It will take over six years for Delhi-NCR’s builders to sell their 1.01 lakh unsold housing stocks while real estate developers in Bengaluru and Kolkata need only 31 months, according to property consultant PropTiger. Australia’s REA group and News Corp own three real estate portals, Housing.com, PropTiger and Makaan.com, in India to provide advisory and brokerage services.
According to the PropTiger’s latest data, builders across eight major cities in India are sitting on an unsold stock of 7,35,852 units as of March 31, 2022. The number of unsold inventories has increased from 7,05,344 units in March last year. Inventory overhang, which is defined as the estimated time period builders likely to take to sell off their unsold stock based on the current sales velocity, has declined to 42 months as against 47 months a year ago, primarily because of higher demand for housing.
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Delhi NCR has the highest inventory overhang while Bengaluru and Kolkata have the lowest. According to the data, the unsold housing stocks stood at 62,602 in Ahmedabad with an inventory overhang of 42 months.
Bengaluru and Kolkata have unsold stocks at 66,151 units and 23,850 units as of March 31, 2022. Builders in both cities will take 31 months to liquidate these units. Unsold housing stocks in Chennai are at 34,059 units with an inventory overhang of 34 months, while Hyderabad has 73,651 unsold units having an inventory overhang of 42 months. In Mumbai and Pune, the unsold housing stocks stood at 2,55,814 units (48 months overhang) and 1,18,321 units (32 months overhang), respectively. Unsold inventories in Delhi-NCR market stood at 1,01,404 units, with maximum inventory overhang of 73 months.
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Last week, PropTiger reported that housing sales increased 7 per cent year-on-year to 70,623 units during January-March across eight major cities. A total of 79,532 units were launched in Q1 of 2022 calendar year as compared to 53,037 units in the corresponding period of the previous year. According to real estate consultant Anarock, housing sales across seven cities increased 71 per cent in January-March to 99,550 units from 58,290 units in the year-ago period across Delhi-NCR, Mumbai Metropolitan Region (MMR), Bengaluru, Pune, Hyderabad, Kolkata and Chennai.
Unsold inventories across seven major cities fell 2 per cent to 6.28 lakh units by the end of the first quarter of 2022 calendar year from 6.42 lakh units in Q1 2021-end, as per Anarock data.
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