Of the 1.82 lakh unsold units in the entire NCR (National Capital Region) market, Gurugram accounted for nearly 56,550 units (31 percent share) of total unsold stock – the highest in the region – followed closely by Greater Noida, with 50,800 unsold units (28 percent share), says a recent report.
The total value of unsold units in Gurugram and Greater Noida is nearly Rs 80,570 crore and Rs 26,720 crore, respectively, as per ANAROCK data for Q2 2019.
Average property prices in Gurugram in Q2 2019 stood at Rs 6,100 per sq ft, a dip of a percent in the last two years. Markets like Ghaziabad, Noida and Greater Noida saw average property prices rise three percent, two percent and two percent, respectively. In contrast, Delhi saw its average prices decline four percent during the same period.
The total unsold inventory in Ghaziabad was around 17 percent, Noida 11 percent, Delhi seven percent, and Bhiwadi and Faridabad at six percent each, the analysis said.
Noida’s 20,860 unsold units are worth Rs 18,380 crore. This clearly indicates that the unsold properties in Gurugram largely belong to the luxury segment against affordable properties in Greater Noida.
In the last two years, Gurugram had the dubious distinction of adding 10 percent to its unsold stock rather than seeing a decrease. In the second quarter of 2017, Gurugram had nearly 51,220 unsold units. The same has risen to 56,550 units in Q2 2019.)
In contrast, Noida had 27,000 unsold homes in Q2 2017, which decreased 23 percent to 20,860 units in Q2 2019.
Similarly, in Greater Noida, unsold inventory decreased 26 percent in the same period from 69,080 units to 50,810 units.
Ghaziabad saw its unsold stock decrease to 30,250 units in the second quarter of 2019, 22 percent in two years.
Faridabad, having least unsold inventory in NCR (5,180 units), saw its unsold stock fall 27 percent since Q2 2017. Bhiwadi, with current unsold inventory of 5,930 units, saw a whopping 47 percent decline during the last two years.
Contrary to this, Delhi saw its unsold stock pile up to 12,340 units in the Q2 2019, increasing four percent since Q2 2017.
These are clear indicators that affordable markets are finding favour with buyers, which is in line with the fact that affordable housing is leading the pack across markets -- most notably NCR.
The inventory overhang in Q2 2019 for NCR stood around 44 months – down from 65 months in Q2 2017.
Greater Noida’s inventory overhang declined to 39 months from 82 months in the last two years, followed by Gurugram, which saw it sliding to nearly 51 months as at the quarter-ending June from 80 months in Q2 2017.
Noida also saw a decline in its inventory overhang to 37 months from 68 months in two years. Faridabad’s inventory overhang declined from 47 months in Q2 2017 to 33 months in Q2 2019. The same for Ghaziabad fell from 91 months to 42 months during the same period.
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