Walk through any metro today and you will see billboards screaming about new launches—fresh towers, glossy brochures, promises of lifestyle living. Supply is pouring in, but the ground reality feels different. Brokers whisper that absorption is flat, buyers are cautious, and only certain unit types are moving. Compact 2BHKs in connected suburbs are booking steadily, while larger homes in fringe areas sit unsold. Ready-to-move inventory is preferred, because buyers want certainty and immediacy. Under-construction projects, despite aggressive launches, are waiting longer for traction. Developers are confident, but buyers are selective, and the gap between launches and absorption is widening.
Vikas Jain, CEO – Labdhi Lifestyle Limited, observes“Mid-segment and premium housing are currently witnessing stronger absorption across key urban markets. In the Mumbai Metropolitan Region (MMR), homes priced above ₹1 crore now contribute nearly 45–50% of overall residential sales. This trend is being driven by stable end-user demand, rising household incomes, and a clear preference for well-located, infrastructure-backed projects.”
The Paradox of Supply vs Demand
The housing market right now feels like two stories running side by side. On one hand, developers are announcing launches with confidence, betting on momentum and marketing muscle. On the other, absorption is flat, with buyers holding back.
Jain explains this paradox further “MMR has witnessed a 15–20% year-on-year increase in new launches, while absorption levels have remained largely range-bound. This gap reflects a more discerning buyer mindset, with demand increasingly concentrated in proven locations rather than spread uniformly across the region. Projects located in established corridors with strong metro, road connectivity or redevelopment potential continue to perform well, whereas peripheral and less-connected locations are facing longer sales cycles and rising inventory levels.”
Brokers say affordable and mid-segment homes are struggling, while premium homesespecially compact formats in prime locations are seeing better traction. Families are cautious about financing costs and job stability, which makes them choosy. They’re not rushing into every launch; they’re picking homes that feel safe, practical, and valuable.
What Brokers See on the Ground
Spend time with brokers and the picture sharpens. Compact 2BHKs in suburbs with strong connectivity are moving. Ready-to-move homes are the most sought-after, because families want certainty they want to walk into a space today, not wait for promises tomorrow. Larger homes in fringe areas are harder to sell, even with discounts. Brokers describe the market as split: one track where practical, ready homes are being booked, and another where ambitious launches pile up without buyers.
Jain adds a developer’s lens “To convert launches into bookings, developers must align supply more closely with real demand. This includes offering right-sized configurations, maintaining realistic pricing, and creating differentiated value propositions. Flexible payment plans, transparent construction timelines, and strong developer credibility have become critical decision factors. Today’s buyers are prioritising delivery certainty and product quality over speculative gains, making trust and execution key drivers of sales momentum.”
In Bengaluru and Pune, IT hires and students are driving rental demand, keeping smaller units alive. In Mumbai, migrants and mid-income families are cautious, focusing on affordability and connectivity. The result is uneven absorption steady in some pockets, sluggish in others.
What This Means for the Market
The surge in launches shows developer confidence, but the flat absorption reflects buyer caution. For developers, the challenge is sharper than ever—aligning product with sentiment. Execution excellence, transparency, and realistic pricing are no longer optional; they’re survival strategies. For buyers, the flood of options means more choice, but also more noise. The homes that are actually selling are those that deliver certainty and practicality.
Housing markets often look like numbers on a chart launches, absorption, percentages. But behind those numbers are people making choices. Right now, those choices are cautious, selective, and focused on homes that feel safe and usable. Launches may be up, but absorption tells the real story: only certain homes are truly selling.
