JLL: Developers sit on unsold housing inventory worth Rs 3.7 lakh crore

New Delhi: Housing units inventory worth Rs 3.7 lakh crore remain unsold across the top seven cities in the country as of March-end, according to a JLL report.

The report titled ‘India Residential Market Update Q1-2020’ noted that the first quarter of 2020 witnessed an increase in unsold inventory as launches outpaced sales by a significant margin.

Unsold inventory increased from 4,42,228 units in the fourth quarter of 2019 to 4,55,351 units in the first quarter of 2020. Further, Mumbai surpassed Delhi-NCR with the maximum quantum as well as value of unsold inventory, as per the report.

It said an assessment of years to sell (YTS) reveals that the expected time to liquidate this stock has increased marginally from 3.2 years in the last quarter of 2019 to 3.3 years in Q1 2020. With anticipated slower sales in the coming quarters, the time to sell is likely to increase.

“The duration to monetise the existing housing inventory of around 4,55,000 units is expected to extend. Resultantly, developers will have to sit on this unsold inventory worth Rs 3,70, 000 crore for a relatively longer duration,” the report said.

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