Delhi-NCR developers remained cautious and restricted new supply despite robust sales as unsold stock in the region declined 16 percent year on year to 1,41,240 units as of the end of second quarter this year, Anarock Research said.
Merely 4,070 units were launched in Delhi-NCR in the second quarter.
As per Anarock data, overall new housing supply in Delhi-NCR declined 56 percent on a quarterly basis to nearly 4,070 units as of the second quarter.
NCR’s inventory overhang stood at 80 months as of the second quarter last year, which reduced to 27 months in the quarter under review. Since the first quarter of 2015, the second quarter this year has seen the lowest inventory overhang in Delhi-NCR, indicating a very favourable residential market scenario in a very long time, it noted.
“Inventory overhang basically reflects the sales velocity at a given time,” says Prashant Thakur, senior director and head – research, Anarock Group.
“Inventory measured in months indicates the number of months it will take for the current unsold housing stock on the market to sell at the current absorption rate,” he said.
With remarkable restraint in this previously highly speculative market which saw an unrealistically high number of projects launched in earlier years, developers in Delhi-NCR have restricted their new supply despite robust sales.
Of the total unsold inventory in NCR, Gurugram currently has the utmost stock of around 59,120 units, which decreased by 7% on quarterly basis. Greater Noida has more than 28,875 unsold units as of the end of second quarter this year, and reduced its stock by 8% on a quarterly basis, it said.
Ghaziabad saw its unsold stock 5% sequential decline to 17,990 units in the second quarter this year. Noida had approximately 12,150 units of unsold stock by the end of the quarter in review, a sequential decline of 12%, the report said.
Delhi, Faridabad and Bhiwadi together had approximately 23,100 unsold units by the end of the second quarter this year – a 6% sequential decline.
Sales in NCR decline
As for sales in Delhi-NCR, approximately 15,340 homes were sold in NCR in Q2 2022 – the second-highest after MMR. On a quarterly basis, sales decreased by 19% in Q1 2022, approximately 18,835 units were sold across NCR.
In Gurugram, housing sales decreased by 14% on a quarterly basis – from approximately 8,850 units in Q1 2022 to approximately 7,580 units in Q2 2022.
Noida saw approximately 1,650 units sold in Q2 2022, as against 2,045 units in the preceding quarter – a fall of 19%, the research said.
Greater Noida saw sales decrease by 20% on a quarterly basis. A total of 3,450 units were sold in Q1 2022, and 2,750 units in Q2 2022. Ghaziabad, which saw 2,080 units sold in Q1 2022 and 1,650 units in Q2 2022, saw a quarterly decrease of 21%. Faridabad, Bhiwadi and Delhi collectively saw 1,710 units sold in Q2 2022, against 2,410 units in Q1 2022 – declining by 29%, it said.
As for launches, Gurugram saw most launches at 2,830 new units in Q2 2022, comprising a 70% share of the total new launches in entire NCR. On a quarterly basis, Gurugram saw a decline of 64% in new supply – from 7,890 units in Q1 2022 to 2,830 units in Q2 2022.
Noida saw no new supply in Q2 2022, while Greater Noida saw just 390 new units launched in Q2 2022. Developers are consciously restricting new supply into these two markets. Ghaziabad saw approximately 740 new units launched in Q2 2022. In preceding quarter of 2022, the city saw new supply of 220 units.
Faridabad, Delhi and Bhiwadi together saw just 110 new units launched in Q2 2022, in sharp contrast to 920 units launched in the first quarter of 2022, it said.
