Real estate developers in some of India’s biggest cities had a big problem in 2018: the number of new homes that remained unsold kept piling up. However, that number has come down since then.
However, there's a significant disparity in the demand for such unsold homes.
While developers in and around New Delhi were able to sell more than a lakh such properties in the last five years, their peers in the southern cities like Bengaluru, Chennai, and Hyderabad were hardly able to move 20,000, according to data from Anarock, a real estate consulting firm based in Gurugram.
"What really worked for NCR market was developers’ determination to keep new supply addition under control," Santosh Kumar, Vice Chairman of real estate consulting firm Anarock.
Home buyers may prefer newer properties unless there's a significant difference in the prices. So, new launches may get booked faster than unsold homes.
The trend is the most visible in Hyderabad where a spate of new real estate projects increased the the inventory of new homes by four times in the last five years.
By contrast, the inventory of unsold homes halved in Bengaluru.
Hyderabad has been one of the hottest real estate markets in India for nearly a decade now.
The price rise in Hyderabad property market was been the best among all metro cities in India.
The techies in Hyderabad thrived during a boom in salaries and jobs during the pandemic while people in other cities grappled with job losses and an uncertain future.
It helped that the home prices in Hyderabad were still more affordable than those in Bengaluru, which also had a sizeable techie population.
A lot of developers piled on the opportunity to tap the sustained demand and the headroom for a sharp increase prices. That led to an increased supply of new homes while the unsold inventory moved at a snail's pace.
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However, there's a significant disparity in the demand for such unsold homes.
While developers in and around New Delhi were able to sell more than a lakh such properties in the last five years, their peers in the southern cities like Bengaluru, Chennai, and Hyderabad were hardly able to move 20,000, according to data from Anarock, a real estate consulting firm based in Gurugram.
"What really worked for NCR market was developers’ determination to keep new supply addition under control," Santosh Kumar, Vice Chairman of real estate consulting firm Anarock.
Home buyers may prefer newer properties unless there's a significant difference in the prices. So, new launches may get booked faster than unsold homes.
The trend is the most visible in Hyderabad where a spate of new real estate projects increased the the inventory of new homes by four times in the last five years.
By contrast, the inventory of unsold homes halved in Bengaluru.
Hyderabad has been one of the hottest real estate markets in India for nearly a decade now.
The price rise in Hyderabad property market was been the best among all metro cities in India.
The techies in Hyderabad thrived during a boom in salaries and jobs during the pandemic while people in other cities grappled with job losses and an uncertain future.
It helped that the home prices in Hyderabad were still more affordable than those in Bengaluru, which also had a sizeable techie population.
A lot of developers piled on the opportunity to tap the sustained demand and the headroom for a sharp increase prices. That led to an increased supply of new homes while the unsold inventory moved at a snail's pace.
ALSO READ:
Home inventory hits near seven-year low as the sale of luxury homes surge
Legal Digest | Can a person be labeled as a "terrorist" because he accessed terrorist websites?
First Published: May 23, 2024 1:04 PM IST
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