Homebuyers in the Delhi NCR are now reaping the benefits of this upcycle because a 57 percent cut in five years is the highest reduction in unsold inventory for any city in the country so far.
A latest report by Anarock, NCR has been seeing a progressive decline in the unsold inventory from approximately 200,000 units as at end Q1 (calendar year) 2018 to approximately 86,420 units as at end Q1 (calendar year) 2024. In the corresponding period, Bengaluru/Hyderabad/Chennai — the three main southern cities — saw their unsold stock reduce from over 1.96 lakh units in Q1 2018 to over 1.76 lakh units in Q1 ‘2024.
Gurgaon now tops the list with a total unsold stock of 33,326 units – however down by 37% over the past five years- followed by Greater Noida where as many as 18,668 units remained unsold at Q1-end.
S.K Narvar, Group Chairman, Trident Realty says- “The Delhi NCR real estate market has undergone a tremendous transformation, with a 57% decrease in homes that were unsold over the past five years. This decline displays a positive change in the real estate landscape in the area, showing improved market stability and a more stable supply-demand situation. The city’s strategic way of handling new supply additions has played an important role in this transformation leading to a restored buyer confidence and a healthier market atmosphere. The resolve of developers in managing new supply additions, together with regulatory actions such as RERA and GST, have played a part in this optimistic tendency. The reduction in unsold inventory indicates strong demand, modern living preferences, and a hopeful future for the real estate sector in Delhi NCR
However, the supplies of Greater Noida have decreased by a much higher percentage of 70% since Q1 2018.
Overall unsold housing inventory fell in Ghaziabad to 11,011 units in Q1 2024 from 37,005 in Q1 2018, which is a 70% reduction in five-year inventory.
By end of Q1 2024, Noida had a total of 7,451 unsold units, which was down by 71% from the same quarter of 2018 and stood at 25,669 units.
Mr. Pradeep Aggarwal, Founder and Chairman, Signature Global (India) Ltd. said, “Delhi-NCR’s unsold inventory has declined by 57%, from approximately 200,000 units at the end of Q1 2018 to about 86,420 units by the end of Q1 2024, with Gurugram making a major contribution to this positive trend. This will significantly boost the real estate market in the NCR by increasing buyer confidence and enhancing market stability. Key factors contributing to this decrease include extensive economic growth, which boosts purchasing power, and extensive infrastructure development, particularly the expansion of metro lines and expressways such as the Dwarka Expressway, Southern Peripheral Road, Sohna Elevated Road, Delhi-Mumbai Industrial Corridor, and upcoming metro lines. Proactive government policies and regulatory reforms like RERA increases transparency in the real estate sector. Improved connectivity through these expanded transport networks makes distant areas more attractive, reducing unsold inventory stocks. This positive outlook is expected to spur new premium and mid-housing residential projects, catering to discerning buyers and investors.””
Overall, the top three Southern cities of Bengaluru, Hyderabad, and Chennai made a cut behind by 11% in terms of unabsorbed stock. In the western region both MMR and Pune together have been able to slash their unsold inventories by 8%. On the east side of the country, Kolkata represented one of the cities that showed a significant reduction in the level of unsold inventory with 41 percent during the stated period.
Ashish Sharma, AVP Operations, Brahma Group, said, ” The real estate market of Delhi NCR has evolved significantly, resulting in a remarkable decline of approximately 57% of unsold residential properties in the last five years thus underlining the dynamism of the sector. Moreover, NCR’s unsold stock declined from approximately 2 lakh units at Q1 2018-end to 86,420 units by Q1 2024-end. Among other factors, reduction of new supply on the market by developers with regulations like RERA and GST has brought buyers back to the market. In addition, this positive trend will drive residential launches including luxury projects as NCR continues to witness increasing needs for modern, luxurious and integrated habitation spaces. It is a reflection of the industry’s ability to adapt to changing market dynamics as well as meet rising aspirations of discerning investors and buyers considering NCR’s transformation process.”
One of the reasons that South India has been able to report a relatively low decline of unsold inventory is the fact that new supply has come in at a fast pace, especially in Hyderabad where new supply over the past two years has been exceptionally high.
In conclusion, NCR real estate market has shown a remarkable shift with a decline in collectively accumulated unsold housing inventory to 57 percent within the last five consecutive financial years. These reasons indicate that the development of city’s economic growth, infrastructure, and governmental policies are parts of the key factors that contribute to this highly significant decrease. Consequently, Gurugram has become one of the primary markets in India’s real estate market which has now developed a population that includes investors as well as end users.