Mumbai: Across the major Indian cities, in 2022, the overall unsold inventory of the real estate was reduced, but the total value of the unsold stock increased to ₹10.7 trillion. This was primarily due to a surge in new project launches in the luxury segment in the range of ₹1 – 5 crore.
The latest report prepared by Liases Foras, a real estate research and rating agency, shows that since the calendar year 2020, there has been a fall in the unsold inventory from 57 months to 38 months by the end of 2022. In real estate, months of inventory is a quantifiable means to ascertain how the demand – supply momentum is. It means the total number of months it would require to sell the unsold housing stock.
"Overall, India saw strong growth in new supply"
Founder and Managing Director Liases Foras, Pankaj Kapoor, said, “Overall, India saw strong growth in new supply, with above ₹5 trillion worth of supply launched in 2022. While sales also see growth, it stands at a value of ₹3.2 trillion. Unsold supply has gained over ₹2 trillion worth of stock in the last year. Despite this, the months' inventory (on units) has fallen, giving new supply one of the driving forces guiding sales.”
Overall, the unsold value of residential stock across the major cities of India (Mumbai Metropolitan Region, Pune, National Capital Region, Kolkata, Ahmedabad, Hyderabad, Chennai and Bangalore) had a net increase of 22%, primarily due to the developers coming up with new launches in the ticket size segment ranging ₹1 to 5 crore.
As per the Liases Foras report made public on Monday, in the ₹1-2 crore category, there was a 37% jump and 54% increase in the ₹2 to 5 crore ticket size category. Marginal fall was witnessed in the ticket sizes of ₹50 lakh and below.
“Prices in Tier I Cities remained with minor change on Quarter on Quarter of 2% increase while it increased 7% on a Year on Year basis. Also, Tier I cities recorded a slight increase in sales of 1% in the December quarter, that is in Q3 financial year 2022-23 with 76,011 units. Tier I cities had minor changes in sales from last quarter except for Chennai, which had the highest drop in sales,” added Kapoor.
The sales witnessed maximum recovery in Hyderabad by 41%, followed by Kolkata at 29%, MMR 21%, and Pune 9% on Year on Year basis. The unsold stock increased in Hyderabad by 13%, Ahmedabad by 8%, MMR by 7%, and Pune and Kolkata by 4%; the other cities had a marginal improvement of below 1% on Quarter on Quarter basis.
