Noida-Gurugram have most unsold homes; no buyers for nearly half of completed units

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Published: January 21, 2019 6:10:29 PM

NCR towns of Gurugram and Noida have the most number of unsold homes, with nearly half of the units built and completed yet to find buyers, a report by PropTiger showed.

Embassy group, housing projects, Embassy Springs, REIT, private residencesNCR (Gurugram-Noida) had the maximum share of inventories above three years of age, followed by Chennai and Mumbai Metropolitan Region in that order.

NCR towns of Gurugram and Noida have the most number of unsold homes, with nearly half of the units built and completed yet to find buyers, a report by PropTiger showed. Perhaps as a causal effect of high inventories, NCR is the only region, among nine major real estate markets, to have  registered a negative y-o-y growth in pricing. The other eight cities did record a rise in real estate prices, but it was more or less marginal. Only Hyderabad registered a price hike in double digits at 11% y-o-y, the report showed.

NCR (Gurugram-Noida) had the maximum share of inventories above three years of age, followed by Chennai and Mumbai Metropolitan Region in that order. NCR also has the highest share of completed units in unsold inventory at 43%, followed by Ahmedabad at 34% and Chennai at 29%. The cities that were studied for the report were Pune, Bengaluru, Chennai, Hyderabad, Kolkata, Ahmedabad, Mumbai Metropolitan Region, Gurugram and Noida.

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Hyderabad, with 20 months of inventory overhang and lowest inventory age, has turned out as the best performer in terms of inventory profiles. Across the cities, almost half of the unsold inventories are of the less than 60 sq mts carpet area.

Sales, across cities, have seen an 8% q-o-q decline. While Gurugram is the only city to record a y-o-y fall in sales, Noida has recorded a meagre 4% y-o-y rise in sales. Pune and MMR are the only cities that showed more than 50% y-o-y rise in sales. Sales for under-construction units saw a q-o-q decline from 67,825 units to 61,412 units. More than 50% of the sales were in the less than 50 lakh budget segment.

New unit launches seem to be struggling according to the report. Q3 FY19 saw a decline in launches by 479 units over the last quarter. However, it did record a marginal 3% y-o-y rise. Out of the total launches, almost 60% were launched in the budget below Rs 50 lakh.

MMR registered a maximum decline of 50% y-o-y in new launches while the other cities that saw a decline were Ahmedabad, Hyderabad and Noida. Pune, however saw a 5006 units rise in new launches y-o-y followed by Gurugram recording a rise by 3589 units.

With an expected delivery of 1,60,000 units in the last quarter of this fiscal, the total units delivered will amount to 5,39,587 units. The report anticipates a fall in the delivery of units in the next fiscal to 5,09,431 units, this is predicted to dip further to 3,72,526 in FY21.

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