The slump in Indian real estate is refusing to cease to exist. As per the latest report, inventory worth over Rs 77,000 crore is lying unsold in NCR alone.
NCR real estate market is under the triple effects of project delays, insolvency cases and the NBFC issues. Negative buyer sentiment continues to exist despite assurance from RERA and other authorities as well as developers.
Affordable homes formed a major chunk of sales across the region.
Housing sales declined 38 percent in Noida during the third quarter year-on-year. Fresh launches also saw a decline as Noida saw a dip of 61 percent when compared to the same period a year-ago, claimed a study by real estate portal, Money Control reported.
In terms of inventory, Noida has the lion’s share. The city has an overhang of 52 months among India’s nine key residential markets, the study reveals.
Inventory overhang refers to the time real estate developers in this market would take to sell of the existing stock, keeping in mind the current sales velocity. An overhang of 52 months implies that it would take four years and four months to sell off the complete inventory.
Noida has shown very unexpected results in affordable homes too. The city which has been the poster-child of affordable realty in the NCR saw all the fresh launches in Q3 priced above Rs 1 crore. Affordable homes contributed nearly 53 percent to overall sales.
By far, Noida seems to be the residential market that has been hit the hardest by an ongoing slowdown in sales. The average price saw a rise of just 1 percent.
Gurugram is performing a little better than its UP-counterpart.
Sales numbers fell by 6 percent in Gurugram in the same period. In terms of launches, Gurugram witnessed a YoY fall of 74 percent.
In the case of inventory, the situation is a bit better than Noida but still bothersome. With a 25-month overhang, builders in Gurugram would also take a long time to sell their unsold stock.
Gurugram traditionally has been a high-end market. However, the past few quarters are witnessing a rise in the share of sales and new launches of affordable homes in the city.
As many as 74 percent homes sold in the Millennium City during the quarter ending December were priced up to Rs 45 lakh. 79 percent of overall launches were units priced up to Rs 25 lakh.
Average price of units also saw 6 percent annual appreciation in Gurugram.