The National Capital Region (NCR) has witnessed a three- to five-per-cent decline in average per-square-foot property prices over the past one year (July-September 2017 from 2016), a report said on Tuesday. NCR, considered to be the largest real estate hub in the country, currently has around 200,000 unsold flats, with Greater Noida and Gurgaon accounting for more than half this inventory, a report said on Tuesday. According to private research agency, prices are likely to remain stagnant for a few more quarters. Reason behind price decrease in NCR According to private research agency Anarock Property, there are several reasons behind the decline in price in this market: * Excessive delay in project construction and possession has hurt buyers’ sentiments and led to subdued demand. * Many projects have been stalled due to agitations and litigation issues. * Demonetisation, RERA, and GST have played a significant role in reduced buyer sentiment, contributing to price fall. * Delay in execution and dilution of RERA has dampened buyers’ confidence. Greater Noida tops the chart with 61,784 unsold flats up to the third quarter, followed by Gurgaon that has 45,252 such properties. Noida, with 25,459 unsold apartment units, occupies the third place. Another 70,000 flats (approximately) are lying unsold in Delhi, Faridabad and Ghaziabad. South India's unsold property decreases By contrast, Hyderabad, Chennai and Bengaluru have shown fastest recovery. The unsold residential property inventory has declined rapidly in South India as compared to other parts of the country.
According to the consultancy, the unsold inventory declined by 21 per cent, 20 per cent and 15 per cent in Hyderabad, Chennai and Bengaluru, respectively, in July-September 2017 from 2016 year-end stock, the report said.With an overall unsold inventory decline of only 8 per cent in the top 7 cities, South Indian cities have surely bucked the trend. While 2017 supply was down by 59 per cent across the top 7 cities when compared to 2016 additions, these South India cities registered an average decline of 75 per cent. These cities are likely to make a faster come-back in the residential segment as well, when compared to their counterparts in the West, North and East India. Reason According to Anuj Puri, chairperson, Anarock Property Consultants, one of the key reasons for this decline was the restricted supply of fresh projects in these cities. Developers achieved equilibrium in terms of restricting new launches and focusing on clearing unsold stock 350,000 flats unsold in Mumbai metropolitan region Earlier this month, global property consultant Cushman & Wakefield and real estate data analytics firm Propstack reported that more than 350,000 homes were unsold in Mumbai metropolitan region out of the total 670,000 under-construction flats registered with the state real estate regulator till August. According to the report, as many as 6,70,339 units were registered under MahaRERA, of which 52 per cent (3,50,713 units) were unsold and 48 per cent (3,19,626 units) were sold. The maximum inventories are in 1- and 2-BHK configurations totaling 5,87,500 units. In sales, configurations of one and two bedrooms were the most sold and contributed over 85 per cent of total sales. "With over 50 per cent of the current residential inventory remaining unsold, the prices of projects have been largely stable even as the momentum in launches of new projects has been slow in MMR region," the report said. Even while the capital values of affordable homes across most micro markets have not seen any drastic changes, the report said that rates are higher by 10-15 per cent when compared to other cities like Bengaluru, Delhi NCR and Pune for comparable projects and locations.