102,758 Units Makes Delhi Top the List of Unsold Inventory

Bangalore: As per the real state intelligence PropEquity, Delhi-NCR tops the unsold inventory at 102,758 units compared to Mumbai at 90,512 units, Bangalore at 46,596 units and Pune at 40,734 units.

Samir Jasuja founder and Chief Executive of PropEquity pointed out the reasons behind the unsold inventory as, increase in interest rates, restricted funds, and also the construction cost is very expensive nowadays. The other reasons why developers get affected are: the project approvals gets delayed and there are also issues related to land-acquisitions, and last but not the least, ‘the price’ which is one of the major concern for the buyers.

In 2012, the market for residential segment will remain low because of the hike in interest rates, revealed by an International Consulting Firm, DTZ. “As increasing inflation levels continue to remain a concern for RBI, the residential sector may witness further increase in home loan interest rates. This would further impact demand for the residential segment, particularly among the mid-range and low-end segment,” said Anshul Jain, chief executive, DTZ India, reports Business Standard.

Compared to previous year this year the developers have decreased the rate of new inventories with the increase in prices, where Gurgaon has reached to its maximum price at 21.4 percent, Mumbai stands at 13.2 percent and Pune 12.5 percent. Moreover, Reserve Bank of India (RBI) has also hiked their policy rate by 12 times, since March 2010

Therefore, the market outlook shows that the residential real estate sector will remain low in 2012. This means that developers will have to concentrate more on the on-going projects than to come up with new one, as said by Jasuja of PropEquity.