Inventory of under-construction properties slump in last seven years
22 Sep 2021
2 Min Read
CW Team
Axis Capital Limited has told the media that the inventory levels of under-construction properties in some of the major cities of India have dropped in the last seven years as fresh housing starts have lately trailed sales.
According to a report, Pune has emerged as India's best market in terms of volume, followed by Hyderabad, while Mumbai has been seen as the largest inventory drop.
In FY18-19, the beginning of the credit crisis expedited the consolidation and benefitted grade-A developers more. As the unsold inventory levels at under-construction properties drop, the developers are expected to step up launches again from FY23, said the report.
Pune city has emerged as the largest market with the lowest inventory, while material management resources (MMRs), especially Mumbai's inventory levels, declined by about half.
The duration of unsold inventory in Pune is nearly 15 months, according to which all housing units launched before have been sold. The inventory months of Mumbai dropped from 40 to 20 in the past five-six years, while the National Capital Region (NCR) still lagged on both the parameters.
Partner-Lead Advisory of Grant Thornton Bharat, Sumeet Abrol, said that from the onset of the Real Estate Regulatory Authority (RERA) in late 2018, it initiated the consolidation process in the industry, leading to more awareness and confidence of the project among the buyers. In the last few years, muted demand led to a decline in launching new projects in the market.
Developers are also eyeing selling under-construction properties instead of fresh housing.
Director of M3M India Private Limited, Pankaj Bansal, said that the company is focusing on under-construction properties, which is a very fast-moving segment for the company. It focuses on the timely delivery of the projects to the customers.
The inventory levels in major cities like Pune, Mumbai and Thane are at a decadal level. Bangalore is still above two years of inventory, but its primary sales have declined consistently.
Also read: China鈥檚 Evergrande: On a brink of collapse
Axis Capital Limited has told the media that the inventory levels of under-construction properties in some of the major cities of India have dropped in the last seven years as fresh housing starts have lately trailed sales.
According to a report, Pune has emerged as India's best market in terms of volume, followed by Hyderabad, while Mumbai has been seen as the largest inventory drop.
In FY18-19, the beginning of the credit crisis expedited the consolidation and benefitted grade-A developers more. As the unsold inventory levels at under-construction properties drop, the developers are expected to step up launches again from FY23, said the report.
Pune city has emerged as the largest market with the lowest inventory, while material management resources (MMRs), especially Mumbai's inventory levels, declined by about half.
The duration of unsold inventory in Pune is nearly 15 months, according to which all housing units launched before have been sold. The inventory months of Mumbai dropped from 40 to 20 in the past five-six years, while the National Capital Region (NCR) still lagged on both the parameters.
Partner-Lead Advisory of Grant Thornton Bharat, Sumeet Abrol, said that from the onset of the Real Estate Regulatory Authority (RERA) in late 2018, it initiated the consolidation process in the industry, leading to more awareness and confidence of the project among the buyers. In the last few years, muted demand led to a decline in launching new projects in the market.
Developers are also eyeing selling under-construction properties instead of fresh housing.
Director of M3M India Private Limited, Pankaj Bansal, said that the company is focusing on under-construction properties, which is a very fast-moving segment for the company. It focuses on the timely delivery of the projects to the customers.
The inventory levels in major cities like Pune, Mumbai and Thane are at a decadal level. Bangalore is still above two years of inventory, but its primary sales have declined consistently.
Image SourceAlso read: China鈥檚 Evergrande: On a brink of collapse
Next Story
Kolkata鈥檚 luxury housing market sees price growth amid mixed trends
A new study by Nklusive reveals that Kolkata鈥檚 luxury residential market (Rs 5鈥�10 crore) recorded a 33 per cent year-on-year rise in supply and a 52 per cent increase in sales in calendar year 2024 (CY24). South Kolkata led with 78 per cent of the segment鈥檚 supply. The average price rose by 6 per cent鈥攆rom Rs 17,519 to Rs 18,600 per sq ft鈥攚hile unsold inventory grew by 15 per cent. Monthly absorption improved from 2 to 3 units.In contrast, the ultra-luxury segment (Rs 10 crore and above) experienced a 17 per cent decline in supply and a 30 per cent fall in sales. Central Kolkata acco..
Next Story
New Expressway to Cut Pune-Bengaluru Travel Time by Half
The upcoming Pune-Bengaluru Expressway is expected to significantly improve connectivity and economic opportunities across Maharashtra and Karnataka. This 700-kilometre greenfield, access-controlled highway will cut the travel time between Pune and Bengaluru from 15 hours to just 7 hours, facilitating easier movement for both commuters and businesses. Starting from Bommanal in Karnataka鈥檚 Athani Taluk, the expressway will traverse important districts such as Belagavi, Bagalkot, and Jamakhandi. It will then enter Maharashtra at Kanjle, connect with the proposed Pune Ring Road, and pass throug..
Next Story
Nagpur鈥檚 Koradi Naka to Get Y-Shaped Flyover for Safer, Smoother Traffic
To alleviate traffic congestion and enhance safety at Koradi Naka in Nagpur, a Y-shaped flyover is currently being constructed on National Highway 47. Demolition work has already commenced, with the main construction scheduled to start on June 20, 2025.The project, costing Rs 430.37 billion, involves building a 1,090-meter-long flyover that will connect Farsa, the Mahadula Railway Overbridge (ROB), and Bokhara Road, and will also feature an underpass. The existing structure will be repurposed into a service road to facilitate local traffic.Koradi Naka has been identified as a significant "blac..
