In the top seven cities, the number of unsold homes has increased by 24%. However, the time it takes to sell these homes has decreased by 31%. This means while there are more unsold properties, they are being sold faster than before. The real estate market is showing mixed signals with an increase in available homes but a quicker turnover rate. This could indicate growing demand or more effective selling strategies. The housing market is experiencing significant changes in both supply and sales speed by reflecting the dynamic nature of the real estate market, suggesting that buyers are more active, and sellers are adapting quickly.
According to JLL India, unsold housing stocks in seven key cities have increased by 24% since 2019 owing to increased supply; but, because of high sales velocity, real estate companies are being able to sell these units in 31% less time. The actively selling unsold housing inventory has reached approximately 4,68,000 units by March 2024, according to a report released last week by real estate consultant JLL India. This represents a 24% increase since December 2019 across seven major cities: Delhi-NCR, Mumbai, Pune, Bengaluru, Chennai, Hyderabad, and Kolkata.
Based on JLL's analysis, there has been a noteworthy 31% reduction in the duration required to sell the unsold housing inventory in the residential sector of India's top seven cities, namely Delhi NCR, Mumbai, Pune, Bengaluru, Chennai, Hyderabad, and Kolkata. The duration to dispose of inventories decreased to just 22 months in Q1 (the months of January and) 2024 from 32 months by the end of 2019, mostly due to an exponential increase in home demand. The average sales rate over the previous eight quarters was the basis for this evaluation.
This is a big change as even though there are more homes that haven't been sold, they're actually getting sold faster than before. This is quite interesting because it shows that the real estate market is slightly mixed up. On one hand, there are more homes available for sale, which might sound like good news for buyers. On the other hand, the time it takes to sell these homes has decreased a lot, which is good news for sellers.
This confusing situation could suggest that more people are trying to purchase a property at this time. It can also indicate that sellers are moving through the house more quickly. Thus, what we see here is a combination of both: a rise in the number of properties listed and sales.
People may be feeling more confident about purchasing houses, which might be one factor contributing to this shift. Perhaps because they feel more confident about their work or because the economy is performing well. People are more inclined to make major decisions, like purchasing a home, when they are confident. Another reason could be that sellers are getting smarter about how they sell their homes. They might be using better marketing strategies or setting more reasonable prices. This could be encouraging buyers to act fast and make a purchase.
Overall, what's happening in the real estate market right now is quite interesting. More homes are available, but they're also getting sold quicker. This could be a sign of a healthier market, where both buyers and sellers are feeling more positive and active.
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