The National Capital Region (NCR) remains the worst impacted among major real estate markets in the country, with home sales declining in each of the last four quarters, reports Mint newspaper.
In the September quarter, sales dropped by 12% to 13,820 units, making NCR the only market to register a slump among eight cities.
Insolvency cases against some of the largest real estate firms such as Unitech Ltd, Amrapali Group and Jaypee Infratech Ltd have further weakened the sentiment of homebuyers in the region, leaving many of them worried about the fate of their investments in the stalled projects.
High levels of unsold inventory have put prices under pressure in the country’s largest property market. Currently, builders in NCR are sitting on a total unsold stock of 240,000 units, according to Liases Foras Real Estate Rating and Research.
Weak demand has led to a 15-20% decline in home prices in the region, worse than that of the Mumbai and Bengaluru regions.
In the resale market, residential property prices have seen a similar fall. The Union government’s decision to implement demonetization of high-value notes in November 2016 hampered the secondary market’s growth the most.