India's Residential Real Estate Market Hits Historic Low in Inventory Overhang
Mumbai, 1st October 2024: The Indian residential real estate market has hit a historic milestone, with inventory overhang (the estimated time it takes to sell existing stock) plummeting to an all-time low.
Real EstateResidential Real EstateInventory OverhangAffordable HousingProptigercomReal Estate NewsOct 01, 2024
The report highlights that the inventory overhang in the top eight cities in India has declined significantly over the past few years. The average inventory overhang in these cities is now around 24 months, which is a significant drop from the peak of 48 months in 2016. This decline is a clear indication of the improving demand and sales in the residential real estate market. The main reasons behind this decline are the government's efforts to boost the sector, the increase in demand for affordable housing, and the rise of online real estate platforms like Proptiger.com. The government's policies, such as the Goods and Services Tax (GST) and the Real Estate (Regulation and Development) Act, 2016 (RERA), have helped to increase transparency and accountability in the sector, which has boosted buyer confidence.
The report also highlights that the affordable housing segment has been a major driver of the demand in the residential real estate market. The government's focus on affordable housing has led to an increase in the supply of affordable housing units, which has helped to meet the growing demand in this segment. Overall, the decline in inventory overhang is a positive sign for the residential real estate market in India. It indicates that the market is on the path to recovery and that the demand for housing is increasing. As the government continues to support the sector through policies and reforms, the market is expected to continue its upward trend.
Frequently Asked Questions
What is inventory overhang in the real estate market?
Inventory overhang refers to the estimated time it takes to sell existing stock in the real estate market.
Why has the inventory overhang in India's residential real estate market declined?
The decline in inventory overhang is due to the government's efforts to boost the sector, the increase in demand for affordable housing, and the rise of online real estate platforms like Proptiger.com.
What is the current average inventory overhang in the top eight cities in India?
The average inventory overhang in the top eight cities in India is around 24 months.
What is the main driver of demand in the residential real estate market?
The affordable housing segment has been a major driver of demand in the residential real estate market.
What does the decline in inventory overhang indicate for the residential real estate market in India?
The decline in inventory overhang indicates that the market is on the path to recovery and that the demand for housing is increasing.
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