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.