Overhang looming on NCR residential real estate market, says ICRA

National Capital region (NCR), the second-largest residential real estate market in the country, was already under stress but the pandemic has made the situation worse by driving the consumers away.

With unsold inventory surging to around 222 million sq.ft across 170,000 units and annual absorption plunging under 15 per cent, the market now has an inventory overhang of over five years, ratings from ICRA estimates.

This not only poses more challenges for timely liquidation of inventory, particularly in over-supplied markets such as Noida and Sohna, but increases headwind for developers as well.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor