Unsold housing stocks across seven major cities have risen by 24% since 2019 due to higher supply, but developers are expected to take 31% less time to sell these units because of strong sales momentum, according to a new report.

The report noted that actively selling unsold housing inventory reached about 4,68,000 units by March 2024 — a 24% increase since December 2019 — across seven major cities.

Despite the rise in inventory, there has been a significant reduction in the estimated time needed to sell these properties. This assessment is based on average sales rates recorded over the past eight quarters.

There has been a 31% drop in the time required to clear active unsold stock. In the first quarter of 2024, the liquidation period fell to 22 months, compared to 32 months at the end of 2019, driven mainly by a sharp surge in housing demand.

The regions covered in the analysis include major metropolitan areas and their surrounding suburbs across the seven key cities.

Conveyance deeds for four separate high-value properties, cumulatively worth ?106.4 crore, have been registered individually in a super-luxury residential project in Gurugram.

According to official documents, these large apartments — ranging between 7,361 sq ft and 9,419 sq ft — were originally booked and purchased between 2015 and 2022, but their conveyance deeds were executed only in April 2024. The properties were bought separately by two different buyers.

One buyer purchased a 7,461 sq ft luxury apartment in August 2022, priced at ?27.02 crore, which included four car parking slots. The conveyance deed for this unit was registered on April 29, 2024, with ?1.89 crore paid as stamp duty.

Another family entered into an agreement in June 2019 to purchase a 7,361 sq ft apartment in the same project for ?22.55 crore, with the final payment completed in March 2021. The conveyance deed was executed on April 26, 2024, and ?1.35 crore was paid as stamp duty for the transaction.

Average home prices in the country are expected to rise steadily over the next few years as affluent buyers drive up demand for high-end housing, according to a survey of property experts. They also warned of a continuing shortage of affordable homes.

Home purchases are increasingly concentrated among a relatively small group of buyers who are largely unaffected by higher interest rates. Economic growth, which is expected to remain stronger than that of many other major economies, is helping sustain housing demand, although analysts note that the benefits of this growth are flowing disproportionately to higher-income groups.

According to a poll conducted in May among 15 property market specialists, average home prices are projected to rise about 6% this year and next, slightly lower than the 7% forecast earlier. Home prices had risen 4.3% in 2023, based on estimates from a national housing price index.

The country's central banking authority, which previously raised interest rates by 250 basis points between 2022 and early 2023 to manage inflation, is widely expected to begin cutting rates next quarter. However, a stable currency and strong economic conditions provide limited pressure for immediate action.

Despite government efforts to expand affordable housing, a large majority of experts — 12 out of 15 — said demand in that segment will not be met over the next two to three years, while the remaining respondents predicted oversupply.

Two state-run telecom companies have decided to give preference to government organizations, both at the state and central levels, in selling their land assets worth over ?1 lakh crore. Sales to government organizations are expected to be smooth and free from unnecessary litigation. One of the companies has already raised ?1,600 crore through the sale of properties to government departments as well as private entities. The plan is to raise ?20,000 crore over the next 4–5 years through land monetization.

Property consultants view the monetization of these telecom companies’ land and properties in key cities as a strategic opportunity in the current real estate market. Post-pandemic, major commercial and residential property markets, including Mumbai, Bengaluru, Delhi, and Hyderabad, have witnessed significant activity. The telecom companies’ properties are located in prime areas with substantial commercial and residential potential, adding considerable value and making them highly sought after.

Land monetization is seen as a key strategy to revive the ailing telecom firms. The government has been taking measures to improve the operations of these loss-making entities. In 2019, a revival package worth around ?69,021 crore was provided to reduce operating costs. Additionally, in June 2023, the government approved the allotment of 4G/5G spectrum to one of the companies with a total outlay of approximately ?89,047 crore through equity infusion.

The Managing Director and Chief Executive Officer of a wealth and alternatives-focused asset firm purchased two sea-view luxury apartments in a super-premium residential tower in Mumbai’s Worli area for a total of ?170 crore. The apartments cover 12,900 sq. ft. of built-up area on the 45th and 46th floors of the tower. The deal was struck at approximately ?1.31 lakh per sq. ft., making it one of the most expensive deals on a per sq. ft. basis in the country.

The apartments were purchased directly from the developer of the project. Both units had been sold by the developer within three years of acquiring them from a joint venture partner. The mixed-use development comprises two towers, one housing a luxury hotel and the other luxury residences.

The apartments bought are part of a larger set of over 60 units previously acquired by the developer from its joint venture partner for a total investment of ?4,000 crore. Another high-profile buyer recently acquired a penthouse of similar size in the same project for ?230.55 crore.

A real estate developer reported a net consolidated loss after tax of ?6.71 crore for the quarter ended March 31, 2024, compared with a profit after tax of ?26.75 crore in the corresponding quarter of the previous fiscal, according to a stock exchange filing. The company’s net consolidated total income rose to ?946.84 crore, up 116.97% from ?436.39 crore last year.

For FY24, the company achieved pre-sales of ?5,914 crore, up 90% year-on-year, and launched 12 projects with a saleable area of 9.47 million sq. ft. Investments worth ?410 crore from external investors were successfully returned. The company deployed ?300 crore of land advances using internal accruals and debt.

The board of directors reappointed a non-executive independent director for a second five-year term and declared an interim dividend of ?6.30 per equity share, paid during the quarter.

Sales soared to ?1,947 crore in Q4 FY24, marking a 93% year-on-year growth, with sales volume for the quarter standing at 2.35 million sq. ft. and collections of ?1,094 crore. The company’s net debt stood at ?2,151 crore, with a net debt-to-equity ratio of 1.14, and the weighted average cost of debt was 11.59% as of March 31, 2024.