News: NCR will take over seven years to clear the current stock of unsold inventory : Report-14-01-2021
Synopsis
The research also points out that NCR has around 292 projects comprising approximately 190,110 units that are stuck or delayed as on 2020-end and worth over Rs 1,19,291 crore.
New Delhi: Real estate inventory overhang has almost doubled to 88 months in NCR in 2020, suggesting that the region will take over seven years to clear the current stock of unsold inventory, according to an analysis by property consultant Anarock. Inventory overhang is the number of months it will take to clear the present stock.
In 2019, inventory overhang in NCR was 45 months.
The research also points out that NCR has around 292 projects comprising approximately 190,110 units that are stuck or delayed as on 2020-end and worth over Rs 1,19,291 crore
These units were launched in 2013 or before and are presently in various stages of (non) completion. “Inventory overhang, which is directly linked to housing sales and also new supply, was bound to increase this year as an after-eect of Covid-19. Due to the pandemic, housing sales in NCR tanked by more than half in 2020 as against 2019, causing the inventory overhang to go up,” said Prashant Thakur, director and head-research, Anarock Property Consultants. Housing sales went down from 46,920 units in 2019 to 23,210 units in 2020. Moreover, NCR also added new supply of about 18,530 units in 2020, which inevitably also caused the inventory overhang to go up. Inventory overhang in Mumbai Metropolitan Region (MMR) went up to 55 months from 32 months, while in Bengaluru it rose to 29 months from 15 months and in Kolkata to 69 months from 39 months. As on 2019-end, there were 310 projects stuck in NCR comprising over 200,000 units. NCR saw completion of nearly 18 stuck/delayed projects with nearly 9,890 units in the one-year period. Of the total projects stuck (292 projects), 256 projects are in Greater Noida, Noida, Gurgaon and Ghaziabad alone while remaining cities—Delhi, Bhiwadi and Faridabad—together have just 36 stuck projects. In terms of units, out of the total 190,110 units, 94% are in Greater Noida, Noida, Gurgaon and Ghaziabad. Among the cities, Greater Noida saw maximum completions in terms of overall units. Nearly 3,940 units in over four projects were completed in 2020.
Currently, there are 110 projects comprising nearly 96,060 units worth Rs 38,394 crore that are stuck/delayed in Greater Noida as against 114 stuck projects with over 100,000 units in 2019 end.
