Sales Absorption Rate (Units per Month) is a critical property development finance UK measure that indicates the speed at which newly developed units are sold each month. It is calculated by dividing the number of units sold in a month by the total number of available units. This metric enables developers to forecast cash inflows, plan working capital, and assess the timing of finance drawdowns. Understanding sales absorption supports accurate budgeting, ensures alignment with lender expectations, and informs decisions around marketing strategy, pricing, and the sequencing of property development projects.
This sits beneath Cash Inflow Timing, introducing a more specific variant of the measure without changing its core interpretation. It is commonly considered alongside Sales Velocity (% of GDV Sold per Month), as both are closely related measures used to assess similar aspects of performance or risk.
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