Unsold housing inventory highest in Delhi-NCR at 2,50,000 units: Report
The report further said that demand for residential market has witnessed a steep decline by 25-30% whereas the demand for commercial space dropped by 35-40% in Delhi-NCR region over the last year.
Inventory of residential premises and commercial estates has risen between 18-40% in different cities with maximum unsold stock lying in Delhi-NCR, creating a drag on linked sectors like financial services and steel, a report said on Thursday.
The study by Assocham observed that in spite of a fall in prices and interest rates, demand for residential market has witnessed a steep decline by 25-30% whereas the demand for commercial space dropped by 35-40% in Delhi-NCR region over the last year.
"Mumbai, which had been witnessing an increased activity around Navi Mumbai, Thane and other suburbs, is carrying the second largest inventory, followed by Bengaluru and Chennai.
"While Mumbai had unsold inventory of 27.5 %, for Bengaluru it was 25 %, Chennai (22.5%), Ahmedabad (20%), Pune(19.5%) and Hyderabad (18%)," the paper noted.
It said the NCR residential market has an estimated 2,50,000 units of unsold inventory which is approximately 35 % of the units under construction due to delay in regulatory clearances and litigations.
"The ticket price of three-bedroom, two-BHK and single room flats has seen correction by 35% in Noida, 30% in Gurgaon and 25% in some key areas of Delhi. Still, the demand stays subdued," the paper said.
This year, the unsold inventory in residential real estate was the highest in Delhi-NCR at 2,50,000 units, followed by the Mumbai metropolitan region at 98,000.
Bengaluru came next with 66,000 units, Chennai with 60,000 units and Pune followed with 55,000 units.
The subdued construction activity has had a huge negative impact on the labour market since there are about 10 to 12 million workers engaged in the real estate sector. The slump in sales and launches clearly indicates that the residential market is facing a strong price resistance, it said.
Total number of new project launches in National Capital Region (NCR) has come down by 30-35% in comparison to the last year, said the Real Estate report.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Retirement Planning: SIP+SWP combination; Rs 15,000 monthly SIP for 25 years and then Rs 1,52,000 monthly income for 30 years
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
EPF vs SIP vs PPF Calculator: Rs 12,000 monthly investment for 30 years; which can create highest retirement corpus
Home loan EMI vs Mutual Fund SIP Calculator: Rs 70 lakh home loan EMI for 20 years or SIP equal to EMI for 10 years; which can be easier route to buy home; know maths
03:08 PM IST