Sharp decline in unsold home inventory bodes well for residential realty

The high levels of unsold residential inventory that has been a bane for the sector, has seen a sharp decline in recent months, signalling recovery for the housing sector facing slowdown for long time.

According to recent industry statistics, the pan India unsold inventory has decreased 11% y-o-y to 1230 million square feet in March 2019 from March 2018.The inventory absorption period has come down by 7 months.This has been possible due to pick up in sales. The residential real estate market across India has registered sales of 37.3 million sq ft in March 2019, taking the total sales in FY 19 to 44.3 million sq ft up by 7% y-o-y. NCR which had been struggling with high inventory and slow sales, has experienced 28% y-o-y sales in March 2019 at 4.3 million sq ft, with Greater Noida contributing 1.7 million sq ft and Gurugram clocking 1.3 million sq ft.

Says Pradeep Aggarwal, Founder & Chairman, Signature Global, ” The rise in housing sales and subsequent decline in unsold inventory has been made possible due to boost to home buyers confidence because of RERA implementation and sharp cut in GST rates on affordable housing and under- construction property. Now with Modi government coming back to power, more pro-housing policy measures will be taken which will in turn give a new fillip to real estate. And with interest rates continuously going down, it will be good time for end users to buy home”.

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