According to a study, the real estate developers in NCR are sitting on an unsold inventory worth over Rs 77,000 crore with residential sales witnessing an unprecedented decline.
While sales numbers fell by 6 per cent in Gurguram, the housing sales declined by 38 percent in Noida during the third quarter year-on-year. On the other hand, Gurugram witnessed a YoY fall of 74 percent in terms of launches. Noida also saw the launches decreasing by 61 percent, when compared to the same period a year ago.
The study by real estate portal PropTiger.com mentioned that Noida also has the highest inventory overhang of 52 months among India’s nine key residential markets. Keeping the current sales velocity in mind, real estate developers in this market would take four years and four months to sell of the existing stock. The builders in Gurugram would also take a long time to sell their unsold stock with a 25-month overhang.
The share of sales and new launches in Gurugam is on the rise, especially for affordable homes, although the city has traditionally been a high-end market. As many as 74 per cent homes sold in the Millennium City during the quarter ending December were units priced up to Rs 45 lakh, while 79 per cent of overall launches were units priced up to Rs 25 lakh.
All the fresh launches in Noida in Q3 were units priced above Rs 1 crore. About 15 per cent units sold during the quarter in poster-child of affordable realty in the NCR were also priced above Rs 1 crore. However, the report also suggested that the affordable homes still contribute nearly 53 per cent to the overall sales.
While the average price of units only increased by 1 percent in Noida, a residential market that has been hit the hardest by the ongoing slowdown in sales, Grurgram witnessed a decent 6 per cent annual appreciation in the prices.
Talking about the development, Dhruv Agarwala, Group CEO, Housing.com; Makaan.com & PropTiger.com said, “Project delays, insolvency cases and the NBFC issue, have adversely impacted NCR real estate market. We expect the negative buyer sentiment towards the market to change soon. Various tax benefits offered by the government to promote affordable housing also gives us reason to believe a recovery might be in the offing, in the medium term.”