The real estate market across the country is moving towards revival but sales are yet to pick up. The worst sufferer amid slowdown is Delhi-NCR where unsold inventory is high affecting homebuyers sentiments. “An inventory overhang of over 250,000 unsold units continued denting developer sentiments. Over 30% of the inventory is under-construction due to litigation and clearance troubles, ” a report by realty portal 99acres.com for April-June quarter said.
Homebuyers have stayed away from the Delhi-NCR market despite price correction with property prices falling 1 per cent in Apr-Jun 2016, as compared to Jan-Mar 2016.
Although residential demand remained subdued, it continued to dominate the highest supplied property type in Delhi-NCR. Soaring inventory, stalled infrastructure projects, and frequent legal tussles faced by developers are hurting market sentiments in this particular region.
“The numerous government policies and infrastructure enhancements are yet to make a mark on Delhi NCR’s property landscape. Reduction of disparity in the demand-supply equation can further improve the real estate story of Delhi NCR.” Narasimha Jayakumar, chief business officer, 99acres, said.
The demand supply ratio in the residential market that needs to be analysed to understand the market. “The demand-supply gap in residential format persisted despite apartments capturing 60 per cent of the total markets share,” the report said. The region has witnessed slight disparities in demand and supply of various budget categories in Apr-Jun 2016.
The total supply of residential apartments in Gurgaon stood around one-third of the total supply of residential apartments in Delhi-NCR, followed by Noida and Greater Noida, which accounted for 20 per cent and 10 per cent supply in this category.
With the unsold inventory overhang and delays, homebuyers in Delhi-NCR have preferred ready-to-move in properties over underconstruction flats. The total availability of ready-to-move in properties remained insufficient to meet the homebuyers demand.
Below are the pointers from the 99acres report that elaborate on demand and supply in Delhi-NCR
– Delhi and Gurgaon boasted of largest share of ready-to-move in homes
-Noida and Greater Noida saw a good demand for ready-to homes, but majority of the projects remained under-construction due to multiple hurdles
– Faridabad witnessed oversupply of ready-to-move in properties, mostly in 2BHK and 3BHK configuration units
-Demand for under-construction homes outperformed supply in Gurgaon with Dwarka Expressway, Golf Course Extension Road and Sohna Road witnessing robust construction activity, adding to the overall supply of under-construction properties in the zone
– Mid-income housing (Rs 40-60 lakh) was inadequately met, high-income housing category (Rs 60 lakh-Rs 1 crore) exhibited oversupply, with Faridabad leading the race in this respect
– Gurgaon and Delhi saw a shortfall in supply of properties in the high income bracket, that is, between Rs 60 lakh and Rs 1 crore
-Delhi recorded an oversupply in the ultra-luxury budget bracket (Rs 2 crore and above), creating a state of disequilibrium
-The mid-income housing category (Rs 40-60 lakh) was the most preferred in Noida-Greater Noida, followed by Gurgaon. However, supply in both the zones fell short due to maximum new launches focussing on higher ticket prices.