- Key cities of UP have collective total unsold stock of approx. 97,270 units as on Q3 2019 end; 1,31,150 units in Q3 2017 - total decline of 26%
- Greater Noida saw maximum stock reduction by 27% in Q3 2019 against Q3 2017; Noida and Ghaziabad each saw 24% decline during the period
- Faridabad saw a mere 4% decline; Gurugram & Delhi saw unsold stock increase by 7% & 20% respectively
- Deliberate reduction of new supply with less than 1,220 new units added in Q3 2017 in these 3 cities; approx. 1,610 units in Q3 2019
- Ghaziabad is NCR's new affordable housing hotspot; Noida & Greater Noida have maximum mid-segment housing
- Nearly 76% of total complaints (17,077) filed with UP RERA in these 3 key cities
LUCKNOW, India, Nov. 4, 2019 /PRNewswire/ -- The top 3 UP cities within NCR - Noida, Greater Noida and Ghaziabad - saw the maximum decline in overall unsold housing stock in two years in the state. A joint report by ANAROCK and NAREDCO - 'Addressing Challenges & Progressing Ahead in Real Estate' - released at the 1st National RERA Conclave in Lucknow today finds that the collective unsold stock in these cities of UP had declined by 26% - from 1,31,150 units in Q3 2017 to approx. 97,270 units by Q3 2019 end.
- Greater Noida saw the highest reduction of 27% in unsold stock in two years - from 66,570 units in Q3 2017 to 48,350 units in Q3 2019.
- Noida and Ghaziabad each reduced unsold stock by 24% in the same period; they now have 19,480 units and 29,440 unsold units respectively.
- Gurugram saw unsold housing inventory increase by approx. 7% and currently has the highest unsold stock in NCR - 55,900 unsold units (52,460 units in Q3 2017).
- Delhi's unsold stock increased by 20% in this period - from 10,770 units in Q3 2017 to 12,960 units in Q3 2019.
Remarking on the report, Anuj Puri, Chairman - ANAROCK Property Consultants, says, "Noida, Greater Noida and Ghaziabad succeeded in significantly reducing unsold stock primarily because of developers' conscious restriction of new supply in favour of ongoing project completion. While Gurugram alone saw more than 2,030 units launched in Q3 2019, these three key cities of UP collectively launched a mere 1,610 units. Two years ago, as well, the Millennium City saw new supply of 3,520 units while the other three cities launched just 1,220 units in the same quarter."
UP RERA Rewrites Rules, Clamps Down on Dilutions
The report underscores that while RERA policies have been diluted from the Central Act across states, the Uttar Pradesh government proactively revisited its RERA rules to eliminate dilutions and favour aggrieved homebuyers - particularly in Noida and Greater Noida, where several projects are either stuck or delayed.
Mr. Parveen Jain, Vice Chairman, NAREDCO says, "The Indian real estate sector continues to face challenges in terms of reduced construction finance and high levels of unsold inventory. However, a slew of reforms and measures introduced by the government in the past few years have started showing positive results. Recovery in sales can already be seen across micro-markets. Real estate regulation and other positive measures by the government have made the market more responsible towards deliveries. This especially reflects in the NCR market, where along with a decline in launches, developers are focused on completion of unsold inventory."
The new rules, which are expected to bring all ongoing projects for which completion certificates were not issued on or before 1st May 2016 under the purview of RERA, currently await the state government's approval. Nearly 76% of a total of 17,077 complaints filed with UP RERA till September 2019 relate to promoters and projects in Noida, Greater Noida and Ghaziabad. However, UP RERA has disposed of more cases (over 10,000) since its inception than any other state with active RERA rules in place.
The report also examines the overall macroeconomic environment in India - including FDI inflows, inflation and GDP growth rate - and the challenges the Indian residential real estate sector faces. The major bottlenecks are lack of funds, the fallout of over-dependence on NBFC/HFC funds, and unmitigated burden of delayed/stalled units and lack of interest of PE players towards the residential segment.
After analysing the most pressing issues, the report suggests short, mid and long-term solutions. For instance:
- The government can address the problem of stalled/delayed units by providing additional FSI to developers willing to execute such projects
- Another incentive for executing such projects could be to offer the land banks of defaulting developer at preferential rates
- Additional tax benefits and easy access to funding for developers who undertakes the completion of such projects can be considered
Other Major Report Highlights
- New Pan-India office supply likely to exceed 43 million sq. ft. in entire 2019, resulting in a yearly growth of 13% against 2018. Absorption of Grade A office stock likely to cross 37 mn sq. ft. in 2019, recording an increase of 11% against 2018 and reaching 2015 levels.
- India's organized retail to corner a 13% market share by 2020, potentially reaching a value of US$ 140-160 billion.
- Indian logistics and warehousing sector drew nearly US$ 1.1 billion of private equity investments between Q1 2017 - Q1 2019 (against zero investment in 2015 and 2016 combined)
Click here to download the report - https://bit.ly/2CiSSsl
ANAROCK is India's leading independent real estate services company with presence across India and the Middle East. The Chairman, Anuj Puri, is a highly respected industry veteran and India's most prominent real estate thought leader. The Company has diversified interests across the real estate value chain and deploys its proprietary technology platform to accelerate marketing and sales. ANAROCK's services include Residential Broking and Technology, Retail, Investment Banking, Hospitality (via HVS ANAROCK), Land Services, Warehousing and Logistics, Investment Management, Research and Strategic Consulting.
The Company has a unique business model, which is an amalgamation of traditional product sales supported by a modern technology platform with automated analytical and reporting tools. This offers timely solutions to its clients while delivering financially favourable and efficient results. ANAROCK has a team of over 1800 certified and experienced real estate professionals who operate across all major Indian and GCC markets. Within a period of two years, the Firm has successfully completed over 300 exclusive project mandates. ANAROCK also manages over 80,000 established channel partners to ensure global business coverage.
Our assurance of consistent ethical dealing with clients and partners reflects our motto - Values Over Value.
Please visit www.anarock.com
National Real Estate Development Council (NAREDCO) was established as an autonomous self-regulatory body in 1998 under the aegis of Ministry of Housing and Urban Affairs, Govt. of India. It is in this year that the Government of India redrafted the National Housing & Habitat Policy, giving due importance to the Housing and Real Estate sector, thereby declaring housing for all citizens by the year 2010. The Indian housing and real estate sectors and the allied industries hailed the establishment of NAREDCO, as the apex national body for the real estate industry and visualized it as a single platform where Government, industry and public would discuss various problems and opportunities face to face which would result in speedy resolution of issues. It was formed with the mandate to induce transparency and ethics in real estate business and transform the unorganized Indian real estate sector into a matured and globally competitive business sector.
The National Real Estate Development Council strives to be the collective force influencing and shaping the real estate industry. It seeks to be the leading advocate of developing standards for efficient, effective, and ethical real estate business practices, valued by all stakeholders of real estate sector and viewed by them as crucial to their success. NAREDCO works to create and sustain an environment conducive to the growth of real estate industry in India, partnering industry and government alike through advisory and consultative processes.
Please visit: www.naredco.in
Head - Media Relations
ANAROCK Property Consultants
SOURCE ANAROCK Property Consultants