Connect with us

Guest Column

Unsold Inventory Highest in NCR, Lowest in Hyderabad, Chennai and Bengaluru

Anuj Puri

Anuj Puri, Chairman – ANAROCK Property Consultants

NCR has witnessed a 3-5% decrease in average per-square-foot property prices over the last one year (Q4 2016 – Q3 2017). See chart below:


Currently, NCR has the maximum number of unsold units among all the top cities in India. An approximate 2 lakh unsold units are stocked up across different cities in the region. Greater Noida has maximum share of unsold inventory, followed by Gurugram.

There are many reasons for the price decrease in NCR. To begin with, excessive delay in project construction and possession has hurt buyers’ sentiments and led to subdued demand. Also, many projects have been stalled due to agitations and litigation issues. The massive unsold inventory itself has acted as a sentiment suppressant – and finally, while demonetization, RERA and GST are potentially positive moves for the industry, they have played a significant role in reduced buyer sentiment, contributing to the price falls.


Prices are likely to remain stagnant for a few more quarters. Factors such as the huge unsold inventory, recent cases of developers’ bankruptcy or insolvency and the huge number of stalled projects have made buyers skeptical about the market. Also, delay in execution and dilution of RERA have acted as dampeners for buyers’ confidence. Prices are unlikely to rise near term.

In South India, Hyderabad, Chennai and Bengaluru show the fastest recovery

By contrast, the unsold residential property inventory has declined rapidly in South India as compared to other parts of the country. ANAROCK’s Q3 2017 research findings indicated that unsold inventory declined by 21%, 20% and 15% in Hyderabad, Chennai and Bengaluru respectively from 2016 year-end stock.

With an overall unsold inventory decline of only 8% in the top 7 cities, South Indian cities have surely bucked the trend. While 2017 YTD supply was down by 59% across the top 7 cities when compared to 2016 additions, these South India cities registered an average decline of 75%.

One of the key reasons for this decline was the restricted supply of fresh projects in these cities. The fine equilibrium that developers have achieved in terms of restricting new launches and focusing on clearing unsold stock in the predominantly end-user driven markets has been a defining factor in South India. With fundamental growth drivers intact and rising demand for office spaces, these cities are likely to make a faster come-back in the residential segment as well, when compared to their counterparts in the West, North and East India.


Latest News

News2 days ago

Central Park’s Bignonia Towers in Sohna Achieves Rs 500cr Sales Bookings 

New Delhi, 14th June 2024: Bignonia Towers by Central Park in in Sohna has recorded sales bookings of Rs 500...

News2 days ago

Author Ashwinder R. Singh Launches His Third Book, “Master Commercial Real Estate”

June 14, 2024: Ashwinder R. Singh, acclaimed for his insightful contributions to real estate, launched his third book, “Master Commercial...

News2 days ago

Grade A Office Spaces Demand Growing at a Brisk pace, 164.3 Mn Sq Ft Added Since 2021

June 14, 2024: India’s office market is undergoing a profound transformation, reflecting the country’s robust economic growth, demographic advantages, and...

News2 days ago

Real Estate Sector Needs to Gear Up for New Housing Challenges Until 2029, With Rain Harvesting as a Core Element for Housing Projects: HUA Additional Secretary

New Delhi, June 14, 2024: Additional Secretary of the Ministry of Housing and Urban Affairs, D Thara, on Friday asked...

News3 days ago

Tier-2 Cities Closing the Gap with Top-8 as Property Prices Surge by 10-15% in Prime Areas: Report

New Delhi, June 13, 2024: has released its inaugural “The Bharat in India” report on Thursday. The report unveils...

News3 days ago

Housing Prices Soar 13% CAGR as Inflation Moderates to 5.4%: ANAROCK Report 

Mumbai, June 13, 2024: Inflation, the gradual increase in the general prices of goods and services, erodes the purchasing power of money...