Unsold inventory across nine prime property markets has touched its lowest level in 13 quarters. As per a recent report, inventory levels are down by 11 percent from a year ago and 5 percent sequentially.
The lower number of launches and better sales are expected to be the reason behind the low inventory levels in 13 quarters. The findings are a part ‘Realty Decoded Report’ for Q2 FY’19 by Prop Tiger.
The cities included in the report are Ahmedabad, Bengaluru, Chennai, Gurugram (including Bhiwadi, Dharuhera and Sohna), Hyderabad, Kolkata, Mumbai (including Navi Mumbai and Thane), Noida (including Greater Noida and Yamuna Expressway) and Pune.
The report mentions that all the top nine cities except Kolkata witnessed a decline in unsold inventory as compared to Q2 FY’18. Noida reported the highest decline of 20% in unsold inventory as compared to the same quarter last year, whereas unsold inventory in Kolkata witnessed no change.
The low levels of inventory are attributed to a steep reduction in new launches in Q2 FY’19 as compared to Q2 FY’18. Real estate launches decreased by 35% from 54,170 units in Q2 FY’18 to 35,386 units in Q2 FY’19, as per the report.
The decrease in the number of real estate launches is seen as a good sign by the experts. Ankur Dhawan Chief Investment Officer, PropTiger, reportedly declared that a significant reduction in launches clearly indicates that developers are focusing on the completion of existing projects rather than launching new ones.
Also, improved sales, which were higher by 24% over last year, is also responsible for the low levels of real estate inventory in a long time. Overall sales increased to 72,473 in Q2 FY’19 from 58,470 in Q2 FY’18, as per the report.
While Gurugram and Ahmedabad witnessed a decline of 43% and 15% respectively, it was Noida that has the highest jump in sales of 59% as compared to Q2 FY’18.