Unsold inventory to take 24 months to sell off

Unsold inventory to take 24 months to sell off
11/01/2017 , by , in News/Views

The unsold inventory of residential properties in Kolkata will take nearly two years to sell off, according to a recent report by Knight Frank India.

“The unsold inventory of the city is recorded at 37,400 units. The QTS for Kolkata currently stands at a little over eight quarters,” the report said. The quarters to sell unsold inventory (QTS) is the number of quarters required to exhaust the existing unsold inventory in the market.

What’s more alarming is the time required to sell off premium properties worth Rs 1.5 crore and above in the city. “The QTS for the city’s premium market, is currently at 10.5 quarters. This is largely attributable to the relatively slow rate of sales observed in the premium housing segment in the past,” said Sangeeta Sharma Dutta, Assistant Vice President, Research.

City’s residential marketing is witnessing a slowdown currently. New launches in the city have dropped by 30 per cent in the last two years while sales recorded a dip of 14 per cent in the last one year.

“The decline in sales volume was primarily brought about in the second half of 2016 by the uncertainty and lacks of clarity in the market post the announcement of demonetisation of high value currency notes. With most buyers preoccupied in settling down their own financial matters, purchasing of properties in the short term has taken a backseat, thereby reflecting in the reduced sales volume in H2 2016,” said Dutta.

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