Unsold Inventory: 60% Ready-To-Move Homes Priced Below Rs 80 Lakh

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
Bangalore 73,340 12,000 16%
Chennai 30,840 8,800 29%
Pune 87,440 8,600 10%
Kolkata 49,470 5,400 11%
NCR 1,86,710 23,500 13%
MMR 2,19,490 22,300 10%
Hyderabad 25,960 4,400 17%
PAN India 6,73,210 85,000 13%

Source: ANAROCK Research (RTM= Ready-to-move-in)

Currently, the bulk of end-user, as well as investor demand, now skewed heavily towards affordable and mid-segment properties in this price bracket. In fact, ANAROCK’s consumer sentiment survey H2 2018 also revealed that nearly 67% aspiring homebuyers preferred to buy properties within this budget range.

This is not surprising, as most of these properties indeed offer a good value proposition with the least amount of risk. However, the caveat that a ready-to-move-in property must have the benefit of a completion certificate to benefit from 12% GST exemption must be borne in mind.

The previously significant price difference between ready-to-move-in and under-construction properties is narrowing down because of the massive unsold stock in most cities.

However, the additional GST charge on under-construction options is impossible to ignore. In other words, the fact that of such a massive supply of RTM options on the market makes most buyers’ preference a bit of a no-brainer

On taking a closer look at the data, it emerges that NCR and MMR are the cities with maximum unsold ready-to-move stock. Together, they account for nearly 54% of such stock in the top 7 cities. Hyderabad has the least amount of ready-to-move stock with just over 4,400 units.

In terms of budget segmentation too, MMR and NCR have the maximum available ready-to-move stock in the affordable and mid segments (below Rs. 80 lakhs) – together accounting for 55% of the stock in the main 7 cities.

Pune has an equal mix of ready-to-move properties priced below Rs 80 lakhs and properties priced above this budget range.

All other cities have fewer ready-to-move options in the luxury and ultra-luxury categories than NCR, which again tops the list on this front.

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