The first six months of 2016 has came to an end for real estate industry and a survey has revealed that the number of new residential launches have recorded a three year low of 9 percent across eight major real estate markets of India. Inventory pile up has been worrying a lot for developers and the decrease can be evaluated that developers have become cautious over the bottleneck of unsold inventory.
Meantime, in terms of sales volume, India’s eight major cities have recorded a positive growth of 7 percent in the first two quarters. It seems like the reforms and proactive measures like implementing Real Estate Regulatory Bill, repo rate cuts and fair monsoons has been attracting considerable home buyers to real estate and the sector is undergoing revival after years of slowdown.
With new launches have considerably dried up and the sales picking up, the worry over the problem of unsold inventories has reasonably coming down. According to the survey, Delhi-NCR has recorded a sales consumption of 23,092 in the first half of 2016 from 25,000 units a year ago. New launches have significantly fall down to 17,462 from 29,458 units under the review period.
Considering that the unwinding of the unsold inventory seems to be happening reasonably fast, it is indeed something to be significant for Delhi-NCR, which has presently estimated to have 2 Lakh unsold units. While the prices remained almost stable across all other major cities, Delhi-NCR, on contrary, experienced a price reduction. Developers have reduced their property prices and have corrected it to the price range which prevailed three years ago. So arguably it is also the right time for property buying in Delhi-NCR.