Unsold housing stock has been piling up in Gurgaon even as the total number of unsold units saw a consistent decline in the rest of NCR including Noida, Greater Noida and Ghaziabad over the last two years. A recent study has found that of the total 1.82 lakh unsold units in entire NCR market as on second quarter of this year, Gurgaon accounted for nearly 56,550 units (31 per cent share) of total unsold stock – the highest in the region.
It was followed closely by Greater Noida with 28 per cent share, Ghaziabad with 17 per cent share, Noida with 11 per cent, Delhi with 7 per cent and remaining 6 per cent in Bhiwadi and Faridabad.
However, in the last two years, Gurgaon added 10 per cent to its unsold stock rather than seeing a decrease. In Q2 2017, it had nearly 51,220 unsold units, which piled up further to stand at 56,550 units in Q2 2019, according to a report by Anarock Property Consultants.
According to Anarock data, the total value of the 56,550 units in Gurgaon was nearly Rs 80,570 crore while in Greater Noida, the value of 50,800 unsold units was roughly Rs 26,720 crore. Noida’s 20,860 unsold units were worth Rs 18,380 crore.
“This clearly indicates that the unsold properties in Gurgaon largely belong to the luxury segment against affordable properties in Greater Noida as the difference between unsold units is less in comparison to their overall value,” said Prashant Thakur, Director and Head of Research, Aanarock.
He also pointed out that while unsold stock in Gurgaon increased by 10 per cent over the last two years, Noida, in contrast, had 27,000 unsold homes in Q2 2017 which decreased to 20,860 units in Q2 2019 - an impressive 23 per cent reduction.
Similarly, in Greater Noida, unsold inventory decreased by 26 per cent between Q2 2017 and Q2 2019 - from 69,080 units to 50,810 units. Meanwhile, Ghaziabad saw its unsold stock decrease to 30,250 units in Q2 2019 – declining by 22 per cent in two years. Faridabad, having least unsold inventory in NCR (of 5,180 units) saw the stock fall by 27 per cent since Q2 2017 while Bhiwadi with current unsold inventory of 5,930 units saw a whopping 47 per cent decline during the last two years. Contrary to this, Delhi saw its unsold stock pile up to 12,340 units in Q2 2019, increasing by 4 per cent since Q2 2017.
“These are clear indicators that affordable markets are finding favour with buyers, which is in line with the fact that affordable housing is leading the pack across markets - most notably in NCR,” Thakur inferred.
In terms of prices, as per Anarock data, the average property prices in Gurgaon in Q2 2019 stood at Rs 6,100 per sq. ft. – reducing by 1 per cent in last two years whereas in markets like Ghaziabad, Noida and Greater Noida, average property prices rose by 3 per cent, 2 per cent and 2 per cent respectively.