Bengaluru has the lowest unsold inventory overhang at about 15 months while NCR has the highest at 44 months as on the third quarter of 2019, according to a report by Anarock.
Overall unsold inventory across the top 7 cities -- Delhi-NCR, Mumbai Metropolitan Region (MMR), Chennai, Kolkata, Bengaluru, Hyderabad and Pune -- stood at 6.56 lakh units at the end of the September quarter.
Unsold residential inventory overhang in top 7 cities has reduced to 30 months as on the third quarter of 2019 against 37 months in the corresponding period of 2018.
Unsold inventory overhang in months indicates the number of months it shall take for the current unsold housing stock to get cleared in the current market scenario. At any given point, an inventory overhang of 18-24 months is considered quite healthy.
Bengaluru - with the lowest unsold inventory overhang of 15 months as on Q3 2019 – saw it reduce from 19 months a year ago and 25 months in Q3 2017.
Hyderabad's unsold inventory will take 16 months to clear in the present scenario as against 20 months in Q3 2018 and 22 months as on Q3 2017, the report said.
In Pune, the inventory overhang has declined from 34 months in Q3 2018 to 27 months as on Q3 2019; it stood at 44 months back in the corresponding period of 2017.
Chennai’s unsold inventory overhang has reduced from 35 months in the third quarter of 2018 to 31 months in 2019. However, it was lowest best at 26 months in Q3 2017 – thus being the only city where the stock has increased on a two-yearly basis.
MMR's inventory overhang stood at 34 months as on Q3 2019 end from 46 months a year ago and 51 months back in Q3 2017. In Kolkata, unsold inventory will take at least 38 months to clear from hereon; a year ago in Q3 2018, it stood at 42 months while it was 43 months in Q3 2017.
NCR – one of the worst-affected residential markets in the country – currently has unsold stock which will take at least 44 months to clear. Back in Q3 2018, it was 58 months while in the corresponding period of 2017, it was 59 months, the report said.
As per ANAROCK data, the top 7 cities collectively have total unsold stock of nearly 6.56 lakh units as on Q3 2019 end, reducing by 5% on yearly basis and nearly 12% in two years. The overall unsold stock in top cities was approx. 7.44 lakh units as on Q3 2017 which reduced to 6.87 lakh units as on Q3 2018.
Bengaluru’s unsold stock as on Q3 2019 stood at approx. 63,540 units, declining the maximum among top cities by 17% in a year and over 38% in two years.
Hyderabad has the least unsold inventory among top cities at approx. 23,890 units as on Q3 2019. It was over 27,000 units a year ago and a little more than 27,500 units in 2017.
NCR has also seen a decent decline in its unsold stock over the years – it reduced from 2.1 lakh units in Q3 2017 to 1.90 lakh units in Q3 2018 and then finally to 1.78 lakh units in 2019. Nevertheless, the city still has the second-highest unsold inventory.
MMR, having the highest current unsold stock of nearly 2.21 lakh units, saw a mere 1% yearly decline in its unsold pile while on a two-yearly basis, the stock reduced only marginally by 2%.
The annual change of unsold inventory overhang in the third quarter of 2019 was fairly better than the previous year. This suggests that builders now are following a laser-focused approach towards clearing their previous unsold stock, says Anuj Puri, Chairman – ANAROCK Property Consultants.
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