Unsold inventory for top real estate developers scales new high in FY19

Rises to 30 months worth of revenue, up from 24 months a year ago

The country’s top real estate developers continue to add unsold inventory at a steady pace, leading to a deterioration in the industry’s financial ratios.

The top 25 developers, whose audited finances for FY19 are available, were sitting on unsold inventory worth nearly Rs 1.4 trillion at the end of March this year, up 19 per cent year-on-year (YoY). In comparison, the industry’s combined revenues were down 7.2 per cent in the last fiscal year, while net profits rose 7.7 per cent.

The inventory was equivalent to nearly 30 months worth of the industry’s revenues at the end of March 2019, up from