It has emerged from a study undertaken by the real estate research agency Anarock that the National Capital Region (NCR), supposed to be the largest real estate hub in the country, currently has an inventory of two lakh unsold flats, with more than half of these in Greater Noida and Gurgaon.
Topping the chart with 61,784 unsold flats up to the third quarter is Greater Noida, followed by Gurgaon with 45,252 such properties. Noida, with 25,459 unsold apartment units, comes at the third place. Another 70,000 flats (approximately) are lying unsold in Delhi, Faridabad and Ghaziabad.
The study further suggests that the same scenario is likely to prevail over the next few quarters, when prices would stabilise and sales would pick up. A downward pressure on the prices has been predicted for the next few quarters.
“There are many reasons that have resulted in the price slide in NCR. To begin with, excessive delays in project construction and possession have hurt buyers’ sentiments and led to subdued demand. Also, many projects have been stalled due to agitations and litigation issues. Then, the massive unsold inventory itself has acted as a sentiment suppressant. And finally, while demonetisation, RERA and GST are potentially positive moves for the industry, they have played a significant role in affecting buyer sentiment negatively, contributing to the price fall,” said Arun Puri, chairperson, Anarock property consultants.
“Prices are likely to remain stagnant for a few more quarters. Recent cases of developers’ bankruptcy or insolvency and the huge number of stalled projects have made buyers skeptical about the market. Also, the delay in implementation and dilution of RERA has acted as a dampener,” Puri added.
Down south the situation is different. The study suggests that the market situation in South India seems to have improved. The unsold inventory declined by 21% in Hyderabad, 20% in Chennai and 15% in Bengaluru up to the third quarter of 2017, as compared to the corresponding period of 2016.
Commenting on the figures, Credai’s NCR president Pankaj Bajaj said, “The number (two lakh unsold flats), shown by the agency, probably includes even under construction apartments, which are currently incomplete and not ready for purchase. The number is also explained by the fact that NCR is India’s biggest real estate market. All these apartments are going to be absorbed in due time.”