The real estate market in the Delhi-NCR region is witnessing a significant boost as the second quarter of 2023 saw a remarkable 21% decrease in unsold housing stock. This drop in inventory is a result of the continuous upward momentum in residential property sales since the pandemic. According to ANAROCK Research data, this 21% decrease is the steepest fall in available stock among the top seven cities in the country.
A Shift in Residential Property Sales
At the end of the second quarter, the unsold housing stock in Delhi-NCR stood at approximately 1,10,990 units, compared to the stock of 1,41,250 unsold units during the same period last year. This decline in unsold stock is a clear indication of the positive growth in the real estate sector.
Segment-Wise Analysis
Analyzing different segments of the market, the data reveals interesting insights. The inventory of mid-segment homes, priced between Rs 40 lakh and Rs 80 lakh, recorded the highest yearly decline of 25%. The number of unsold units in this segment dropped from approximately 47,160 units at the end of Q2 2022 to approximately 35,450 units by the end of Q2 2023.
In the affordable housing category, unsold stock reduced by over 24% annually, from approximately 51,680 units in Q2 2022 to approximately 39,400 units in Q2 2023. Surprisingly, the new supply in this budget segment decreased by 19% annually, indicating that developers are clearing their previous stock with a moderated new supply pipeline.
Premium homes witnessed a significant 23% year-on-year decline in unsold stock. At the end of Q2 2022, approximately 22,940 units remained unsold. However, by the end of Q2 2023, this number had reduced to approximately 17,650 units. Similarly, luxury homes valued between Rs 1.5 crore and Rs 2.5 crore saw a 19% annual drop in unsold inventory, from approximately 11,920 units in Q2 2022 to approximately 9,610 units in Q2 2023.
However, the ultra-luxury homes segment, priced at Rs 2.5 crore and above, experienced an 18% annual increase in available inventory. The current stock of ultra-luxury housing in NCR stands at approximately 8,880 units, making it the lowest among all budget categories.
Regarding this trend, Santhosh Kumar, Vice Chairman of ANAROCK Group, stated, "The increasing influence of branded developers has significantly improved homebuyer confidence in Delhi-NCR. Previously, this market faced challenges due to excessive supply from unbranded players. However, today, despite healthy sales, branded developers are carefully managing the supply pipeline. Furthermore, when compared to Q2 2019-end, there has been an impressive 39% reduction in overall unsold housing stock in the entire NCR region."
City-wise Analysis of Unsold Stocks
In terms of city-wise analysis, Gurugram currently has the highest unsold stock of approximately 46,650 units, followed by Greater Noida with approximately 23,170 units. On the other hand, Noida has the lowest unsold stock, with approximately 8,440 units as of Q2 2023-end.
When considering yearly changes, Noida witnessed the most significant decline of 31%, followed by Ghaziabad (26%), Gurugram (21%), and Greater Noida (20%). Gurugram's decrease in ranking is due to the considerable addition of new supply in the last 1-2 years.
- Noida: Unsold stock decreased by 31% annually, from approximately 12,150 units in Q2 2022 to approximately 8,440 units in Q2 2023.
- Ghaziabad: Unsold stock decreased by 26% annually, from approximately 18,000 units in Q2 2022 to approximately 13,385 units in Q2 2023.
- Gurugram: Unsold stock decreased by 21%, from approximately 59,120 units in Q2 2022 to approximately 46,650 units in Q2 2023.
- Greater Noida: Unsold stock decreased by 20% annually, from approximately 28,870 units in Q2 2022 to approximately 23,170 units in Q2 2023.
- Faridabad, Delhi & Bhiwadi: Cumulative unsold stock decreased by 16% annually, from approximately 23,110 units in Q2 2022 to approximately 19,345 units in Q2 2023.
As the real estate market in Delhi-NCR continues to flourish, these statistics bode well for both homebuyers and developers. With a significant reduction in unsold housing stock, the region is likely to witness continued growth and a positive investment climate.
Caption: Delhi-NCR Real Estate Trends: Robust sales lead to 21% drop in unsold housing stock in Q2 2023