Unsold Real Estate Inventory Sees Significant Decline in Sales Velocity
A recent analysis by JLL reveals that the time taken to sell unsold real estate inventory has decreased by nearly one-third in seven major Indian cities.
Real EstateUnsold InventorySales VelocityJllIndian Real Estate SectorReal Estate MumbaiJun 06, 2024
The analysis, which covered Delhi NCR, Mumbai, Pune, Bengaluru, Chennai, Hyderabad, and Kolkata, revealed that the average time taken to sell unsold inventory has reduced significantly. This decline is attributed to various factors, including improved market sentiment, increased demand, and a more proactive approach by developers to clear their inventory.
The reduction in sales velocity is a welcome sign for the Indian real estate sector, which has been experiencing a slowdown in recent years. The sector has been plagued by issues such as high unsold inventory, delayed project deliveries, and a general lack of trust among homebuyers. However, with the implementation of policies such as RERA (Real Estate Regulatory Authority) and GST (Goods and Services Tax), the sector has started to show signs of revival.
JLL's analysis also highlighted the cities that have performed well in terms of sales velocity. Mumbai, for instance, has seen a significant decline in sales velocity, followed closely by Pune and Bengaluru. These cities have been at the forefront of the Indian real estate sector, with a high demand for housing and commercial spaces.
The reduction in sales velocity is also attributed to the changing business model of developers. Many developers have shifted their focus from luxury projects to affordable and mid-segment projects, which are in higher demand. This shift in focus has helped developers to clear their inventory faster and reduce the time taken to sell unsold properties.
JLL is a leading international real estate consultancy with a presence in over 80 countries. The company provides a range of services, including transaction services, consulting, and advisory services, to developers, investors, and occupiers.
JLL is a Fortune 500 company with a rich history of over 250 years. The company has a strong presence in India, with offices in major cities such as Mumbai, Delhi, Bengaluru, and Chennai. JLL's Indian operations provide a range of services, including consultancy, research, and advisory services, to the Indian real estate sector.
Frequently Asked Questions
What is the main reason for the decline in sales velocity of unsold real estate inventory?
The decline in sales velocity is attributed to various factors, including improved market sentiment, increased demand, and a more proactive approach by developers to clear their inventory.
Which cities have performed well in terms of sales velocity?
Mumbai, Pune, and Bengaluru have seen a significant decline in sales velocity, according to JLL's analysis.
What is RERA and how has it impacted the Indian real estate sector?
RERA stands for Real Estate Regulatory Authority, a policy implemented to regulate the Indian real estate sector. It has helped to increase transparency and accountability among developers, which has boosted market sentiment and demand.
How has the Indian real estate sector been performing in recent years?
The Indian real estate sector has been experiencing a slowdown in recent years, plagued by issues such as high unsold inventory, delayed project deliveries, and a general lack of trust among homebuyers.
What is JLL and what services does it provide?
JLL is a leading international real estate consultancy that provides a range of services, including transaction services, consulting, and advisory services, to developers, investors, and occupiers.
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