Bengaluru: Unsold housing stock throughout the highest seven cities plunged to 32 months by 2021-end, in comparison with a 55-month overhang in 2020-end, in line with information by Anarock Property Consultants. The autumn in stock overhang got here on the backdrop of the residential property market witnessing gross sales rebound in 2021, to greater than 90% of the pre-pandemic 2019 ranges.
Stock measured in months signifies the variety of months it can take for the present unsold housing inventory in the marketplace to promote on the present absorption price. A listing overhang of 18-24 months is taken into account comparatively wholesome at any given interval.
“Among the many high 7 cities, Nationwide Capital Area (NCR) remained the frontrunner in decreasing total stock overhang within the final one 12 months – from 89 months in 2020 to 49 months in 2021. It’s near reaching the pre-pandemic ranges of 45 months in 2019-end,” mentioned Anuj Puri, chairman, Anarock Group.
“In 2021, the highest 7 cities recorded gross sales of round 2.36 lakh models. Housing gross sales within the 4th quarter (October-December) broke all data of the final 28 quarters and breached the 90,000 models mark. Elements like optimistic homebuyer sentiment, all-time low residence mortgage charges, and anticipation of imminent worth hikes helped housing gross sales contact a brand new excessive, bringing down total residential stock overhang throughout the highest cities,” mentioned Puri.
Factoring within the present housing gross sales momentum and guarded new provide throughout cities, the general stock overhang could scale back additional within the coming quarters – if a high-impact third covid-19 wave doesn’t break the tempo.
To date, the affect is minimal, with fewer hospitalizations and a lowered obligatory quarantine interval of simply 7 days in opposition to the earlier 14 days.
Among the many high seven cities, in addition to NCR that noticed the utmost annual discount (by 39 months) in its stock overhang, Mumbai Metropolitan Area (MMR) additionally noticed unsold stock sink 30 months for the primary time since 2015, attaining an all-time low of 29 months in 2021.
MMR additionally recorded the very best gross sales amongst all high cities with approx, adopted by NCR. In MMR, 76,400 models offered final 12 months, a rise of 72% in opposition to 2020. The area now has the second-lowest stock overhang after Bengaluru.
The southern metropolis of Bengaluru now has the bottom stock overhang, of 21 months, among the many high cities. In 2020, the stock overhang there stood at 29 months. Hyderabad’s stock overhang lowered to 30 months in 2021 from 52 months again in 2020. Although Hyderabad added the second highest new provide in 2021 after MMR, the present stock overhang signifies that the market witnessed first rate gross sales within the 12 months.
Supply: Live Mint