Housing inventory overhang lowest in 5 years due to robust sales

The housing inventory overhang in India's top seven cities was 20 months at the end of the January-March quarter, according to data from real estate consultancy Anarock released on Monday. In the quarter ending December 2020, it was the longest at 55 months. The inventory overhang is the time it would take to sell the area's current housing listings. A lower overhang indicates higher demand in a specific area. According to the data, Bengaluru had the shortest inventory overhang of 13 months. In Q1CY23, the top seven cities recorded all-time high sales of more than 114,000 units, says Anarock Group Chairman Anuj Puri. The quarter broke all records and breached the 100,000 units mark for the first time. Strong homeownership sentiment, relatively lower home loan rates, strong momentum in luxury housing and the anticipation of further price hikes were major factors in boosting housing sales, bringing down the overall residential inventory overhang across the top cities. The housing inventory overhang in India's top seven cities was 20 months at the end of the January-March quarter, according to data from real estate consultancy Anarock released. In the quarter ending December 2020, it was the longest at 55 months. Hyderabad's inventory overhang was reduced to 21 months in Q1CY23, from 23 months in Q1CY18. Pune's inventory overhang was 20 months as of the end of Q1CY23. It was 40 months during the same period in 2018, and it increased to 43 months in Q1CY21. Chennai's inventory overhang also decreased significantly, from 36 months in Q1CY18 to 20 months in Q1CY23. The residential inventory overhang in Kolkata fell from 46 months in Q1CY18 to 20 months at the end of Q1 CY23. Also Read Indiabulls Housing Finance ropes in Oaktree Capital 5 States Front-runners in State Energy Efficiency Index 2021-22