India: 78,000 Unsold Homes Ready in Top 7 Cities

Homebuyers seeking de-risked ready-to-move-in properties can leverage the COVID-19 period to their advantage.

ANAROCK research reveals that out of the total unsold stock of over 6.44 lakh units in the top 7 cities (as on March 2020 end) nearly 12% or approx. 78,000 homes are ready-to-move-in. The total stock of unsold RTM homes is worth about INR 65,950 crore.

Anuj Puri, Chairman - ANAROCK Property Consultants says, "Of the total unsold ready stock, MMR and Pune together have approx. 35,200 units, which are collectively worth INR 37,550 crore. This accounts for 57% of the total value of ready unsold homes across all top 7 cities.”

Although construction activity is completely halted all across, first-time homebuyers are at an unprecedented advantage to negotiate good deals on ready-to-move-in options and simultaneously benefit from all-time-low interest rates of 7.15% to 7.8%.

The COVID-19 lockdown has accelerated technology-led homebuying in India, making it possible to inspect properties online as well as negotiate and finalize deals. Virtual site visits are now a firm reality and a large chunk of the property selection and purchase process can now be done digitally.

"The lockdown period has kick-started rapid technology-led evolution on the Indian real estate market," says Anuj Puri. "Some states are now also mulling the introduction of e-registration of property documents, thereby completing the entire value chain. This is necessary since physical site visits are unlikely to pick up quickly even after the lockdown ends, as both buyers and sellers will remain wary." 

City-Wise Break-up of Ready Unsold Supply

Altogether, the top 7 cities had a total unsold stock of nearly 6.44 lakh units by March 2020-end, of which nearly 12% (or approx. 78,000 units) are ready-to-move-in.

Of the top cities:

• Highly COVID-19-impacted MMR has the maximum ready stock of nearly 19,200 unsold homes worth nearly INR 26,150 crore. However, this ready stock is just 9% of the total unsold inventory (of 2.13 lakh units) in the region.
• Pune has the second-highest ready unsold stock of nearly 16,000 units worth over INR 11,400 crore. This is close to 17% of the total unsold stock of 93,300 units available in the city.
• NCR comes third with nearly 15,600 unsold ready homes worth INR 10,720 crore. This accounts for just 9% of the total unsold inventory of 1.73 lakh units in the region.
• Bangalore currently has ready unsold stock of approx. 10,100 units worth INR 7,150 crore. Overall, this is nearly 16% of the total 62,800 units of unsold stock in the city.
• Chennai has nearly 9,400 ready unsold units in the city worth nearly INR 5,800 crore. Interestingly, the ready stock comprises 28% share of the total 33,500 unsold units in the city.
• Kolkata has ready unsold stock of nearly 5,300 units worth INR 2,860 crore. This is 12% of the total unsold stock of approx. 43,600 units here.
• Hyderabad has the least unsold ready stock of nearly 2,400 units worth INR 1,870 crore. It is 10% of the total unsold stock of 24,900 units in the city.