MUMBAI: On the back of significant momentum in the residential property market, housing inventory overhang across the top seven cities plunged to just 20 months by Q1 2023-end, from 42 months by Q1 2018-end. Top 7 cities’ cumulative unsold stock declined by 12% in last 5 years – from 7,13,400 units by Q1 2018-end to approx. 6,26,750 units by Q1 2023-end.
Inventory measured in months indicates the number of months it will take for the current unsold housing stock on the market to sell at the current absorption rate. An inventory overhang of 18-24 months is normally considered healthy at any given period.
Says Anuj Puri, Chairman – ANAROCK Group, “Among the top 7 cities, NCR remained the frontrunner in reducing overall inventory overhang in the last five years – from 66 months in Q1 2018 to approx. 23 months in Q1 2023. This is the best the region has seen in the last five years. In fact, inventory overhang in NCR had peaked at 88 months in Q4 2020.”
Among the top 7 cities, NCR saw the maximum 5-year inventory reduction – by 43 months (from 66 months by Q1 2018-end to approx. 23 months by Q1 2023-end). This region was the third-best housing sales performer in Q1 2023.
In MMR, the inventory overhang has shrunk by 34 months in this period, attaining an all-time low of 21 months in Q1 2023. MMR recorded the highest sales among the top cities, with approx. 34,690 units sold in the quarter – an increase of 182% against same period in 2018.
