Realty sector's inventory surges to over Rs 1 trn, outpacing sales growth

This analysis is based on a common sample of 19 listed real estate companies that are part of the BSE500, BSE Midcap, and BSE Smallcap indices

The past 18 months have seen a resurgence in the real estate industry, with developers regaining the ground lost to the Covid-19 pandemic. But it is once again adding inventory at a pace faster than sales.
 

The industry’s inventory rose by 28 per cent year-on-year (Y-o-Y) in H1FY24, com–pared to a 25.5 per cent year-on-year increase in net sales during the same period. This is in contrast to H1FY23, when net sales rose by 24.2 per cent Y-o-Y, while the inventory level increased by just 8.2 per cent Y-o-Y.
 

As a result, the combined inventory of top listed companies reached