Share of unsold flats in Gurugram, Delhi increased over last 2 years: Real estate study
The study also identified the reasons for the continued slowdown in realty sector that included factors, such as lack of funding, over-dependence on non-banking finance companies(NBFCs), and the impact of demonetisation on the market.Updated: Nov 05, 2019 14:22 IST
Three cities of the National Capital Region (NCR), namely Noida, Greater Noida and Ghaziabad, witnessed the maximum reduction in unsold houses in the last two years as compared to Gurugram and Delhi, both of which saw an increase in the unsold stock by 7% and 20% respectively, stated a study released on Monday by real estate consultancy, Anarock .
The study also identified the reasons for the continued slowdown in realty sector that included factors, such as lack of funding, over-dependence on non-banking finance companies(NBFCs), and the impact of demonetisation on the market.
As per the data, NCR cities falling in Uttar Pradesh performed better and reduced the unsold stock while Delhi’s unsold stock increased by 20% from 10,770 units in the third quarter of 2017 to 12,960 in the same quarter of 2019. Gurugram also witnessed the same situation as unsold inventory stood at 55,900, which was 7 % more compared to the same period in 2017 when 52,460 units remained unsold, stated the study.
Anuj Puri, chairman, Anarock, said that the reason why cities like Noida, Greater Noida and Ghaziabad in Uttar Pradesh performed better is because of the fact that developers showed constraint in the launch of new projects and preferred to complete ongoing projects first.
“Gurugram alone saw more than 2,030 units being launched in the third quarter of 2019, as compared to the three key cities of UP that collectively launched a mere 1,610 units. Two years ago also Gurugram saw a new supply of 3,520 units while the other three cities launched just 1,220 units in the same quarter,” he said.
The report also stated that real estate sector was facing cash crunch for the last several years after banks reduced their exposure to residential real estate that forced the builders to depend on non-banking finance companies (NBFCs). “The demonetisation drive in 2016 was another big blow to the sector which was heavily driven by cash transactions,” it stated.
The adverse liquidity situation further impacted the construction schedule and per the figures, 1.74 lakh homes in the top seven cities are stalled due to lack of funding or litigation, the study said.