India's Residential Inventory Overhang Declines in Q2: Proptiger Report
The Mumbai Metropolitan Region (MMR) and Pune, two of Maharashtra's key real estate markets, accounted for 54% of the total unsold inventory, according to a Proptiger report.
Proptiger ReportResidential Inventory OverhangIndian Real Estate MarketMumbai Metropolitan RegionPune Real EstateReal Estate PuneOct 01, 2024
The Proptiger report highlighted that the inventory overhang declined to 35 months in Q2 2023 from 42 months in Q1 2023. This reduction in inventory overhang is a positive sign for the residential real estate market, indicating an improvement in sales velocity. Proptiger is a leading real estate consultancy firm in India, providing comprehensive services to homebuyers, developers, and investors. The company offers a wide range of services, including property advisory, investment consulting, and real estate research.
The decline in inventory overhang can be attributed to various factors, including the government's initiatives to boost affordable housing, improved consumer sentiment, and increased demand for housing due to low interest rates. The Indian government has been actively promoting affordable housing through schemes such as the Pradhan Mantri Awas Yojana (PMAY), which aims to provide affordable housing to millions of Indians. The MMR and Pune markets have been the most active in terms of sales and new launches. These markets have seen a significant increase in demand for affordable and mid-range housing, driven by the growth of the IT and services sectors. The Proptiger report also highlighted that the average property prices in these markets have remained stable, making them attractive to homebuyers.
The Indian residential real estate market is expected to continue its growth momentum in the coming quarters, driven by increasing demand, improved consumer sentiment, and government initiatives. The decline in inventory overhang is a positive sign for the market, indicating an improvement in sales velocity and a reduction in the time it takes to sell unsold inventory.
Frequently Asked Questions
What is inventory overhang in real estate?
Inventory overhang refers to the time it would take to sell the existing unsold inventory at the current sales velocity.
What percentage of unsold inventory is accounted for by MMR and Pune?
According to the Proptiger report, MMR and Pune account for 54% of the total unsold inventory.
What is the current inventory overhang in the Indian residential real estate market?
The inventory overhang declined to 35 months in Q2 2023 from 42 months in Q1 2023, according to the Proptiger report.
What are the factors contributing to the decline in inventory overhang?
The decline in inventory overhang can be attributed to government initiatives to boost affordable housing, improved consumer sentiment, and increased demand for housing due to low interest rates.
What is the outlook for the Indian residential real estate market?
The Indian residential real estate market is expected to continue its growth momentum in the coming quarters, driven by increasing demand, improved consumer sentiment, and government initiatives.
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