Uttar Pradesh overcomes the slowdown, generates hope for the real estate sector

LUCKNOW: The inventory stock not sold in Noida, Greater Noida and Ghaziabad has decreased by 26% since the third quarter of 2017 despite the slowdown, according to a report published by ANAROCK and NAREDCO during the first RERA national conclave in Lucknow Monday.

In sharp contrast, Gurugram's unsold inventory was above 7% and Delhi 20%.

The report titled Addressing Challenges and Progress in Real Estate says that of 1.31,150 units in the third quarter of 2017, the combined inventory of these three NCR cities has been reduced to 97,270 in the third quarter of 2019.

The largest amount of outstanding stocks was eliminated in Greater Noida, where unsold inventory figures fell 27% from 66,570 units to 48,350 units. During the same period, unsold stocks fell 24% in Noida and Ghaziabad. There are 19,480 units not sold in Noida and 29,440 units in Ghaziabad. The report says that the sale of these units was possible despite the slowdown due to restrictions imposed on the launch of new projects in these areas.

Giving a comparison with other areas where new constructions continued unabated, the report states that unsold housing inventory went above by about 7% in Gurugram which has the highest stock of unsold units at 55,900, above from 52,460 in 2017-end.

Delhi’s inventory also went above by 20% during this period, from 10,770 units to 12,960. Chairman of ANAROCK Property Consultants Anuj Puri said, “UP cities falling in NCR managed to reduce their stock by restricting launch of new projects and focusing on completion of pending ones. In Gurugram, over 2,030 units were launched in the third quarter of 2019 while only 1,610 units were collectively started in Noida, Greater Noida and Ghaziabad. Two years back as well, Gurugram saw s above ply of 3,520 new units while these three cities launched just 1,220 units in the same quarter.” The report praises the UP government for ensuring that RERA rules favour aggrieved homebuyers, particularly in Noida and Greater Noida. It adds that RERA policies have been diluted in other states.

“Almost 76% of the total of 17,077 complaints submitted to UP RERA until September 2019 refer to promoters and projects in Noida, Greater Noida and Ghaziabad. However, UP RERA has eliminated more cases (more than 10,000) since its inception than any other state with active RERA rules in place, ”says the report.

According to the report, another reason for the slowdown in real estate sector is that the residential units are now accounting for 84% of total inventory against 16% of commercial units. “Builders have been making the wrong product. While they are focusing on luxury and high-end projects, the demand is actually for lower income gro above s and economically weaker sections,” the report adds.