Decline in Unsold Housing Stock Indicates Resurgence in Indian Real Estate Market

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The Indian real estate sector is experiencing a notable resurgence, as evidenced by a significant decline in unsold housing stock across Tier 1 cities in the first quarter of 2024. According to a recent analysis by PropEquity, a leading real estate data analytics firm, the unsold housing inventory in Tier 1 cities has decreased by 16% year-on-year (YoY), with the current inventory standing at 4,81,566 units as of March 2024.

Among the Tier 1 cities, Delhi-NCR witnessed the most substantial decrease in unsold stock, recording a remarkable 37% decline YoY, with the current inventory standing at 27,959 units, compared to 44,680 units in Q1 2023. Mumbai followed suit with a 31% YoY decrease in unsold housing inventory, registering 48,399 units compared to 70,432 units in Q1 2023. Similarly, other Tier 1 cities like Pune, Hyderabad, and Chennai also experienced significant reductions in unsold housing stock, with decreases of 25%, 20%, and 10% respectively, compared to the previous year.

This decline in unsold housing inventory is accompanied by a positive trend in housing sales, which witnessed an 8% YoY increase during the January-March 2024 period, despite a decrease in new supply. Thane, Pune, and Hyderabad emerged as the top-performing cities in terms of quarterly sales, with Thane and Pune leading the market with 26,702 and 26,632 units sold respectively in Q1 CY 2024.

Navi Mumbai stood out with the highest percentage-wise growth in sales at 55%, followed by Hyderabad (21%) and Mumbai (18%). This surge in housing sales, coupled with a decrease in new launches by 19% during the same period, indicates robust demand in the market.

Samir Jasuja, Founder and Managing Director at PropEquity, commented on the positive market indicators, stating, "The residential market in India saw significant growth in sales in Q1 2024, with an 8% YoY increase despite a decrease in new launches by 19% in the same period." 

Jasuja further noted that the decline in unsold stock by 16% in Tier 1 cities reflects a healthy balance between supply and demand, signaling a positive outlook for the market.

Overall, the latest data reflects a promising trajectory for the Indian real estate sector, with declining unsold inventory and increasing housing sales pointing towards a revival in market sentiment and investor confidence. As the sector continues to adapt to evolving market dynamics, stakeholders can expect sustained growth and stability in the coming quarters.

Image source- constructionnarchitecture.com