At 1.5 lakh, NCR records maximum number of unsold flats

NEW DELHI At 1,50,700, the national capital region (NCR) has the highest number of unsold residential units among the leading cities in the country, reveals a survey conducted by real estate consultancy firm JLL. Overall, these cities, including NCR, Mumbai, Bengaluru, Chennai, Kolkata and Pune, have an inventory of around 4.40 lakh unsold units.
While Chennai is on the top of the completed unsold housing units with around 8,500 units (around 20%) out of 42,600 unsold units, in NCR, only 6% — around 9,000 units — of the unsold units are ready.

The unsold inventory of completed units is estimated at 35,000 units in the top cities. Ramesh Nair, CEO & country head of JLL India, said a significant volume of unsold inventory would ensure that the capital values across most markets would stay buyer-friendly to ensure sales velocity.

With a slowdown in project launches in most markets, more unsold units are likely to get absorbed in the next few quarters. As a trend, end-users have been more inclined to buy a unit as it reaches closer to the date of completion. This has also incentivised the developers to complete a project to improve cash flow.

However, there are fewer buyers for incomplete projects, creating a downward bias in most markets. “From the beginning of 2016, the sector has witnessed changes like RERA, Demonetisation and GST, which have also led to a general slowdown in overall construction activities,” Nair said. Demands, too, have become slow following these changes. “We expect sales velocity to start picking pace in the second half of the year mostly on account of stable prices, making entry attractive,” he added.

In NCR, Noida and Greater Noida together contributed nearly 60% (around 90,000 units) of the total unsold inventory, mostly in incomplete projects. The survey said most of the sales are happening closer to completion, leaving only a minimum percentage of completed unsold inventory at only 5,600 units, 6.5% of total unsold inventory in the twin cities.

Gurugram saw only limited unsold inventory — largely in incomplete projects at peripheral locations. At 850, less than 4% of the unsold units are ready.

In Greater Mumbai, Thane saw the lowest volume of unsold inventory with approximately 12,500 units — almost entirely under construction — and 163 in the completed category. Thane has been seeing strong traction among end-users due to high quality of construction, ease of commute and a general upgrade of social infrastructure which has been proportionate to the growth of the location, the report said.

Navi Mumbai, on the other hand, recorded over 24,000 unsold units, of which over 10% (2,650) are in the completed projects. Most of these projects are in the peripheral locations of Kharghar and Panvel, which are mostly investor-driven markets. Mumbai city has recorded close to 50,000 unsold units, mostly in the under-construction projects. Around 150 units are complete but unsold.

Bengaluru, which recorded nearly 70,000 unsold units, has seen an influx of new launches in 2017 backed by a strong and stable economic condition. Even then, 13% of its completed units remain unsold.