New Delhi: Nearly 5,00,000 houses are under construction in the national capital region (NCR), the largest residential market in the country, and half of them are slated to be ready for possession by next year, according to property consultant Knight Frank.
In its market overview, the consultant said that NCR did not witness a steep decline in launches last fiscal despite global economic slowdown and high mortgage rates in India.
"Nearly 86,000 residential units entered the market in FY 2012... Nearly 40 percent of the units launched, fall in the Rs 25-50 lakh ticket size," Knight Frank said in a report.
Ghaziabad contributed to about 34 percent of the number of project launched, followed by Gurgaon and Noida.
"Developers were able to gauge the pulse of the market and launched more affordable and mid segment projects than premium projects in FY 2012," it added.
Knight Frank research report found out that nearly 5,00,000 units were under various stages of construction in the NCR market as of March 2012.
"NCR is the largest residential market in the country by sheer volume of residential units launched. It currently has higher number of units compared to the other five metropolitan cities of Mumbai, Chennai, Bangalore, Kolkata and Hyderabad put together," the consultant said.
About 50 percent of the upcoming supply in the NCR market is expected to be ready for possession by 2013, as a bulk of projects were launched towards the end of 2009 and early 2010.
Nearly 57 percent of the upcoming supply falls in Noida and Greater Noida. Gurgaon constitutes nearly 19 percent of the upcoming supply and about 94,000 units are slated to enter this market by 2015.
"The NCR being the largest residential market faces challenges at the unsold inventory levels. However the market has shown stability and there has been no drastic dip in the sales velocity in FY 2012.
"The vacancy levels have improved and stand at 36 percent in Q4 2012 as compared to 40 percent in Q2 FY 2012," the report said.
About 78 percent of the unsold inventory is concentrated in Noida and Greater Noida, including Noida Extension that generated a controversy over land acquisition.



Latest news from Business News Desk