Inventories of real estate under construction fell the most in the past seven years: report
The study indicates that Pune became the best market in India in terms of volume, followed by Hyderabad while Mumbai saw the largest drop in inventory.
“The credit crunch that began in FY18-19 has accelerated the pace of consolidation and has benefited Class A developers more. As unsold inventories in projects under construction decline, we expect developers to step up launches again starting in fiscal 23, ”the report said.
Pune became the largest market with the lowest inventory levels (age of unsold inventory) while MMR’s inventory months (especially Mumbai) fell by almost half.
In Pune, the age of unsold items is close to 15 months, which means that all the homes launched before have been sold. In Mumbai, inventory months have gone from 40 to just over 20 over the past 5-6 years.
NCR continues to lag on both parameters.
“The start of RERA, after 2018, initiated the process of consolidating the sector, leading buyers to be more aware and confident of the projects. markets, ”said Sumeet Abrol, Partner-Lead Advisory, Grant Thornton Bharat.
Developers have also focused on selling properties under construction rather than new housing starts.
“We focused on selling our projects under construction; this segment has evolved very quickly for us. Our goal has remained on the prompt delivery of projects to our clients, ”said Pankaj Bansal, Director of M3M.
Inventory levels, especially in markets such as Mumbai, Pune and Thane, are at their ten-year low.
Bangalore is still over two years of inventory, but primary sales have steadily dropped.