With residential sales on the decline, real estate developers in NCR are sitting on an unsold inventory worth over Rs 77,000 crore, a study has said.
Housing sales declined 38 percent in Noida during the third quarter year-on-year while sales numbers fell by 6 percent in Gurguram. In terms of launches, Gurugram witnessed a YoY fall of 74 percent while Noida saw launches decreasing 61 percent when compared to the same period a year-ago, a study by real estate portal PropTiger.com said.
Noida also has the highest inventory overhang of 52 months among India’s nine key residential markets, the study reveals.
This implies that real estate developers in this market would take four years and four months to sell of the existing stock, keeping in mind the current sales velocity. With a 25-month overhang, builders in Gurugram would also take a long time to sell their unsold stock.
The share of sales and new launches, especially for affordable homes, in Gurugram, which has traditionally been a high-end market, is on the rise. As many as 74 percent homes sold in the Millennium City during the quarter ending December were units priced up to Rs 45 lakh; 79 percent of overall launches were units priced up to Rs 25 lakh.
In Noida, which has been the poster-child of affordable realty in the NCR, all the fresh launches in Q3 were units priced above Rs 1 crore. Nearly 15 percent units sold during the quarter here were also priced above Rs 1 crore. However, affordable homes contributed nearly 53 percent to overall sales, the report said.
Average price of units also saw 6 percent annual appreciation in Gurugram while prices increased only 1 percent in Noida, a residential market that has been hit the hardest by an ongoing slowdown in sales.
“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,” said Dhruv Agarwala, Group CEO, Housing.com; Makaan.com & PropTiger.com.