Hyderabad’s unsold housing stock reduces in 2021
Hyderabad: Hyderabad’s unsold housing stock reduced to 30 months in 2021 from 52 months in 2020. Though the city added the second highest new supply in 2021 after Mumbai Metropolitan Region, the current inventory overhang indicates that the market witnessed decent sales during the year. Hyderabad saw 197 per cent increase in sales from 8,560 […]
Hyderabad: Hyderabad’s unsold housing stock reduced to 30 months in 2021 from 52 months in 2020. Though the city added the second highest new supply in 2021 after Mumbai Metropolitan Region, the current inventory overhang indicates that the market witnessed decent sales during the year.
Hyderabad saw 197 per cent increase in sales from 8,560 units in 2020 to 25,410 in 2021. The city added about 51,470 units in 2021, a year-on-year increase of 144 per cent over 2020 and a 71 per cent increase over pre-Covid 2019.
Hyderabad has lesser unsold stock than Delhi-NCR, Kolkata, Chennai, and Pune. Delhi-NCR has an inventory overhang of 49 months in 2021, Kolkata has 39 months, Chennai has 33 months while Pune’s inventory stood at 32 months.
Inventory 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. An inventory overhang of 18-24 months is considered relatively healthy at any given period.
According to Anuj Puri, chairman, Anarock Group, “Hyderabad has been one of the most vibrant real estate markets among all top cities over the past one year and witnessed robust residential activity – both in terms of new launches and housing sales.”
The Indian residential market witnessed sales rebounding to over 90 per cent of the pre-pandemic 2019 levels, because of which, the housing inventory overhang across the top seven cities including Hyderabad plunged to 32 months by 2021-end, closing in on the 30 months as of 2019-end. Anarock research shows that the inventory overhang in the top seven cities stood at 55 months by 2020-end.
Puri added, “Housing sales in the fourth quarter (October-December) broke all records of the last 28 quarters and breached the 90,000 units mark.”
Considering the current housing sales momentum and guarded new supply across cities, the overall inventory overhang may reduce further in the coming quarters, if third Covid-19 wave does not affect the momentum.
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