According to PropTiger.com, the Delhi-NCR market has 98,290 unsold housing units at the end of the 2022 calendar year and it will take about five years for builders to sell this stock at the current sales velocity.
In its latest report, housing brokerage firm PropTiger mentioned that unsold inventory is set to increase by 17% to 8,49,510 units in 2022 across eight major cities.
Of these, around 8.5 lakh unsold stock, 80% units are under construction, while 20% homes are completed and ready-to-move-in.
These cities are Delhi-NCR, Mumbai Metropolitan Region (MMR), Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad.
With housing sales improving in 8 cities, the inventory overhang – the estimated time builders will take to sell existing unsold stock based on current sales velocity – has come down to 33 months in 2022, as against 42 months during 2021. the advisor said.
Prop Tiger said, “Pune, Kolkata and Chennai have the lowest inventory overhang of 26 months, while Delhi NCR has the highest inventory overhang of 61 months.”
The Delhi-NCR market has been facing the issue of unsold inventory for many years as the sales velocity has been low.
The NCR market has been plagued by stalled projects in the form of several big developers including Unitech, Amrapali, Jaypee Infratech, The 3C Company and Ajnara Group.
Several companies have gone bankrupt and are facing insolvency proceedings, while many builders are under liquidity stress.
Potential homebuyers have turned cautious and are opting to buy properties only from trusted players.
According to PropTiger data, the unsold inventory in Ahmedabad is set to increase by 8% to 68,450 units in 2022 as compared to the previous year.
Unsold stock in Bengaluru increased by 18% to 78,500 units.
Unsold inventory in Hyderabad to increase by 72% to 1,13,060 units during 2022.
Among Maharashtra’s two major property markets, unsold stock in Mumbai is set to rise by 22% to 3,04,770 units in 2022, while unsold inventory in Pune is set to rise by 11% to 1,32,330 units.
However, Chennai saw a decline of 13% in unsold inventory to 30,940 units. There is a decline of 4% in Delhi NCR to 98,290 units in 2022 as compared to last year.
Kolkata, too, saw a 10% year-on-year decline in unsold inventory to 23,170 units during the 2022 calendar year.
The increase in unsold housing stock was driven by a sharp increase in fresh supply.
According to PropTiger data, new launches are expected to double to 4,31,510 units in 2022 across eight cities.
Housing sales in these eight cities to increase by 50% to 3,08,940 units in 2022 as compared to 2,05,940 units in 2021.
In Delhi-NCR, the report includes data from Gurugram, Noida, Greater Noida, Ghaziabad and Faridabad. The constituencies in MMR include Mumbai, Navi Mumbai and Thane.