Delhi NCR Witness A Drop In The Sales Of Residential Real Estate PropertiesSamar Javed26 November 2018
Residential property’s sale increased in eight metropolitan cities,but it dropped in the capital city of the country that is Delhi NCR.
Since the real estate properties are not selling well in Delhi NCR especially the residential ones, it is tough for the property builders to believe that this sector has been recovering. Though the sales have increased by a margin in other metro cities in Delhi NCR, still the sales are quite low. As per the LiasesForas report of Residential Real Estate Market, which came out for the quarter of July-September, the sale of the residential properties increased by 1% in the other eight metro cities whereas NCR sales dropped by 12% on a quarter to quarter basis while Pune’s sale dropped by 1%.
This firm is a research and rating firms in Mumbai who works in the real estate segment. The report takes into account eight cities which are Kolkata, Pune, Chennai, MMR or Mumbai Metropolitan cities, Ahmedabad, Hyderabad, Bengaluru, and NCR. During this quarter as per the report, the percentage of new project launches also dropped by 16%. Even when there is no new project launch, the unsold properties count did not decrease much as mentioned above. On a quarter to quarter basis, the inventory increased marginally whereas on Year on Year basis it increases by 1%. Kolkata tops on the list of selling unsold properties on year on year basis and the percentage of the sale of unsold properties is 28%. Hyderabad comes second on the list which witnessed 25% sale of unsold properties and Chennai witnessed 15% on YOY measures. On a quarter to quarter basis, Hyderabad tops the list of sale of unsold properties which is 5% in between the first and second quarter of 2018-19.
The report also mentioned that the prices of the properties are not going to increase but can drop a little. On weighted average method, the prices are same on a yearly basis whereas dipped on a quarterly basis by 1%.
NCR real estate market overview has been portrayed by the report of Anarock Property Consultant for the same quarter. The report shows negative signs for the NCR real estate market’s residential segment. It mentioned in the report that Delhi’s real estate market is one of the most affected cities when it comes to the slowdown in the market. They also pointed out the reason for this which are the changes in RERA, Demo, and GST. It also compared the market with Bengaluru’s market and MMR’s market where the sales are peaking up,and Delhi’s market is far away from the same.
In NCR, there are many other reasons apart from the ones mentioned above responsible for the slowdown of the realty market in the city. According to the Anarock’s report, the changing norms and regulations, money laundering in the market or using one project’s money into another and even modifying details of the projects to pass the regulatory clearance have affected the market as a whole. There are other reasons like the crisis of water and sand in the city and bureaucratic issues also adds on to the same.
Almost 2 lacs units are stuck under the construction phase due to various legal issues which were launched 5-6 years back in 2013 and before than that. The projects are stuck at different stages,and out of this total number, one lac thirty thousand units are in Greater Noida and Noida city area which is almost sixty-five percent of the entire stock of the realty project in the city.
If you are looking for buying residential property in Delhi for your own use, then this is a good time to get a good deal on the properties but you need to make sure, there are no issues with the property. Make sure you buy the right property at the right price.
(Source- Livemint) (Image Source- Livemint)