Delhi-NCR’s unsold homes decline rapidly post-pandemic

Nearly half a decade since the national capital region was labelled as the hub of unsold homes in the country, the region has recorded a rapid revival. As per latest data, unsold residential units in the Delhi-NCR market are falling at the fastest pace, in comparison to other regions of the country.

Over the last six years, between January-March 2018 quarter and January-March 2024, unsold units in the NCR market have fallen by 57 per cent, data from Anarock shows. While at the end of March 2018, some 200,476 unsold homes were there in the NCR market, by March 2024 the number had fallen to 86,420 units.

During the same period, unsold homes in the South India market (Bengaluru, Hyderabad & Chennai together) have fallen by 11 per cent - from 196,406 units to 175,520 units. 

The market in the west - comprising Mumbai Metro Region & Pune - was the largest for unsold homes. With a 8 per cent drop in the number of unsold units, it continues to host the most number of unsold homes. From 313,485 units in March 2018, the number has dropped to 289,677 units in March 2024.

According to analysts from Anarock, going by a region's prevailing unsold housing inventory as an indicator of its realty market's health, North India’s Delhi-NCR – once notorious for speculation-driven oversupply and all-round market disarray – is in significantly better shape than the other regions. 

"What really worked for the NCR market was developers’ determination to keep new supply additions under control. ANAROCK data indicates that NCR witnessed a total new supply of approx. 1.81 lakh units between Q1 2018 to Q1 2024. In contrast, the southern and western markets saw significantly higher new supply additions of approx. 6.07 lakh units and 8.42 lakh units respectively,” says Santhosh Kumar, Vice Chairman, Anarock Group. 

According to Mohit Jain, Managing Director, Krisumi Corporation, The significant reduction in unsold inventory, particularly in Delhi NCR, indicates strong demand in recent years. “The high demand for housing is driven by those seeking a modern, luxurious, and integrated lifestyle. This positive outlook is expected to result in a surge of new residential projects, especially in the luxury segment, catering to the growing number of discerning buyers and investors,” says Jain, adding that “Looking ahead, the anticipated high demand, fueled by ongoing infrastructure development, will likely further reduce unsold properties.”

Data from CREDAI-Colliers shows, in the past one year, fall in unsold homes has been the steepest in the Pune market. Of the eight major cities, Pune witnessed the steepest drop in unsold inventory levels. “The 10 per cent YoY decline in unsold units, highlights strong housing demand across the city. The reduction in unsold units coincides with a major 13 per cent annual rise in average housing prices,” it notes.

According to Kumar from Anarock, NCR's upbeat performance also reflects renewed buyer confidence in the region. “RERA, GST and the intervention of AIFs like the SWAMIH fund have played a major role in this sentiment revival. As a result, more leading and listed players have increased supply in the region,” he says.