New Delhi: A total of one lakh houses worth Rs 77,000 crore is lying unsold in Delhi NCR markets because of the slowdown in the real estate industry.
Sales declined in the market in the October-December 2019 quarter despite higher tax deduction, good stock of ready to move apartments and low inters rates for home loans, according to a report by property portal Proptiger.com.
Homes sales dropped 38 percent in Noida while it declined by around 6 percent in Gurugram in the October-December quarter of 2019 as compared to the same quarter of 2018.
As far as launches are concerned, Gurugram saw 74 percent drop while Noida witnessed 61 percent decline in the period.
“Project delays, instances of big developers going insolvent and the NBFC issue, to name a few reasons, have adversely impacted NCR real estate. We expect the negative buyer sentiment towards the market to change as the apex court has passed decisive judgments in the Amrapali, Jaypee and Unitech cases. Various tax benefits offered by the government to promote affordable housing also gives us reason to believe a recovery might be in the offing, in the medium term. On the other hand, the share of affordable homes in the Gurugram market is also likely to increase as new infrastructure developments give a boost to city suburbs,” said Dhruv Agarwala, Group CEO, Housing.com; Makaan.com & PropTiger.com
The unsold inventory of completed houses in Noida will take about 52 months to get cleared at the current rate of sales while the same would be 25 months for Gurugram.
Gurugram, the city with higher-end properties, is seeing a change in the product types by the builders. The share of affordable houses in the total sales and new launches in Gurugram is rising. Three in every four houses (about 74 percent) sold in Gurugram during the October-December 2019 quarter were priced up to Rs 45 lakh and as many as 79 percent of overall launches were units priced up to Rs 25 lakh.
In Noida, all the launches in the October-December 2019 quarter were of homes priced above Rs 1 core. About 15 percent units sold during the quarter in Noida were also priced above Rs 1 crore. Affordable homes accounted for about 53 percent to the overall sales.
Prices of residential property went up by 6 percent annually in Gurugram while in Noida, the prices increased by mere 1 percent in 2019 as compared to 2018.