Source: NDTV Profit ( http://bit.ly/3Kk5wNX )

Even though unsold inventory is increasing while sales are seeing a dip in many cities across India, it is too early to say that the real estate market is seeing a slowdown.

Gulam Zia, Senior Executive Director, Knight Frank India underlined the importance of looking at the velocity of sales to assess the situation before reaching the conclusion of a potential slowdown in the real estate sector.

“One factor that not many have been talking about is that velocities have been pretty much steady. When we are looking at the amount of time required for the selling of the entire inventory in the market, even today, it is not more than two and a half years. It gives comfort that the bad times are not yet around the corner,” he told NDTV Profit on Tuesday.

Zia cautioned against jumping to conclusions about a market downturn in the housing sector.

“My point is that while numbers are indicating a little slowdown, however, we have to look at a couple of more quarters before convincingly saying that the slowdown is here to stay. Otherwise, it could still be just one more blip in the data,” he highlighted.