Residential property sales rebounded more than 90 per cent of the pre-pandemic 2019 levels as the market held its own in 2021. As a result, housing inventory overhang across top 7 cities plunged to 32 months by 2021-end whereas the inventory overhang in top 7 cities stood at 55 months by 2020-end, as per the real estate services company ANAROCK.
“Among the top 7 cities, NCR remained the frontrunner in reducing the overall inventory in the last one year from 89 months in 2020 to 49 months in 2021. It is close to reaching the pre-pandemic levels of 45 months in 2019-end,” ANAROCK Group chairman Anuj Puri said.
“In 2021, the top 7 cities recorded sales of approximately 2.36 lakh units,” he added.
According to Puri, positive homebuyer sentiment, low home loan rates and anticipation of imminent price hikes helped housing sales scale new highs. The overall inventory may reduce further in the coming quarters in case a third COVID-19 wave is not as severe as the Delta wave, ANAROCK noted.
Meanwhile, Bengaluru has the lowest inventory overhang of 21 months among all top cities on account of the growing IT/ITeS sector. “The city is undoubtedly one of the most resilient markets in the country, driven by the booming IT/ITeS sector. In 2020, the inventory overhang here stood at 29 months- the lowest then as well,” the firm said in its release.
The National Capital Region (NCR) market, notably saw the highest annual reduction by 39 months in its inventory overhang – from 89 months in 2020 to nearly 49 months at the end of 2021. Mumbai Metropolitan Region (MMR), on the other hand, sunk below 30 months for the first time since 2015 and attained an all-time low of 29 months in 2021.
Inventory overhang, measured in months, indicates the number of months it will take for the current unsold housing stock on the market to sell at the current absorption rate and an inventory overhang of 18-24 months is considered healthy at a given period.
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