Delhi NCR has three years worth of housing inventory in the real estate market. As per a recent Knight Frank report, the National Capital Region (NCR) saw more than 1 lakh unsold units in 2018.
The high number of inventories in the residential realty market is mainly the result of an increase in the new launches in 2018. The report states that new launches in the region registered a 35% growth during the last year. While 52% of these launches were seen in Gurugram which was followed by Greater Noida and Ghaziabad.
Although sales in the region also improved, it did only marginally of 8% year-on-year increase. Maximum sales were seen in Greater Noida which was followed by Ghaziabad and Gurugram at 19% and 17%, respectively.
Although low investor interest and an inventory overhang arrested the growth in prices in the region, the inventory continues to be high.
“An analysis of the residential market in NCR clearly shows a revival of new launches in the lower ticket sizes and affordable segment,” ET Realty quoted Mudassir Zaidi, executive director–North, Knight Frank as saying. “This trend has been particularly witnessed in the Greater Noida area.”
The report also mentions that there is a shift in the market toward housing available in the mid-segment of Rs 5-10 million brackets. In fact, 60 percent of the total supply in the residential space is mainly below the Rs 50 lakh price range which is the affordable segment and that is what is driving and will drive the market.
Talking about the commercial real estate segment, the sector saw a good revival in demand due to speed gained by co-working players. The segment registered a growth of 14% compared to 2017 with Gurugram taking a 66 % share of the total transaction activities happening in the region.
Overall, the Indian real estate segment appears to be on a recovery path. It seems that due to RERA implementation, the confidence of buyers, as well as the developers, is back in the market. Click here for the complete report.