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By end of 2022, there are over 98,000 unsold properties in Delhi-NCR

2023-01-03

According to PropTiger.com, it will take builders around five years to sell all 98,290 unsold housing units in the Delhi-NCR market at the present sales pace. PropTiger noted in its most recent report that unsold inventory increased 17% to 8,49,510 units across eight major cities in 2022. Out of these, there are over 8.5 lakh unsold stocks, of which 80% are under construction and 20% are finished and ready to move into. Delhi-NCR, the Mumbai Metropolitan Region (MMR), Kolkata, Chennai, Bengaluru, Hyderabad, Pune, and Ahmedabad are among these cities.

The inventory overhang, or the estimated time it would take builders to sell off the existing unsold stock based on the current sales velocity, has decreased to 33 months in 2022, as opposed to 42 months during 2021, the consultant said. This is due to an improvement in housing sales across 8 cities. According to PropTiger, Delhi NCR continues to have the biggest inventory overhang at 61 months, while Pune, Kolkata, and Chennai have the lowest inventory overhang at 26 months.

As sales velocity has remained low, the Delhi-NCR market has been dealing with this problem of unsold inventory for many years. As a result of numerous major developers, including Unitech, Amrapali, Jaypee Infratech, The 3C Company, and Ajnara Group, the NCR market is afflicted by the issue of stalled projects. While many builders are experiencing cash issues, several businesses have filed for bankruptcy and are now subject to insolvency processes. Home buyers are being more selective and choosing to buy from only reputable sellers.

According to data from PropTiger, Ahmedabad's unsold inventory increased by 8% to 68,450 units in 2022 over the previous year. Unsold inventory in Bengaluru was increased by 18% to 78,500 units. In Hyderabad, the unsold inventory increased 72% to 1,13,060 units in 2022. Unsold inventory climbed in 2022 in Pune by 11% to 1,32,330 units and in Mumbai by 22% to 3,04,770 units, the state's two largest real estate markets. The number of unsold units fell by 13% in Chennai to 30,940 units. 98,290 units were sold in Delhi NCR in 2022, a 4% decrease from the year before. During the 2022 calendar year, Kolkata also had a 10% decrease in unsold inventory year over year, down to 23,170 units.

A rapid surge in the amount of new supply was what caused the increase in unsold housing stocks. The number of new launches across the eight cities increased to 4,31,510 units in 2022, according to statistics from PropTiger. In these eight cities, housing sales increased by 50% from 2,05,940 units in 2021 to 3,08,940 units in 2022.