Record Reduction - NCR Real Estate Market Reduces Unsold Inventory by 57% in Five Years

New Delhi: The residential real estate market in the National Capital Region (NCR) has witnessed a remarkable reduction in unsold housing inventory, dropping by 57% over the past five years. This significant decline is the steepest in the country, with unsold stock falling from approximately 200,000 units at the end of Q1 2018 to 86,420 units by the end of Q1 2024.

Controlled Supply and Strategic Growth

According to Santhosh Kumar, vice-chairman of Anarock Group, the key to NCR's success has been developers' commitment to controlling new supply additions. Between Q1 2018 and Q1 2024, NCR saw a total new supply of 181,000 units. In contrast, the southern and western markets experienced much higher new supply additions, with approximately 607,000 units and 842,000 units, respectively.

Buyer Confidence &Impact of Regulatory Reforms

The resurgence in NCR’s real estate market is also attributed to renewed buyer confidence. This revival is driven by regulatory reforms such as RERA, GST, and the intervention of Alternative Investment Funds (AIFs) like the SWAMIH fund. These factors have encouraged more leading and listed developers to increase their supply in the region.

Gurugram and Greater Noida real estate insights

Gurugram boasts the largest stock with 33,326 units, marking a 37% reduction over five years.

Greater Noida follows with 18,668 unsold units as of Q1 2024, a staggering 70% decrease since Q1 2018.

Ghaziabad has also made significant strides, reducing its unsold stock from 37,005 units in Q1 2018 to 11,011 units in Q1 2024—a massive 70% decline.

Supply and Demand Equilibrium

The high unsold inventory post-pandemic played a crucial role in stabilizing the market. The growing demand for premium and luxury properties, coupled with new project launches, has maintained a healthy balance between supply and demand. This equilibrium has kept unsold stock at manageable levels, ensuring the market's continued growth.

Sustained Market Health

NCR's real estate market has demonstrated resilience and strategic growth, significantly reducing unsold inventory and instilling confidence among buyers and developers alike. This trend underscores the region's potential for continued prosperity in the real estate sector.