Robust Demand Signals Recovery in Residential Market

The Indian residential real estate market has achieved a remarkable milestone as inventory overhang—the estimated time required to sell off unsold properties—has decreased to 22 months in the June quarter of 2024, down from 34 months in the same period last year. This significant reduction highlights a resurgence in demand across the sector, suggesting a positive trajectory for the market.

Regional Insights: Disparities in Inventory Overhang

According to a report by Proptiger.com, the inventory overhang varies considerably across different regions. The National Capital Region (NCR) leads with the highest overhang at 31 months, while Kolkata enjoys the lowest at just 16 months. These regional differences underline varying market dynamics and buyer behavior, which are crucial for investors and stakeholders.

Gurugram and Ahmedabad Showcase Strong Performance

The quarterly report, titled ‘Real Insight Residential – April-June 2024,’ reveals notable improvements in specific cities. Gurugram, part of the NCR, saw a dramatic decrease in inventory overhang, plummeting from 72 months in Q2 2023 to 31 months in Q2 2024. Similarly, Ahmedabad has demonstrated robust performance, reducing its overhang from 33 months to 18 months, indicative of a healthy demand landscape in these urban markets.

A Positive Outlook for Investors

The latest findings reflect a revitalized Indian residential real estate market, driven by increased demand and improved sales dynamics. With a clearer path towards inventory stabilization, investors and homebuyers alike can look forward to a promising future in the sector.