With subdued demand amid the slowdown, the national capital region (NCR) has accumulated over Rs 77,000 crore unsold housing stock, according to a report by PropTiger.com.
Home sales declined 38 per cent in the October-December quarter of 2019-20 in Noida and 6 per cent in Gurugram year-on-year. In terms of launches, Gurugram witnessed 74 per cent decline and Noida 61 per cent fall over the year-ago period, it said.
“The demand slowdown has resulted in real estate developers in the NCR accumulating unsold stock worth over Rs 77,000 crore. Developers in Noida and Gurugram markets were sitting on a combined stock of over one lakh units at the end of 2019,” said the report by Elara Technologies-owned real estate advisory portal.
Dhruv Agarwala, Group CEO of PropTiger.com, said, “Project delays, instances of big developers going insolvent and the NBFC issue, to name a few, have impacted the NCR real estate. We expect the negative buyer sentiment to change after the apex court judgments in the Amrapali, Jaypee and Unitech cases.”
Noida has the highest inventory overhang of 52 months among India’s nine key residential markets. Thus, the developers would take four years and four months to sell the existing stock, keeping in mind the current sales velocity, it added.
With a 25-month overhang, builders in Gurugram would also take a long time to sell their stock, the report said.