ANAROCK, leading real estate services company in India, in its latest report, reveals that unsold residential inventory overhang in the top 7 cities has reduced to 30 months as on Q3 2019, against 37 months in the corresponding period of 2018. Unsold inventory overhang in months indicates the number of months it will take for the current unsold housing units to get cleared in the today’s market scenario. At any given point, an inventory overhang of 18-24 months is considered quite healthy.

Here are the few highlights from the report for residential real estate sector:

  • NCR has the highest inventory overhang among the top 7 cities at 44 months while the IT capital of India Bengaluru has the lowest unsold inventory overhang at about 15 months.
  • Kolkata has the second-highest inventory overhang at 38 months. A year back in Q3 2018, it stood at 42 months while it was 43 months in Q3 2017.
  • The top-7 cities collectively had total unsold stock of nearly 6.56 lakh units at the end of the third quarter of 2019 against 6.87 lakh units during the corresponding period in 2018, a fall of nearly 5.56 percent.
  • Unsold inventory overhang in Mumbai Metropolitan Region (MMR) and Pune at 34 months and 27 months, respectively.
  • In Pune, the inventory overhang has declined from 34 months in Q3 2018 to 27 months as on Q3 2019. It was at 44 months back in the corresponding period of 2017.

Key Takeaway

The decline of inventory overhang both in cumulative and city wise figures means that real estate developers and builders are now much more focussed on clearing their previous housing units rather than madly/rushing at launching new projects one after another irrespective of market situation.

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By Abhay Gupta

With background in e-commerce and IT, Abhay manages operations and backend processes at SAKSHAM Wealth. He is a data cruncher and his expertise with MS Excel helps the team in research.

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