Inventory overhang in Indian real estate at record low due to robust sale
inventory overhang (the estimated time required to sell off unsold stock based on sales velocity) has dropped to 22 months in the June quarter, down from 34 months in the corresponding quarter last year.
According to PropTiger.com report, NCR's Gurugram witnessed a substantial decline in inventory overhang from 72 months in Q2 2023 to 31 months in Q2 2024. Ahmedabad also showed strong performance, reducing its inventory overhang from 33 months to 18 months during the same period, reflecting the healthy demand dynamics in these markets.
Regarding unsold inventory, the report said that despite a moderation in supply and absorption rates, India’s residential real estate market displayed resilience, achieving a 2% year-on-year decline, bringing the total to over 9.26 lakh units as of June 30.
“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,” said Vikas Wadhawan, Group CFO -REA India & Business Head, PropTiger.com.
Ahmedabad led the way in reduction in unsold inventory with the highest reduction, cutting over 12,500 units, followed by the NCR region, which saw a decrease of over 9,400 units. These reductions reflect healthy demand and a positive market outlook in these key cities, indicating that the market is effectively absorbing the available stock.
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