The Delhi-NCR market has 98,290 unsold housing units at the end of 2022 calendar year and it will take around five years for builders to sell these stocks at current sales velocity, according to PropTiger.com.
In its latest report, housing brokerage firm PropTiger has mentioned that unsold inventory rose 17% in 2022 to 8,49,510 units across eight major cities.
Out of these, nearly 8.5 lakh unsold stocks, 80% units are under construction, while 20% homes are completed and ready-to-move-in.
These cities are -- Delhi-NCR, Mumbai Metropolitan Region (MMR), Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad.
With improvement in housing sales across 8 cities, the inventory overhang -- the estimated time builders would take to sell off the existing unsold stock based on the current sales velocity -- has declined to 33 months in 2022, as compared to 42 months during 2021, the consultant said.
"Pune, Kolkata and Chennai have the lowest inventory overhang of 26 months, whereas, Delhi NCR continues to have the highest inventory overhang of 61 months," PropTiger said.
The Delhi-NCR market has been facing this issue of unsold inventories for many years as sales velocity has remained subdued.
The NCR market is plagued with the problem of stalled projects as many big developers including Unitech, Amrapali, Jaypee Infratech, The 3C Company and Ajnara Group.
Many companies have become bankrupt and facing insolvency proceedings, while many builders are under liquidity stress.
Prospective homebuyers have become cautious and are opting to buy properties from only credible players.
As per PropTiger data, the unsold inventory in Ahmedabad rose 8% to 68,450 units in 2022 compared with the previous year.
In Bengaluru, the unsold stock went up 18% to 78,500 units.
The unsold inventory in Hyderabad surged 72% to 1,13,060 units during 2022.
In two major property markets of Maharashtra, the unsold stocks in Mumbai rose 22% to 3,04,770 units in 2022, while unsold inventory in Pune increased 11% to 1,32,330 units.
However, Chennai saw a 13% decline in unsold inventory to 30,940 units. Delhi NCR saw a 4% decline to 98,290 units in 2022, as compared to the previous year.
Kolkata, too, witnessed a 10% year-on-year fall in unsold inventory to 23,170 units during the 2022 calendar year.
Increase in unsold housing stocks was driven by a sharp rise in fresh supply.
According to PropTiger data the new launches doubled in 2022 to 4,31,510 units across the eight cities.
Housing sales rose 50% to 3,08,940 units in 2022 as compared to 2,05,940 units in 2021 across these eight cities.
In Delhi-NCR, the report covers data of Gurugram, Noida, Greater Noida, Ghaziabad and Faridabad. In the MMR, the consultant includes Mumbai, Navi Mumbai and Thane.
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