The survey reveals that demand for buying property has decreased by over 30% over the last year.
Notwithstanding the 125 bps rate cut by RBI this year and offers made by developers, investment in the real estate market has remained lukewarm in and around Delhi-NCR primarily due to the lack of confidence in the economy and project delays, a survey has found.
The industry chamber had conducted a random survey of nearly 125 real estate developers in Delhi-NCR (National Capital Region). The survey reveals that demand for buying property has decreased by over 30% over the last year.
"The sentiment in the housing market is really at a low key. The prices have almost crashed but they are still unaffordable. Be it Rohini, Dwarka, South Delhi, Noida, Gurgaon, the prices of property are down by 25-30% as compared to the last two years," Assocham Secretary General D S Rawat said.
According to the survey, inordinate delays in getting necessary approvals from multiple authorities result in cost and time overruns. The resale or secondary market is also dull this festival season as there is very little resale happening especially in the NCR and surrounding areas.
Besides, the residential market has witnessed a steep decline by 25-30% in new launches as well as demand resulting a significant shrinkage. The unsold inventory pressure in NCR region is the highest among all other cities.
A majority of real estate developers in NCR said about 62% of the unsold real estate in the region is in areas which are currently uninhabitable. The problem has been confounded by delays in regulatory clearances and litigations.
The NCR residential market still has an estimated 1,70,000 units of unsold inventory which is approximately 30% of the units under construction, adds the survey. As per the survey, there are nearly 8.5 million workers engaged in building and other construction activities in India.
The ticket price 3-bedroom, 2 BHK and single room flats has seen correction by 30% in Noida, 25% in Gurgaon and 15% in some key areas of Delhi, yet the demand stays subdued, the survey pointed out.
Modular kitchen, LED televisions and air conditioners are among the most common freebies on offer this Diwali. Some developers offered hefty discounts to the basic sale price for early investors. Many others warned of sharp revision in property rates post Diwali. However, the lure of freebies failed to charm home buyers, the survey noted.
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