by THO
Delhi-NCR, once notorious for speculation-driven housing oversupply and all-round market disarray, is in significantly better shape than the other regions. Delhi-NCR’s unsold inventory has declined by more than half in the last five years, data shared by ANAROCK has said.
The top Southern markets – Bengaluru, Hyderabad, and Chennai – saw their collective unsold stock shrink by 11% in this period. MMR and Pune in the West saw their cumulative unsold stock reduce by 8%. In the East, Kolkata saw its unsold inventory decline by an impressive 41% in the period, the data showed.
NCR’s unsold stock declined by 57% from approximately 2 lakh units at Q1 2018-end to approximately 86,420 units by Q1 2024-end. In the same period, the main southern cities saw their unsold stock decline from over approx. 1.96 lakh units in Q1 2018 to over 1.76 lakh units in Q1 2024, data showed.
South India’s relatively low decline of unsold inventory is attributable to a massive new launch rate in Hyderabad, most notably over the last two years. The city saw its housing stock almost quadruple in the last 5 years. Bengaluru saw unsold inventory decline by 50% in this period.
In the West, MMR and Pune saw unsold stock decline by 8% in the last five years – from approximately 3.13 lakh units in Q1 2018 to approximately 2.90 lakh units in Q1 2024.
Delhi-NCR’s new housing supply under control
“What really worked for the NCR market was developers’ determination to keep new supply additions under control. ANAROCK data indicates that NCR witnessed total new supply of approximately 1.81 lakh units between Q1 2018 to Q1 2024. In contrast, the southern and western markets saw significantly higher new supply additions of approximately 6.07 lakh units and 8.42 lakh units respectively,” said Santhosh Kumar, Vice Chairman – ANAROCK Group.
“NCR’s upbeat performance also reflects renewed buyer confidence in the region,” he said, adding “RERA, GST and the intervention of AIFs like the SWAMIH fund have played a major role in this sentiment revival. As a result, more leading and listed players have increased supply in the region.”
Of the total unsold inventory in NCR, Gurugram currently has the maximum stock of approx. 33,326 units – a 37% decrease in the last five years. Greater Noida is next with approximately 18,668 units lying unsold as of Q1 2024-end. However, Greater Noida reduced its stock by a whopping 70% since Q1 2018. Ghaziabad saw its unsold stock decline to approximately 11,011 units in Q1 2024, from approximately 37,005 units in Q1 2018 – a massive 70% five-year decline.
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Noida had approximately 7,451 unsold units by Q1 2024-end, against 25,669 units in the same quarter of 2018 – thus declining by 71%. Delhi, Faridabad and Bhiwadi together had approximately 15,964 unsold units as on Q1 2024-end, from approximately 23,038 units at Q1 2018-end – a 31% decrease, the data showed.
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“The significant reduction in unsold inventory, particularly in Delhi NCR, indicates strong demand in recent years. The high demand for housing is driven by those seeking a modern, luxurious, and integrated lifestyle. This positive outlook is expected to result in a surge of new residential projects, especially in the luxury segment, catering to the growing number of discerning buyers and investors,” said Mohit Jain, Managing Director, Krisumi Corporation.
