Proptiger.com Report: India’s Residential Real Estate Hits Historic Low in Inventory, Indicating Strong Demand
Mumbai, 1st October 2024: The Indian residential real estate market has hit a historic milestone, with inventory overhang (the estimated time required to sell off unsold stock based on sales velocity) dropping to 22 months in the June quarter, down from 34 months in the corresponding quarter last year. This decline underscores robust demand across the sector. Notably, the inventory overhang varies significantly across regions, with Delhi-NCR recording the highest at 31 months and Kolkata the lowest at 16 months.
In its quarterly report titled ‘Real Insight Residential – April-June 2024’, the Gurugram-headquartered firm highlighted significant improvements in key regions, with NCR’s Gurugram witnessing a substantial decline in inventory overhang from 72 months in Q2 2023 to 31 months in Q2 2024. Ahmedabad also showed strong performance, reducing its inventory overhang from 33 months to 18 months during the same period, reflecting the healthy demand dynamics in these markets.
Regarding unsold inventory, the report noted that despite a moderation in supply and absorption rates, India’s residential real estate market displayed resilience, achieving a 2% year-on-year decline, bringing the total to over 9.26 lakh units as of June 30. This reduction underscores the market’s capacity to adapt to evolving conditions, maintaining overall stability and indicating sustained buyer interest across various regions.
Mr. Vikas Wadhawan, Group CFO -REA India & Business Head, PropTiger.com, said, “The significant reduction in inventory overhang to 22 months from 34 months year-on-year reflects strong and sustained demand in India’s residential real estate market. Cities like Gurugram and Ahmedabad have shown remarkable progress, with NCR – Gurugram overhang dropping from 72 months in Q2 2023 to 31 months in Q2 2024, and Ahmedabad’s from 33 months to 18 months over the same period. This trend, combined with a 2% annual decline in unsold inventory to around 9.26 lakh units, underscores the market’s resilience and effective adjustment to evolving conditions. As we approach the festive season, we anticipate this positive momentum will continue to gain strength, further boosting market activity and buyer engagement across the country.”
Inventory Overhang:
Inventory overhang across key Indian cities has shown notable improvement compared to the same period last year. Ahmedabad and Bangalore saw significant reductions, with Ahmedabad’s inventory overhang decreasing from 33 months to 18 months and Bangalore’s from 36 months to 18 months. Delhi-NCR experienced a substantial drop from 72 months to 31 months, while Kolkata achieved a remarkable reduction from 34 months to just 16 months.
On a pan-India level, the overall inventory overhang decreased to 22 months from 34 months, reflecting a healthier balance between supply and demand in the residential real estate market.
Unsold Inventory:
Ahmedabad led the way in reduction in unsold inventory with the highest reduction, cutting over 12,500 units, followed by the NCR region, which saw a decrease of over 9,400 units. These reductions reflect healthy demand and a positive market outlook in these key cities, indicating that the market is effectively absorbing the available stock.
The Mumbai Metropolitan Region (MMR) and Pune — the two most important real estate markets in Maharashtra — accounted for 54 per cent of the total unsold inventory across top 8 cities at the end of the latest June quarter. The MMR and Pune markets have comparatively high unsold stock because of an increase in the number of new launches by developers as a response to strong consumer demand. In MMR, the unsold housing stock rose 1 per cent to 3,39,362 units in April-June 2024 from 3,35,476 units in the corresponding period of the previous year.
Nishka Choraria: The Marketing Maverick Behind Crest Ventures’ Real Estate Success and Social Impact Initiatives
16 August 2024: Nishka Choraria, 29, serves as the Vice President of Marketing at Crest Ventures, a prominent non-banking finance company (NBFC) with significant operations in real estate and financial services and investments. In her pivotal role, Nishka has been instrumental in shaping the company’s brand presence through her new and innovative marketing strategies and consumer-centric engagement initiatives. Her dynamic approach has not only elevated the Crest brand but also strengthened its market position.
Nishka’s leadership extends beyond marketing; she has been a driving force in the company’s corporate social responsibility (CSR) efforts. Her commitment to creating meaningful change is evident in the numerous impactful projects she has spearheaded, demonstrating that age is no barrier to making a substantial difference. Nishka’s blend of resilience and empathy has been crucial in fostering a culture of social responsibility within the organization, underscoring her belief that real change is achieved through persistent effort and a compassionate outlook.
In the realm of real estate, Nishka has significantly contributed to the success of numerous high-profile projects, including Phoenix Marketcity and Palladium in Chennai, One Crest, and Crest Greens in Raipur. Her industry knowledge and commitment to understanding specific markets have been critical in driving these projects to success. Nishka’s marketing strategies also highlight the environmental benefits of Crest Ventures’ developments, such as energy-efficient technologies and green building certifications, while also emphasizing the enhanced quality of life and long-term cost savings for residents.
One particularly noteworthy achievement is the recent launch of Crest Oaks, a landmark development in Marol that has set a new precedent for lush and luxurious living. Nishka has demonstrated that effective multi-faceted marketing goes beyond promoting properties; it involves creating and communicating a vision of a better lifestyle. Crest Oaks has not only met its sales targets but also attracted a discerning clientele that values community, wellness, and an upgraded quality of life, highlighting her belief in not just selling homes but creating communities where residents can flourish and thrive.
Nishka’s impact extends far beyond her professional achievements. Her commitment to social responsibility shines through her leadership in Empowering Villages Everywhere (EVE), an NGO she founded at the young age of 15. EVE’s mission is to uplift rural communities by providing essential resources and opportunities for growth. Under Nishka’s guidance, EVE has distributed over 500,000 solar lamps, study materials, and conducted numerous health camps, profoundly improving the lives of countless individuals.
Additionally, Nishka’s involvement with the Mumbai Center of Bhagwan Mahaveer Viklang Sahayata Samiti (BMVSS) underscores her dedication to social impact. BMVSS, India’s largest institution for fitting artificial limbs, has benefitted from her efforts to distribute prosthetic limbs across remote locations in India through the Mumbai Center. Nishka’s work has enabled thousands of disabled individuals to regain their independence and self-worth, significantly enhancing their quality of life.
Nishka seamlessly integrates real estate innovation with social impact, driving transformative change both within Crest Ventures and in the broader community. Her dual focus on advancing sustainable real estate solutions and implementing impactful CSR initiatives underscores her commitment to creating lasting, positive change across all facets of the business.
Reflecting on her journey, Nishka shares, “I am just trying to do my best. Our mission is to leverage effective storytelling to drive transformative change in both the real estate sector and our social impact initiatives. By crafting and communicating compelling narratives, I hope to reach a broader audience while deeply resonating with them, inspiring collective action and fostering a lasting, positive impact on society.”
The Rise of Real Estate in Thane & Kalyan: Quality, Sustainability, and Affordability
By Deepak Mehta, Director of Mehta Group
14th August 2024: Mumbai is called the Financial Capital of India, but the two nearby cities, Thane and Kalyan, considered to be the distant suburbs of Mumbai, have undergone a remarkable transformation over the past decade. Thane has evolved as the most perfectly balanced metropolitan city in India, with its rapid industrial as well as infrastructural development. These two markets are becoming the new hub for home buyers and developers to invest. The ease of connectivity, job opportunities, the metro station, Highway Connectivity, and the Mumbai trans-harbor link have made Thane one of the most resilient markets in MMR.
On the other hand, Kalyan, the founding city of MMR, has been shortlisted to develop as a Smart City. The Mumbai Metro Line, Kalyan Ring Road, and the revamp plan of the railway junction have boomed the residential demand. With this tremendous growth, the Thane and Kalyan Market is known for its affordable, sustainable, and high-quality homes. These elements have shaped the market dynamics and attracted both developers and homebuyers to this burgeoning city.
Quality
Redevelopment Projects: Quality housing goes beyond the mere provision of shelter. It includes safe, durable, and energy-efficient structures that improve residents’ quality of life. Many old buildings in Thane and Kalyan are undergoing redevelopment to ensure the quality of well-being.
Premium Amenities: Thane has seen a surge in demand for lifestyle-oriented residential projects. Homebuying has become attractive for middle-income buyers as they get sophisticated living experiences and get to upgrade their living standards. Developers focus on innovative design, functional efficiency, and modern amenities tailored to all age groups. Apart from this, the developers have ensured to meet the safety standards making it a safer living for the home buyers.
Sustainability
Sustainability in housing involves designing and constructing homes that minimize environmental impact and maximize energy efficiency. All the new projects are evolving with sustainability for a better future with a healthy environment.
Eco-Friendly Housing Projects: There is a rising trend of incorporating green features such as rainwater harvesting systems, solar panels, and energy-efficient designs into real estate projects in Thane.
Sustainable Design in Commercial Real Estate: The commercial real estate market also emphasizes sustainability, with developers incorporating green technologies and sustainable design features in new buildings
Affordability in Housing
The sudden surge in demand due to affordable housing projects with world-class amenities has become a dream come true for home aspirants. Thane offers various budget-friendly homes that cater to middle-income families, making it a favorable option for first-time homebuyers. Developers are creating projects that provide affordable luxury, combining quality living with cost-effectiveness.
Government Initiatives and Policies: Various government policies, such as the cluster policy and TDR policy, alongside infrastructure development projects, have made it easier for developers to build affordable housing, thereby attracting more investment in the area.
Quality, sustainability, and affordability are interlinked components of a holistic approach to housing. Thane and Kalyan’s real estate market has prioritized these aspects, to create homes that not only provide shelter but also enhance the well-being of residents, reduce environmental impact, and ensure economic stability. With the real estate sector witnessing this positive shift, these two markets will continue to attract significant investments and maintain their upward trajectory in the coming years. It has underscored Thane and Kalyan’s potential as a real estate hotspot.