Real estate developers are sitting on around 7.85 lakh unsold housing units across eight major cities and it will take them 32 months to clear these stocks at current sales velocity, according to PropTiger.
However, in Delhi-NCR residential market — which has been adversely impacted due to defaults of many big builders like Amrapali, Jaypee Infratech and Unitech — it will take 62 months to sell over 1 lakh unsold housing units.
Housing brokerage firm PropTiger.com data showed that unsold housing inventory has increased to 7,85,260 units as on September 30, 2022 from 7,63,650 unsold units at the end of previous quarter.
The consultant tracks primary housing market of eight cities — Ahmedabad, Delhi NCR (Delhi, Gurugram, Noida, Greater Noida, Ghaziabad, and Faridabad), Chennai, Bengaluru, Hyderabad, Kolkata, Mumbai Metroplitan Region (Boisar, Dombivli, Mumbai, Mazagaon, Panvel, Thane West), and Pune. Housing sales rose 49 per cent to 83,220 units in July-September 2022 across these eight cities as compared to 55,910 units sold in the corresponding period of the last year.
With revival in housing demand, PropTiger report highlighted that there has been a significant decline in the inventory overhang — the estimated period builders in a particular market are likely to take to sell off their unsold stock at the existing sales velocity — to 32 months in July-September this year from 44 months in Q3 of 2021.
The consultant noted that revival in sales after the second wave of the COVID pandemic has helped in improvement in inventory overhang. Kolkata has the lowest inventory overhang of 24 months, while Delhi-NCR has the highest 62 months. Nearly 21 per cent of the unsold inventory across these eight cities falls in ready-to-move-in category.
As per the data, Ahmedabad has 65,160 unsold housing units at the end of September quarter with inventory overhang of 30 months. Unsold housing stocks in Bengaluru are 77,260 units and builders will take 28 months to clear the inventories. Chennai has 32,180 unsold housing units with 27 months of inventory overhang, while Delhi-NCR has 1,00,770 unsold stocks, which are estimated to get exhausted in whopping 62 months.
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Unsold homes in Hyderabad are 99,090 units with inventory overhang of 41 months. Kolkata has 22,530 unsold housing units with lowest 24 months of inventory overhang. In Maharashtra’s two biggest property markets, Mumbai has 2,72,960 unsold housing units with inventory overhang of 33 months. Pune builders will need 22 months to clear 1,15,310 unsold housing units at current speed.
PropTiger.com is owned by REA India, part of REA Group Ltd of Australia. REA India is one of the leading full stack real estate technology platform that owns three platforms — Housing.com, Makaan.com and PropTiger.com. While PropTiger is into housing brokerage, Housing.com and Makaan.com are into listing of properties for buying and renting.
REA India’s revenue grew 92 per cent to nearly ₹300 crore last fiscal year ended June on better traffic and revival in housing demand, its CEO Dhruv Agarwala had recently said in an interview with PTI. Housing.com contributed nearly 80 per cent to the revenue.