The unsold stock of residential units in top three real estate markets — Mumbai, Delhi & NCR and Bengaluru — is expected to have come off by just 7% in FY16, reports Shubhra Tandon in Mumbai. Industry estimates place the inventory could be around 6.5 lakh units, just a tad lower than the 7 lakh plus unsold units in FY15.
The main reason for this is the limited supply — developers have launched fewer projects. In 2015, the number of launched units fell by a sharp 62% year-on-year in Bengaluru, 37% in Mumbai and 14% in Delhi & NCR, according to Cushman and Wakefield. The trend is unlikely to have changed in financial year 2015-2016, several property experts opined. However, developers have begun to accept demand is weak, says Ashutosh Limaye, head of Research at JLL India adding they are becoming disciplined with regard to delivery timelines. “So, if 1,000 units are being planned, bookings are opened for just 300 units and the construction commences.
If the response is good and builder is confident of delivering, construction for another lot of units begins,” Limaye explains. Builders are also launching more 1,2 and 3 bedroom apartments to fit more customers’ pockets, unwilling to risk inventories piling up.