Unsold housing stocks dip by 11% in top 9 cities: PropEquity Study

financialexpress.com:

Unsold housing stocks in Tier 1 cities in India dropped to 5,08,464 units in Q3 2023 from 5,26,497 units in Q3 2022, representing an 11% decrease.

PropEquity research data shows that in Hyderabad, there is a significant 6 percent increase in unsold stock in Q3 2023 among the top seven cities in the country. In the Delhi-NCR region, unsold stock dropped by 7 percent in the third quarter of 2023 as compared to Q2 2023, while residential property sales continued the upward momentum gained after the pandemic.

On the other hand, new launches increased by 2% in tier one cities to 97,871 units in July to September 2023 from 96,408 units in the previous year. While this quarter saw a decline in new launches of 11% on Q-o-Q basis, due to lower demand due to rise in property prices as well as mortgage rates. Indian developers are strategically prioritizing the reduction of older unsold inventory, resulting in a decline in unsold stocks, while also launching fewer new projects.

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“Housing prices have been climbing in major Indian cities in the post-COVID years. While this upward trend in capital values is attracting investors to India’s key real estate markets, there is reduction in unsold housing stock. However, due to appreciation in both prices and mortgage rates, housing demand is currently facing challenges. Going forward, if interest rates on home loans remain stable or even soften in the coming months, we anticipate an increase in housing demand,” said Samir Jasuja, Founder & CEO of PropEquity.

“The real estate market across the country has witnessed a price appreciation; the consumer sentiment has continued to stay robust as the pandemic reshaped the