upcoming festive season will test whether sales can keep pace with new supply, particularly in Pune and Hyderabad, where inventory is accumulating rapidly....