India's Real Estate Landscape: How Long Does it Take to Sell Unsold Housing Inventory?
Bengaluru and Delhi NCR lead the pack in terms of clearing unsold housing inventory, but what are the factors driving this trend?
Real EstateHousing InventoryUnsold HomesIndian Real EstateReraReal Estate NewsJun 06, 2024
In Bengaluru, it takes an average of 21 months to sell unsold housing inventory, while in Delhi NCR, it takes around 22 months. These numbers are significantly lower than other major cities like Mumbai, where it takes a whopping 43 months to clear the same inventory. Pune and Hyderabad follow closely, with an average of 34 and 35 months respectively.
So, what drives this disparity in the time it takes to sell unsold housing inventory? Factors such as demand and supply, pricing, and infrastructure development play a crucial role. Cities like Bengaluru and Delhi NCR have seen a surge in demand for housing, driven by their growing IT industries and strong economies. This increased demand, coupled with a relatively lower supply of homes, has led to a faster clearance of unsold inventory.
On the other hand, cities like Mumbai and Pune face challenges like high property prices and limited affordability, which slow down the sales process. Additionally, the pace of infrastructure development in these cities is slower, making them less attractive to homebuyers.
Another key factor is the policy environment. The introduction of reforms like RERA has brought in transparency and accountability in the real estate sector, boosting buyer confidence. This, in turn, has led to a faster sale of unsold inventory in cities where the policy has been effectively implemented.
The Indian real estate sector is a significant contributor to the country's GDP. However, it has faced challenges in recent years, including a slowdown in sales and a huge backlog of unsold housing inventory. The sector is regulated by the Real Estate (Regulation and Development) Act, 2016, popularly known as RERA.
Godrej Properties is one of India's leading real estate developers, with a presence in over 10 cities across the country. The company is known for its innovative and sustainable developments, and has received numerous awards and accolades for its contributions to the sector.
Frequently Asked Questions
What is the average time it takes to sell unsold housing inventory in Bengaluru?
21 months
Which city takes the longest to clear unsold housing inventory?
Mumbai, with an average of 43 months
What drives the demand for housing in cities like Bengaluru and Delhi NCR?
Growing IT industries and strong economies
How has RERA impacted the real estate sector?
It has brought in transparency and accountability, boosting buyer confidence
What is the Indian real estate sector's contribution to the country's GDP?
Significant
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