Delhi and NCR has properties worth Rs.77,000 crores unsold as per a report by PropTiger.com. Home sales reduced drastically following government’s demonetization drive. Economic slowdown aggravated it further with home sales in October – December 2019 quarter declining by 38 per cent in Noida and 6 per cent in Gurugram year-on-year. New launches declined by a whopping 74 per cent in Gurugram and by 61 per cent in Noida as against a year ago.
The prolonged slowdown has resulted in real estate developers in NCR accumulating unsold stocks worth Rs.77,000 crores with developers in Gurugram and Noida having a combined stock of over one lakh unsold units at the end of 2019 as per Elara Technologies-owned real estate advisory portal.
Talking to media Dhruv Agarwala, Group CEO of PropTiger.com, said that project delays, big developers going insolvent, NBFC crisis and poor consumer sentiment impacted real estate adversely. He said that the Supreme Court judgements in Amrapali, Jaypee and Unitech cases may reduce negative sentiments in the market.
Real estate developers in Noida with an overhang of 52 months could take as much as four years and four months to sell their piled up stocks at current sales velocity. Developers in Gurugram with an overhang of 25 months may also take a very long time to sell their properties.
