Homebuyers in the Delhi NCR region are currently reaping the benefits of a market upswing, as the area has experienced a striking 57% decrease in unsold properties over the last five years, marking the most significant reduction of any city across the country.
According to a recent report by Anarock, the unsold homes in NCR have consistently dwindled from approximately 200,000 units at the close of the first quarter of 2018 down to around 86,420 units by the end of the first quarter of 2024. Meanwhile, major southern cities including Bengaluru, Hyderabad, and Chennai have also seen their unsold housing inventory shrink from over 196,000 units in Q1 2018 to more than 176,000 units in Q1 2024.
Among these changes, Gurgaon now takes the lead with an unsold stock totaling 33,326 units, which is a 37% decrease over the past five years, while Greater Noida follows with as many as 18,668 units at the same time frame.
Pradeep Aggarwal, founder and chairman of Signature Global (India), highlighted that the unsold inventory in Delhi-NCR has plummeted by this noteworthy 57%, falling from an approximate 200,000 units at the close of Q1 2018 to about 86,420 units by the end of Q1 2024, with Gurugram playing a significant role in this positive trend. This downward trend enhances buyer confidence within the NCR real estate market, fostering improved market stability. Factors contributing to this decrease include substantial economic growth that enhances purchasing power, along with considerable infrastructure advancements, particularly the expansions of metro lines and expressways such as the Dwarka Expressway, Southern Peripheral Road, Sohna Elevated Road, and the Delhi-Mumbai Industrial Corridor, alongside forthcoming metro lines. Additionally, proactive government policies and regulatory frameworks like RERA enhance transparency within the real estate sector. The improvement in connectivity via expanded transportation networks makes more remote areas increasingly appealing, which contributes to the lower unsold inventory levels. This optimistic forecast is anticipated to stimulate the emergence of new premium and mid-range residential projects targeting discerning consumers and investors.
However, it is worth noting that Greater Noida's available properties have dropped by a significantly higher percentage of 70% since Q1 2018.
As for Ghaziabad, the overall unsold housing inventory has seen a decline to 11,011 units in Q1 2024, down from 37,005 in the first quarter of 2018, representing a large 70% reduction over the five-year period.
In Noida, unsold units stood at 7,451 as of the end of Q1 2024, a 71% decrease from 25,669 units recorded in the same quarter of 2018.
S.K. Narvar, chairman of Trident Realty, stated, "The Delhi-NCR real estate market has undergone a tremendous transformation, with a 57% decrease in unsold homes over the last five years. This decline reflects a positive change in the local real estate landscape, indicating improved market stability and a more stable supply-demand situation. The city’s strategic approach to new supply additions has played a significant role in this transformation, resulting in restored buyer confidence and a healthier market environment. The determination of developers to manage new supply additions, combined with regulatory actions such as RERA and GST, have contributed to this optimistic trend. The decrease in unsold inventory indicates strong demand, modern living preferences, and a bright future for the real estate sector in Delhi NCR."
Overall, the top three southern cities—Bengaluru, Hyderabad, and Chennai—lagged behind by 11% in unabsorbed stock. Inventory also decreased by 8% in the MMR and Pune regions to the west. Furthermore, during this review period, Kolkata, located on the East Coast, showed a notable decline in unsold inventory, dropping by 41%.
Ashish Sharma, AVP of Operations at Brahma Group, remarked, "The real estate market in Delhi NCR has evolved significantly, resulting in a remarkable decline of approximately 57% of unsold residential properties in the last five years, highlighting the sector’s dynamism. Furthermore, NCR’s unsold stock fell from about 2 lakh units at the end of the first quarter of 2018 to 86,420 units by the end of Q1 2024. Additionally, regulations like RERA and GST have reduced the new supply developers offer in bringing buyers back into the market. Furthermore, this positive trend will drive residential launches, including luxury projects, as the NCR’s demand for modern, luxurious, and integrated habitation spaces grows. It reflects the industry’s ability to adapt to changing market dynamics while meeting the rising expectations of discerning investors and buyers considering NCR’s transformation process."
One contributing factor to the relatively low decline in unsold inventory in South India has been the rapid delivery of supply, especially in Hyderabad, where the pace of new supply has surged over the last two years.
In conclusion, the NCR real estate landscape has experienced a dramatic shift, with a collective 57% decrease in unsold housing inventory over the last five fiscal years. The enticing combination of economic growth, infrastructural improvements, and favorable government policies appears to be pivotal in driving this remarkable trend. Consequently, Gurugram has arisen as a focal point within India's real estate realm, magnetizing both investors and end-users alike.