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NCR’s unsold stock declined from approximately 2 lakh units at Q1 2018-end to 86,420 units by Q1 2024-end. In the same period, the main southern cities Bengaluru, Hyderabad & Chennai saw their unsold stock decline from over 1.96 lakh units in Q1 2018 to over 1.76 lakh units in Q1 2024.
"What really worked for NCR market was developers’ determination to keep new supply addition under control,” said Santhosh Kumar, vice chairman, Anarock group.
NCR witnessed total new supply of 1.81 lakh units between Q1 2018 to Q1 2024. In contrast, the southern and western markets saw significantly higher new supply additions of approx. 6.07 lakh units and 8.42 lakh units respectively."
“NCR's upbeat performance also reflects renewed buyer confidence in the region. 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,” Kumar said.
Gurgaon currently has the maximum stock of 33,326 units - a 37% decrease in the last five years while Greater Noida is next with 18,668 units lying unsold as of Q1 2024-end.
“One of the factors that boosted the real estate sector immediately after the pandemic was the high unsold inventory ensuring any lack of supply-side constraints. The growing apetite for premium and luxury properties as well as new project launches have kept supply and demand evenly matched and unsold stock at healthy levels,” said Amit Modi, Director, County Group.
However, Greater Noida reduced its stock by a whopping 70% since Q1 2018.
Ghaziabad saw its unsold stock decline to 11,011 units in Q1 2024, from 37,005 units in Q1 2018 - a massive 70% 5-year decline.
Noida had 7,451 unsold units by Q1 2024-end, against 25,669 units in same quarter of 2018 - thus declining by 71%.
“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. Looking ahead, the anticipated high demand, fueled by ongoing infrastructure development, will likely further reduce unsold properties,” said Mohit Jain, Managing Director, Krisumi Corporation.
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 41% in the period.
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 3.13 lakh units in Q1 2018 to 2.90 lakh units in Q1 2024.
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