The Delhi-National Capital Region (NCR) residential market seems to be going slow on new launches, with the segment witnessing a 31 per cent dip compared with the second half of fiscal 2012-13.
A report by property portal Knight Frank India says developers are struggling with liquidity crunch due to project delays, while consumer confidence is marred due to higher interest rates, inflation and the current economic outlook.
The report says that nearly 33,500 residential units were launched in the second half of FY13, showing a dip of almost 31 per cent compared with the same period a year ago. However, there was a 6 per cent increase in project launches.
Greater Noida recorded a 40 per cent increase in project launches over the second half of FY12, clearly showing that the developers were concentrating on the affordable segment.
Incidentally, Greater Noida witnessed the highest number of launches in the second half of FY13, taking up about 50 per cent of the total pie. Most of the project launches were in the price range of Rs 2,900-3,500 per sq ft. Gurgaon followed suit in the second place.
The NCR residential market has an estimated 1.4 lakh units of unsold inventory, which is approximately 27 per cent of the units under construction.
Nearly 5.2 lakh residential units are under various stages of construction in the NCR market. Almost 50 per cent of this is expected to be ready for possession by the end of 2014. At least 58 per cent of the under construction units fall in Noida and Greater Noida, followed by Gurgaon, which constitutes nearly 24 per cent of the under construction units. About 66 per cent of the unsold units are concentrated in Noida and Greater Noida, due to the start of a number of large projects here.
The NCR residential market observed total absorption of 33,200 units in second half of the current fiscal showing a dip of about 12 per cent, compared with the same period a year ago. Greater Noida is the only micro-market that has shown an upward trend in sales, primarily due to a number of project launches in the affordable range. While Faridabad is the only market to have shown stable demand compared with H2 FY13. Nearly 65 per cent of the absorption has been in the affordable and mid-segment housing.