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Construction : Real Estate | September 2013 | Source : Construction Update

Rs 58,000-cr real estate inventory held with top builders

According to an analysis, India’s top builders are sitting on a huge unsold real estate inventory, worth nearly Rs 58,000 crore, which could take more than two years to sell. At the end of last March, the combined unsold inventory of these builder companies rose 25 per cent from a year earlier. Their net sales remained almost flat during the same period.

DLF, India’s largest real estate developer, accounted for almost a third of the Rs 58,000-crore pile-up. As of March-end, the Delhi-based company reported an inventory worth Rs 17,600 crore, 18 per cent more than that two years earlier. The company’s consolidated net sales declined from Rs 9,561 crore to Rs 7,773 crore during this period. Following DLF is HDIL, which reported an inventory of Rs 12,043 crore at the end of March this year, more than six times its net sales last financial year.

Indiabulls Real Estate is third on the list, with an unsold inventory worth Rs 5,111 crore, nearly four times its 2012-13 net sales. The situation might look even grimmer if the figures for unfinished projects or those under construction (capital work in progress) were to be included. At March-end, 19 firms in the sample reported Rs 12,300 crore of capital work in progress.

For the entire sector, the unsold inventory could be many times more, as a majority of developers are not listed. Delhi and the National Capital Region (NCR), for instance, have a little more than 400 builders but only four of those are listed. In Mumbai, there are around 1,40,000 unsold apartments priced at an average Rs 1.2 crore each, according to estimates.

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