A survey of 120 real estate builders by the industry body Assocham has revealed that 1.70 lakh flats in Delhi, Gurgaon and Noida were lying unsold despite the property prices having declined sharply over the last one year,
The slump in property market, experts say, is the highest among other cities across India.
The survey said, “The National Capital Region (NCR) residential market is stuck with an estimated inventory of 1,70,000 units while another 90,000 dwelling units under-construction are likely to be delayed for hand-over.”
The survey added that the real estate market had failed to pick up despite the prices going down by at least 30 over the last one year.
It said, “Prices of 3-bedroom, 2 BHK and single room flats have seen correction by 30% in Noida, 25% in Gurgaon and 15% in some key areas of Delhi but still, the demand stays subdued.”
A prominent builder in Noida told jantakareporter.com that the industry was hoping the property market will experience phenomenal growth under Narendra Modi, but it turned out to be ‘quite opposite.”
” There’s clearly no achche din for us. The business prospect is frightening and it will have monumental effect on us if there’s no improvement urgently. It’s quite frightening how suddenly people have run of money to invest in properties despite the pricing coming down significantly.”
Assocham secretary general DS Rawat said,”The sentiment in the housing market is really at a low key. Even though there are signs of macroeconomic improvement, it would be a quite a lag before it gets reflected on the real estate markets.”
Majority of real estate developers, who took part in the survey said the problem had been compounded by delay in regulatory clearances and ongoing litigations adding that the 60% of the unsold real estate in the NCR region was in areas that was currently uninhabitable.