Greater Noida has most unsold flats in NCR, Gurugram second
The National Capital Region (NCR), considered as the largest real estate hub in the country, currently has around two lakh unsold flats, with Greater Noida and Gurgaon accounting for more than half of this inventory, reveals an assessment by a private research agency.
Greater Noida tops the chart with 61,784 unsold flats up to the third quarter, followed by Gurgaon that has 45,252 such properties.
Noida, with 25,459 unsold apartment units, occupies the third place. Another 70,000 flats (approximately) are lying unsold in Delhi, Faridabad and Ghaziabad.
The study — carried out by real estate research agency Anarock — further suggests that the scenario would remain more or less the same for the next few quarters, before prices stabilise and sales pick up. A downward pressure on the prices is also 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,” Arun Puri, chairperson, Anarock property consultants, told TOI.
“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.
However, the market situation in South India seems to have improved, the study suggests. The unsold inventory has witnessed a decline 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.”