1.70 lakh hous­ing units re­main un­sold in Delhi NCR

De­mand for residential flats also dropped by 35% this year, a sur­vey of 120 de­vel­op­ers by As­socham re­vealed

HT Estates - - FRONT PAGE - HT Es­tates Cor­re­spon­dent

The news is not good. About 1.70 lakh hous­ing units are avail­able in the NCR residential mar­ket, with 90,000 dwelling units un­der con­struc­tion and likely to be fur­ther de­layed for hand-over, a re­cent sur­vey by As­socham has re­vealed.

Rea­sons for an in­crease in in­ven­tory level has been at­trib­uted to fall­ing de­mand from en­dusers and in­vestors. So much so, peo­ple who usu­ally hunt for ready-to-move-in apart­ments are stay­ing away from the mar­ket, a ma­jor­ity of sur­vey re­spon­dents said.

“A large in­ven­tory is piling up de­spite prices cor­rect­ing by over 20% in the last one year, while there is a huge fall in the new projects be­ing launched by de­vel­op­ers who are hard­pressed for cash,” stated the sur­vey, in which nearly 120 real es­tate de­vel­op­ers in Delhi NCR par­tic­i­pated.

De­mand for buy­ing prop­erty also de­creased by over 30% to 35% over the last year. The ticket price 3-BHK, 2 BHK and sin­gle room flats saw cor­rec­tion by 30% in Noida, 25% in Gur­gaon and 15% in some key ar­eas of Delhi but still, the de­mand stayed sub­dued.

“The sen­ti­ment in the hous­ing mar­ket is re­ally at a low key. Even though there are signs of macroe­co­nomic im­prove­ment, it would be a quite a lag be­fore it gets re­flected on the real es­tate mar­kets,” said DS Rawat As­socham sec­re­tary gen­eral while re­leas­ing the sur­vey.

High lev­els of debt were one of the ma­jor prob­lems de­vel­op­ers faced, af­fect­ing sen­ti­ments and lead­ing to their poor val­u­a­tions in stock mar­ket, lim­it­ing what­ever chances they had of re­pair­ing their bal­ance sheets.” Some­how, it re­flects in the timely de­liv­ery of the projects, cou­pled with the prob­lems cre­ated by high in­ter­est costs de­spite some course cor­rec­tion by the Re­serve Bank of In­dia (RBI),” the pa­per said.

The residential mar­ket has wit­nessed a steep de­cline by 30% to 35% in new launches as well as de­mand, re­sult­ing in sig­nif­i­cant shrink­age. The un­sold in­ven­tory pres­sure in NCR re­gion is the high­est among all other cities.

Ac­cord­ing to the ma­jor­ity of real es­tate de­vel­op­ers in NCR re­gions said, about 60% of the un­sold real es­tate in NCR is in ar­eas which are cur­rently un­in­hab­it­able. The sales have slowed down in NCR as well. The prob­lem has been con­founded by de­lays in reg­u­la­tory clear­ances and lit­i­ga­tions. The NCR residential mar­ket still has an es­ti­mated 1,67,000 units of un­sold in­ven­tory which is ap­prox­i­mately 30% of the units un­der con­struc­tion, adds the sur­vey.

As per the sur­vey, there are nearly 8.5 mil­lion work­ers en­gaged in build­ing and other con­struc­tion ac­tiv­i­ties in In­dia.

Av­er­age hous­ing prices re­mained sta­ble in NCR dur­ing the year, ac­cord­ing to the pa­per. The in­ven­tory level has in­creased be­cause of the fall­ing de­mand and sales in the sec­tor as gen­uine buy­ers are de­terred.

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