Delayed projects have hit the NCR residential market. Due to the delay of projects the home sales have dipped in the NCR.
DELHI-NCR: The prospective buyers are nailed by delay in projects. As per a recent report by Knight Frank states that new launches in the Delhi-NCR has fallen by 31%. It has adversely affected the NCR residential market.
As per the report, NCR residential market has nearly 1,40,000 unsold inventories. Out of this, over 27% is under construction.
As per the Knight Frank India report the 33,500 units were launched in the second half of 2012-13. This shows a fall of 31%. Global property consultant firm warns that the launches will see slowdown in the coming months too, affecting the largest residential market.
Developers are finding it really hard to complete the projects. The escalating prices of raw materials make construction costlier. This prompts the developers to invest more. Difficulty in finding sufficient fund is thus another reason for delayed projects.
Real estate developers are affected by liquidity crisis. Their access to both domestic and international funds is limited, forcing them to slow down the construction.
However, compared to the first half of the year, there is a 6% growth in the new launches.
Greater Noida bagged nearly half of the total launches over the year. It recorded a 40% rise on year on year basis. The rates of new launches vary from Rs.2900 to Rs.3500 per sq. ft., added Knight Frank.
Approximately 520000 housing units are under construction in the NCR region. Only around a half of these will be ready by the end of 2014.
Besides the delay of projects, execution delays also have affected NCR residential market.