With inventories remaining high, property experts believe it could take more than four years for developers in Gurgaon and Noida to sell their stock of homes going by the pace of sales in recent months, reports fe Bureau in Mumbai.
According to data from real estate data and analytics provider PropEquity, while builders in Gurgaon could take a little over four years its clear inventory — which is the highest among the top eight Indian cities — those in Noida may take just under that time.
The data show that sales of residential units fell by a sharp 13% on a year-on-year basis, while launches declined 51% year-on-year between January and April 2016.
Indeed, with the slow sales, the total outstanding inventory in these eight cities is recorded at a sharp 1,126 million square feet, which is about three years of inventory (35 months) based on the absorption rate of the past three months, HSBC noted in a June 2016 report.
On a city level, demand declined 23% y-o-y in Mumbai and 10% y-o-y in Gurgaon. Southern markets also remained weak with Bengaluru witnessing a 12% decline in absorption and Chennai declining 35%, reeling under the impact of last year’s floods.
The only bright spots in the pack were Hyderabad, where demand grew 21% y-o-y, and Greater Noida, which saw a 31% y-o-y increase in absorption.