According to a research report by Edelweiss, new launches in the month of October continued to fall and were down 24% MoM and 47% YoY at the pan-India level in top 7 cities. On the other hand, housing sales increased 10% MoM and 12% YoY in October.
Similar to September, there were no new launches in Kolkata in October as well, says the report. Bengaluru witnessed the highest fall of 76% MoM followed by Hyderabad and Pune showing decline of 47-49% MoM each. Launches in Chennai too declined 26% MoM. On the other hand, MMR witnessed a sharp increase of 87% MoM in launches followed by NCR which was up 9% MoM.
By share of launches in October, MMR and NCR notched up gains of 2700bps and 400bps MoM respectively, while Bengaluru witnessed its share erode by 1900bps MoM. Share of Pune and Hyderabad too declined in the range of 500-800bps MoM each and that of Chennai remained broadly stable. Kolkata’s share was nearly zero in both months.
“With demand outstripping supply over the past year, unsold inventory dipped 11% YoY in India in October 2021. Kolkata witnessed the maximum rate of correction, followed by Bengaluru, MMR and Pune. MMR accounts for highest unsold inventory.”
According to the report, with trailing 12-months absorption up 11% YoY, inventory levels pan-India reduced to 26 months (from 37 months in October 2020. Pune and Hyderabad remained the best markets with 14–18 months of inventory. The NCR remained the worst real estate market with 57 months of inventory.