Going by a region’s prevailing unsold housing inventory as an indicator of its realty market’s health, North India’s Delhi-NCR – once notorious for speculation-driven oversupply and all-round market disarray – is in significantly better shape than the other regions. Latest ANAROCK data indicates that Delhi-NCR’s unsold inventory declined by a massive 57% in the last five years.

The top Southern markets Bengaluru, Hyderabad, and Chennai saw their collective unsold stock shrink by 11% in this period. MMR and Pune in the West saw their cumulative unsold stock reduce by 8%. In the East, Kolkata saw its unsold inventory decline by an impressive 41% in the period.

NCR’s unsold stock declined from approx. 2 lakh units at Q1 2018-end to approx. 86,420 units by Q1 2024-end. In the same period, the main southern cities saw their unsold stock decline from over approx. 1.96 lakh units in Q1 2018 to over 1.76 lakh units in Q1 2024.

Source: ANAROCK Research

South India’s relatively low decline of unsold inventory is attributable to a massive new launch rate in Hyderabad, most notably over the last two years. The city saw its housing stock almost quadruple in the last 5 years. Bengaluru saw unsold inventory decline by 50% in this period.

In the West, MMR and Pune saw unsold stock decline by 8% in the last five years – from approx. 3.13 lakh units in Q1 2018 to approx. 2.90 lakh units in Q1 2024.

Santhosh Kumar, Vice Chairman – ANAROCK Group, says, “What really worked for NCR market was developers’ determination to keep new supply addition under control. ANAROCK data indicates that NCR witnessed total new supply of approx. 1.81 lakh units between Q1 2018 to Q1 2024. In contrast, the southern and western markets saw significantly higher new supply additions of approx. 6.07 lakh units and 8.42 lakh units respectively.”

“NCR’s upbeat performance also reflects renewed buyer confidence in the region,” says Santhosh Kumar. “RERA, GST and the intervention of AIFs like the SWAMIH fund have played a major role in this sentiment revival. As a result, more leading and listed players have increased supply in the region.”

Of the total unsold inventory in NCR:

• Gurgaon currently has the maximum stock of approx. 33,326 units – a 37% decrease in the last five years.
• Greater Noida is next with approx. 18,668 units lying unsold as of Q1 2024-end. However, Greater Noida reduced its stock by a whopping 70% since Q1 2018.
• Ghaziabad saw its unsold stock decline to approx. 11,011 units in Q1 2024, from approx. 37,005 units in Q1 2018 – a massive 70% 5-year decline.
• Noida had approx. 7,451 unsold units by Q1 2024-end, against 25,669 units in same quarter of 2018 – thus declining by 71%.
• Delhi, Faridabad & Bhiwadi together had approx. 15,964 unsold units as on Q1 2024-end, from approx. 23,038 units at Q1 2018-end – a 31% decrease.

Also Read: MahaRERA says only trained and certified agents to operate in the real estate sector

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Residential apartment sales clocked 269,407 units in FY 22 across tier I cities, an increase of 41% from FY 21 when the sales were 191,093 units.

Sales improved maximum in Bangalore (67%) and minimum in Kolkata (5%) yearly.

Overall sales across tier 1 cities increased by 8% (YoY). 75,487 units in Q4 FY 22 Vs. 69,691 units in Q4 FY 21.

Sales witnessed maximum recovery in Chennai by 21%, followed by Hyderabad (20%), Ahmedabad and Pune (17%),

Bangalore and MMR (2%), and NCR (1%) and decreased by 4% in Kolkata on YoY basis.
Unsold units remained stable on a QoQ basis, and the current unsold across the top 8 cities stands at 901,967 units. It decreased maximum in Bangalore by -5% QoQ and -23% YoY.

Months’ inventory dropped by two months in Tier I cities and is now 36 months in Mar-21. Inventory overhang of Bangalore and Pune are lowest among the tier 1 cities at 21 and 25 months, respectively. Prices in tier I cities increased 1% on QoQ and 3% on a YoY basis.

Tier I cities had recorded a sales growth of 41% in with 269,407 units, compared to previous year. Sales across the Tier I cities improved with all cities showcasing an upward movement.

Sales witnessed maximum gain in Bangalore by 67%, followed by Chennai (50%), Pune (49%), Hyderabad (48%), Ahmedabad (39%), MMR (33%), NCR (30%) and Kolkata (5%).

Overall sales across tier I cities stayed similar in FY22 compared to FY20. Sales witnessed maximum recovery in Chennai and Pune by 25%, followed by Hyderabad (17%), Bangalore (9%). Sales in Kolkata decreased by 30% on NCR (28%), Ahmedabad (5%), and MMR (4%).

Tier I cities had recorded a sales growth of 7% in the Mar quarter (Q4 FY 21-22) with 75,487 units, compared to previous quarter. Sales across the Tier I cities improved with all cities showcasing an upward movement except for Bangalore. Sales witnessed maximum gain in Hyderabad by 18%, followed by Chennai and Kolkata (15%), MMR (12%), Pune (9%), Ahmedabad (3%), NCR (2%). Sales decreased in Bangalore by 4%

Overall sales across tier I cities increased by 8%. Sales witnessed maximum recovery in Chennai by 21%, followed by Hyderabad (20%), Ahmedabad and Pune (17%), Bangalore and MMR (2%), and NCR (1%) Sales in Kolkata decreased by 4% on YoY basis.

Consolidated tier 1 cities’ unsold stock remains stable in Q4 FY 21-22. The unsold stock increased in Hyderabad by 14%, Ahmedabad by 6% and MMR by 4% while it declined or remained stable in all other cities.

Unsold stock in Tier I cities decreased only by 1% in Mar-22 compared to the same period last year. Bangalore witnessed the maximum decline in unsold stock (23%), followed by Kolkata (15%), Pune (11%), NCR (5%), and Chennai (1%). Unsold stock increased in Hyderabad by 41%, Ahmedabad by 24% and in MMR by 1%.

Months’ inventory dropped by 2 months in Tier I cities and is now standing at 36 months in Mar-21. Inventory overhang of Bangalore and Pune are lowest among the tier 1 cities at 21 and 25 months, respectively. Chennai and NCR has the highest months inventory in the quarter with 52 months.

Overall months inventory decreased by 3 months on YoY basis. Maximum drop in months inventory happened in Pune by 7 months and is now having 25 months as overhang. Hyderabad witnessed an increase of 5 months in months inventory and reached a value of 29 months.

Tier I cities had recorded new launches of 84,422 units in the Mar quarter (Q4 FY 21-22) which is a 14% increase compared to last quarter when it was 74,237 units. New launches witnessed maximum gain in MMR by 59%, followed by Hyderabad (30%), Pune
(12%), and Bangalore (2%). New launches declined in Chennai by 36%, NCR by 30%, Kolkata by 19% and in Ahmedabad by 1%.

Overall New Launches across tier I cities increased by 46%. New launches witnessed maximum increase in Ahmedabad by 201%, followed by Hyderabad (132%), Kolkata (97%), MMR (83%), Pune (35%). • New launches declined in Chennai, Bangalore and
NCR by 74%, 21% and 13% respectively.

Also Read: NAREDCO Maharashtra targets 2030 as the Real Estate decade

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