Demand for property in Delhi-NCR region has slumped by 30-35 per cent in the last one year, a survey today said.
According to the survey by industry body Assocham, the unsold inventory pressure in the region is the highest among all other cities, even as prices have declined in the last one year.
“The National Capital Region (NCR) residential market is stuck with an estimated inventory of 1,70,000 units while another 90,000 dwelling units under-construction are likely to be delayed for hand-over,” the survey said.
It added, “Prices of 3-bedroom, 2 BHK and single room flats have seen correction by 30 per cent in Noida, 25 per cent in Gurgaon and 15 per cent in some key areas of Delhi but still, the demand stays subdued.”
The survey was conducted by Assocham among 120 real estate developers in Delhi-NCR.
“A large inventory is piling up despite prices correcting by over 20 per cent in the last one year, while there is a huge fall in the new projects being launched by developers who are hard-pressed for cash,” the paper noted with concern.
The increase in inventory level is because of the falling demand from actual users as well as investors. Even the ready-to-move flats are finding few buyers, majority of respondents who took part in the survey said.
“The sentiment in the housing market is really at a low key. Even though there are signs of macroeconomic improvement, it would be a quite a lag before it gets reflected on the real estate markets,” Assocham Secretary General D S Rawat said.
The survey further said, one of the issues afflicting the sentiment is the high level of debt with the real estate developers and their poor valuations in the stock markets, limiting their avenues for repair of the balance sheets.
Majority of real estate developers said about 60 per cent of the unsold real estate in the NCR region is in areas that are currently uninhabitable. The problem has been confounded by delays in regulatory clearances and litigations.
As per the survey, there are nearly 8.5 million workers engaged in building and other construction activities in India.