The unsold inventory of homes at the seven metropolitan cities of India has touched a new peak of 10,36,860, which is a 6.02% rise since pre-pandemic. The Mumbai Metropolitan Region (MMR) tops the chart among the 7 cities with 3,77,152 homes that found no takers for, as at the end of fiscal 2022-23
Unbought homes rise despite realtors cheering 'record sales'
At the end of the third quarter (December 2019) of financial year 2019-20, the unsold housing stock was 9,77,993. On January 30, 2020 the first cases of Covid-19 were reported in India and lockdown came into force from late March 2020, thereby impacting launches and sales of apartments.
The spike in the unbought homes is despite the “record sales” that the real estate players have been cheering about.
“The top 8 cities of India saw strong growth in new supply, with above Rs5 trillion worth of supply launched in FY23. While sales also see growth, it stands at a value of Rs2.9 trillion. Unsold supply has gained over Rs1.3 trillion worth of stock in the last year,” said Pankaj Kapoor, Founder and Managing Director, Liases Foras, a real estate research and rating firm.
Unbought home stocks in MMR rise by 28%
A look at Liases Foras’ data shows that, in MMR, the stock of homes not sold has risen by 28.55% from 2,93,376 during pre-pandemic to 3,77,152 in March 2023. Maximum surge has happened in the Hyderabad market with 105.24% increase to 94,316 units. Ahmedabad’s real estate too was higher than the MMR with the inventory going up by 45.04%.
One of the prime factors for the accumulation in the units was the launch of new projects. “Year-on-Year, new launches witnessed maximum increase in Chennai (405%), followed by Kolkata (102%), NCR (73%), Bengaluru (52%), Pune (28%), MMR (11%), Ahmedabad (10%) and Hyderabad (6%).
Of the 8 cities, there was a decline in the unsold homes in the five metropolitan areas of NCR (-20.91%), Bengaluru (-30.45%), Pune (15.04%), Kolkata (-18.86%) and Chennai (-2.79%).
Currently, in terms of months inventory, Chennai has the highest at 61, followed by MMR (52), NCR (44), Kolkata (39), Ahmedabad (38), Hyderabad (31), Pune (24) and Bengaluru (22). The term “months inventory” is a measure on how many months it will take to clear the existing pile on unbought units.
abc
