The inventory overhang in India's residential real estate market has significantly decreased to 22 months in the June quarter, down from 34 months in the same period last year, according to a report by PropTiger.com. Notably, Gurugram in the NCR region experienced a remarkable reduction in inventory overhang, falling from 72 months in the second quarter of 2023 to 31 months in the second quarter of 2024. Ahmedabad also demonstrated strong performance, with its inventory overhang declining from 33 months to 18 months during the same timeframe, reflecting robust demand dynamics in these markets. Despite a moderation in supply and absorption rates, the overall unsold inventory across India’s residential real estate market displayed resilience, achieving a 2%YoY decline, resulting in over 926,000 unsold units as of June 30.
Group CFO of REA India and Business Head of PropTiger.com noted, Mr. Vikas Wadhawan, “As we approach the festive season, we anticipate this positive momentum will continue to gain strength, further boosting market activity and buyer engagement across the country.” Ahmedabad led the reduction in unsold inventory, cutting over 12,500 units. In comparison, the NCR region decreased by more than 9,400 units. These reductions indicate healthy demand and a positive market outlook in these key cities, showcasing the effective absorption of available stock. The Mumbai Metropolitan Region (MMR) and Pune, 2 critical real estate markets in Maharashtra, accounted for 54% of the total unsold inventory across the top 8 cities at the end of the latest June quarter. The MMR and Pune markets experienced comparatively high unsold stock due to an increase in new launches by developers responding to strong consumer demand. In MMR, unsold housing stock rose by 1% to 339,362 units in April-June 2024, up from 335,476 units in the same period the previous year.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.