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Wednesday , 14 November 2018
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Unsold units at its lowest in last 13 quarters due to reduced launches and improved sales: PropTiger’s report

Oct 22, 2018– PropTiger.com, part of Elara Technologies Pte Ltd which also owns Housing.com and Makaan.com, today released the findings of its ‘Realty Decoded Report’ for Q2 FY’19. As per the report the unsold inventory reached its lowest level in thirteen quarters. It was down by 5% as compared to Q1 FY’19 and down by 11% as compared to Q1 FY’18. All the top 9 cities except Kolkata witnessed a decline in unsold inventory as compared to Q2 FY’18. Noida reported the highest decline of 20% in unsold inventory as compared to the same quarter last year whereas unsold inventory in Kolkata witnessed no change.

City Unsold Inventory as on quarter end
Q2 FY’18 Q2 FY’19 YoY Change
Ahmedabad 41,401 36,588 -12%
Bengaluru 87,545 75,116 -14%
Chennai 40,204 33,852 -16%
Gurugram^ 51,310 44,066 -14%
Hyderabad 38,558 38,119 -1%
Kolkata 43,649 43,803 0%
Mumbai** 328,317 301,761 -8%
Noida* 87,197 69,953 -20%
Pune 155,951 137,166 -12%
Grand Total 874,132 780,424 -11%

 

City Launches
Q2 FY’18 Q2 FY’19 YoY Change
Ahmedabad 1,213 878 -28%
Bengaluru 3,534 4,598 30%
Chennai 996 2,380 139%
Gurugram^ 3,428 1,839 -46%
Hyderabad 1,275 3,296 159%
Kolkata 2,229 2,927 31%
Mumbai** 27,965 11,603 -59%
Noida* 2,399 1,617 -33%
Pune 11,131 6,248 -44%
Grand Total 54,170 35,386 -35%

With the reduction in unsold inventory, inventory overhang has decreased to 34 months as compared to 38 months in Q2 FY’18. Ahmedabad has the highest inventory overhang of 47 months followed by Mumbai at 43 months. However, Hyderabad witnessed the lowest inventory overhang of 22 months followed by Chennai and Bengaluru at 23 and 24 months respectively.

This was majorly due to a steep reduction in new launches in Q2 FY’19 as compared to Q2 FY’18 coupled with improved sales, which were higher by 24% over last year. Launches decreased by 35% from 54,170 units in Q2 FY’18 to 35,386 units in Q2 FY‘19. Although, Hyderabad, Chennai, Bengaluru and Kolkata reported improvement in new launches, other cities reported a sharp decline as compared to Q2 FY’18. Launches increased by 159% and 139% in Hyderabad and Chennai respectively whereas Mumbai witnessed a decline of 59% followed by 46% in Gurugram as compared to Q2 FY’18.

Commenting on the trend Ankur Dhawan Chief Investment Officer, PropTiger said,“Significant reduction in launches clearly indicates that developers are focusing on the completion of existing projects rather than launching new ones. Though prices are still stagnant, reduction in inventory will reduce stress amongst developers and will give them headroom to raise prices in the coming quarters.”

Although, overall sales increased to 72,473 in Q2 FY’19 from 58,470 in Q2 FY’18, Gurugram and Ahmedabad witnessed a decline of 43% and 15% respectively. Noida reported the highest jump in sales of 59% as compared to Q2 FY’18 followed by Chennai and Pune at 54% and 50% respectively.

City Sales
Q2 FY’18 Q2 FY’19 YoY Change
Ahmedabad 2,411 2,047 -15%
Bengaluru 7,365 9,367 27%
Chennai 3,104 4,781 54%
Gurugram^ 5,848 3,332 -43%
Hyderabad 3,746 5,577 49%
Kolkata 3,681 3,915 6%
Mumbai** 18,902 22,969 22%
Noida* 4,196 6,652 59%
Pune 9,217 13,833 50%
Grand Total 58,470 72,473 24%

 The study covered nine key Indian cities of Mumbai, Pune, Noida, Gurugram, Bengaluru, Chennai, Hyderabad, Kolkata and Ahmedabad.

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