Unsold housing inventory highest in Delhi NCR UNSOLD INVENTORY
An estimated 2,50,000 units remain unsold in Delhi NCR due to delay in clearances
Delhi-NCR is stuck with the highest unsold housing inventory in India followed by Mumbai, says a new report.
The woes of the real estate sector are far from over with i nventory of residential premises and commercial estates rising between 18% to 40% in different cities with the maximum unsold stock existing in Delhi NCR over the last one year. This has created a big drag on several other sectors like financial services and steel, an Assocham study has said.
In spite of fall in prices and interest rates, the demand for residential market has witnessed a steep decline by 25% to 30% whereas the demand for commercial space has dropped by 35% to 40% in the NCR region over the last year, the report said.
The total number of new project l aunches i n t he Mumbai Bengaluru Chennai Ahmedabad Pune Hyderabad National Capital Re gion ( NCR) have come down by 30% to 35% in compared to last year.
The unsold inventory is highest in Noida, with over 1,20,000 units while t he remaining unsold inventory is in Delhi, Ghaziabad and Faridabad.
The NCR residential market is stuck with an estimated inventory of 2.50 lakh units while another 1.75 lakh dwellings under construction are l i kely t o be delayed, t he reports says.
Mumbai, which had been witnessing an increased activity around Navi Mumbai, Thane and other suburbs, currently has the largest inventory, followed by Bengaluru and Chennai.
While Mumbai had unsold stock of 27.5%, Bengaluru had 25%, Chennai ( 22.5%), Ahmedabad ( 20%), Pune (19.5%) and Hyderabad (18%), it said.
NCR’s unsold inventory approximately makes up 35% of the units under construction.
This was due to the delay in regulatory clearances and litigations.
“It is a difficult period both for the developers and the consumers who have booked flats. The regulators, developers, banks and consumers should form joint groups to work out a solution,” Assocham secretary general D S Rawat has said.
“The ticket price (of) threebedroom, two-BHK and single room flats have seen a correction by 35% in Noida, 30% in Gurgaon and 25% in some key areas of Delhi, but still, the demand is subdued,” the paper said.
Mumbai metropolitan region had unsold inventroy of 98,000. Bengaluru came next with 66,000 units, Chennai with 60,000 units and Pune with 55,000 units, says the study.
The subdued construction activity has had a negative impact on the labour market since there are about 10 to 12 million workers engaged in the real estate sector.
The slump in sales and launches clearly indicates that the residential market is facing a strong price resistance.