Unsold housing stock dips 3% in Sept quarter to 508,000 units: PropEquity

Unsold housing stock fell 3 per cent in nine major cities during the July-September period to 5.08 lakh units, compared to the previous quarter, as sales were higher than supply, according to PropEquity.

According to a report by data analytic firm PropEquity, unsold housing inventories have fallen to 5,08,464 units at the end of the September quarter, as against 5,26,497 units as on June 30, this year.

During the July-September quarter, PropEquity data showed that housing sales were 1,15,904 units, while new supply was at 97,871 units across nine major cities. As a result, the number of unsold homes fell.

"Housing prices have been climbing in major Indian cities in post-COVID years. While this upward trend in capital values is attracting investors to India's key real estate markets, there is reduction in unsold housing stock," said Samir Jasuja, Founder & CEO of PropEquity.

Housing demand is currently facing challenges due to appreciation in both prices and mortgage rates, he noted.

"Going forward, if interest rates on home loans remain stable or even soften in the coming months, we anticipate an increase in housing demand," Jasuja said.

Among nine cities, unsold housing stocks rose 6 per cent in Hyderabad to 1,05,240 units in September quarter, from 99,589 units at June-end.

Bengaluru saw a marginal increase of 1 per cent in unsold homes to 54,404 units from 54,084 units during the period under review.

Navi Mumbai too witnessed a 1 per cent rise in unsold housing stocks to 34,983 units, from 34,780 units.

However, the number of unsold homes fell 6 per cent in Thane to 1,04,959 units from 1,12,100 units.

Pune witnessed a 10 per cent fall in unsold homes to 71,220 units, from 79,405 units, while Mumbai saw a 4 per cent drop to 61,142 units from 63,637 units.

In Delhi-NCR, the unsold housing inventories decreased 7 per cent to 37,356 units from 40,211 units.

Unsold homes in Chennai fell 7 per cent to 20,048 units, from 21,663 units.

In Kolkata, the number of unsold housing inventories declined 9 per cent to 19,112 units at the end of July-September period, as compared to 21,028 units in June-end of this year.

The data includes apartments, independent floors and villas/row houses.

On the housing market data, realty firm Ambience Group chief business officer Ankush Kaul said consumer sentiment continued to stay robust as the pandemic reshaped the importance of owning a home rather than renting one.

"Despite increasing interest rates and marginal property prices, there is still parity between the prices and affordability," Kaul added.

"Also, with the ensuing festive period, we can expect sales to be north-bound," he said.