Anuj Puri, Chairman – ANAROCK Property Consultants
- Of the total current 6.73 lakh unsold units across top 7 cities, approx. 85,000 are ready-to-move-in
- NCR & MMR together account for 54% total unsold RTM homes
- Hyderabad has least unsold RTM stock priced below Rs. 80 Lakh with approx. 3,040 units
Indians looking to buy homes in 2019 have a very compelling rationale to opt for ready-to-move (RTM) homes, which – apart from being exempt of the 12% GST ambit – are available plentifully.
As per ANAROCK data, out of the total 6.73 lakh units of unsold housing inventory, nearly 85,000 units are currently ready-to-move-in across the top 7 cities. Interestingly, out of these total unsold ready-to-move options, nearly 60% of units are in the affordable and mid segments priced below Rs. 80 lakh.
RTM quotient of Unsold Stock
|Cities||Total Unsold Units Approx.||RTM Units Approx.||RTM % of Total Unsold Units|
Source: ANAROCK Research (RTM= Ready-to-move-in)
- A significant drop from 47 months of inventory overhang in Q4 2017
- NCR still constitutes 52 months’ inventory overhang; Bengaluru & Hyderabad at an all-time low of 17 months each
- Sales exceed the number of units launched the second year in a row
- property sizes across the top 7 cities shrink by 8% compared to 2017 & 19% since 2016
Mumbai, 15 January 2019: Despite all headwinds including the liquidity crisis in 2018, housing sales rose by 18% and new launches by 33% across the top 7 cities compared to 2017. Residential inventory overhang reduced to a year-low from 47 months in Q4 2017 to 33 months in Q4 2018 across the top 7 cities.
The DeMo effect in late 2016 had pushed up unsold inventory to 47 months in Q4 2017 from 40 months in Q4 2016. An inventory overhang of 18-24 months signifies a fairly healthy market.
“Having absorbed a lot of the impact of various structural changes, the Indian real estate sector seemed poised to grow from the previous year,” says Anuj Puri,