According to a PropTiger.com analysis, the inventory overhang in India's residential real estate market has dramatically reduced, from 34 months in the same period last year to 22 months in the June quarter.
Notably, the inventory overhang in the NCR region of Gurugram decreased significantly, from 72 months in the second quarter of 2023 to 31 months in the same quarter of 2024. Strong demand dynamics in these markets were reflected in Ahmedabad's performance, which saw its inventory overhang decrease from 33 months to 18 months during the same period.
As of June 30, there were approximately 926,000 unsold units in India's residential real estate market, showing resilience despite a slowdown in supply and absorption rates. The entire unsold inventory declined by 2% year over year.
Ahmedabad eliminated more than 12,500 units, taking the lead in the decrease of unsold inventory. The NCR region had a decline of more than 9,400 units, in contrast. These declines demonstrate the efficient consumption of available stock and point to a robust demand and promising market outlook in these important locations. The Mumbai Metropolitan Region (MMR) and Pune, 2 major real estate markets in Maharashtra, accounting for 54% of the total unsold inventory across the top 8 cities at the conclusion of the latest June quarter. A rise in new launches by developers in response to robust consumer demand resulted in relatively high unsold stock in the MMR and Pune markets. From 335,476 units in April–June 2024 to 339,362 units in June 2024, MMR's unsold housing stock increased by 1%.
Expressing to this exclusive report, Group CFO of REA India and Business Head of PropTiger.com, Vikas Wadhawan says, “As we approach the festive season, we anticipate this positive momentum will continue to gain strength, further boosting market activity and buyer engagement across the country.”
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