The real estate sector continued to face trouble in 2015 as demand remained muted.
The real estate sector continued to face trouble in 2015 as demand remained muted.
“The overall sentiment in the Delhi-National Capital Region remained subdued throughout the year with no growth in property prices,” according to 99acres’ Property Capsule of 2015. Despite low sales and dull market conditions, there are no signs of price correction, primarily due to rising construction costs.
It said that the sluggish pace of sales and growing volumes of unsold inventory forced developers to focus on completing pending projects rather than introducing new supply.
As a result, new launches in Delhi-NCR dipped by 30 to 35 per cent in the second half of the year. “Noida has around one lakh unsold housing units. At the current pace of sales, this would require 16 quarters or four years to clear,” said the report.
As far as Gurgaon is considered, high property prices continue to be the biggest obstacle for homebuyers.
Cushman & Wakefield (India) managing director Sanjay Dutt said that although end-user demand in the residential sector has remained fairly muted in 2015, reputed builders with good track record have seen good traction in their projects market.
“Overall, the next few years would see forging of some strategic partnerships with select developers, private equity investors also looking at liquidating assets. The consolidation through joint development activities would unlock development potential in major cities, going ahead,” said Mr Dutt.
