Delhi-NCR Housing Inventory Overhang Reduces To 27 Months In Q2 2022: Anarock Report

Of the total unsold inventory in NCR, Gurugram currently has the maximum stock of around 59,120 units, which decreased by 7 per cent on quarterly basis

Noida saw no new supply in Q2 2022, while Greater Noida saw just 390 new units launched in Q2 2022.

Source : Getty

Robust sales number and limited new supply have helped NCR outpace the other top cities in reducing its housing inventory overhang by 53 months, according to a report by Anarock Research.

In the NCR, the inventory overhang stood at 80 months as of Q2 2021 and reduced to 27 months in Q2 2022. Since Q1 2015, Q2 2022 has seen the lowest inventory overhang in Delhi-NCR, indicating a favourable residential market scenario in a long time, mostly after the pandemic, reported by the real estate services firm.

Prashant Thakur, senior director and head – research, Anarock Group, said, “Inventory overhang basically reflects the sales velocity at a given time,” while adding, “Inventory measured in months indicates the number of months it will take for the current unsold housing stock on the market to sell at the current absorption rate. NCR saw its unsold stock decline by 16 per cent on yearly basis – from about 1,68,710 units in Q2 2021-end to approx. 1,41,240 units as of Q2 2022-end.”

The report stated that with remarkable restraint in this previously highly speculative market, which saw an unrealistically high number of projects launched in earlier years, developers in Delhi-NCR have restricted their new supply despite robust sales. Merely 4,070 units were launched in Delhi-NCR in Q2 2022.

Here is a list of the unsold stock in Delhi-NCR

Of the total unsold inventory in NCR, Gurugram currently has the maximum stock of around 59,120 units, which decreased by 7 per cent on quarterly basis.

Greater Noida has more than 28,875 unsold units as of Q2 2022-end, and reduced its stock by 8 per cent on a quarterly basis.

Ghaziabad saw its unsold stock decline to 17,990 units in Q2 2022 from 18,900 units in Q1 2022 – a 5 per cent quarterly decline.

Noida has about 12,150 units of unsold stock by Q2 2022-end, against 13,800 units in preceding quarter of 2022 – a decline of 12 per cent.

Delhi, Faridabad and Bhiwadi together have approx. 23,100 unsold units by Q2 2022-end – a 6 per cent fall from 24,700 units by Q1 2022-end.

Available inventory (units)
	Q1 2022	Q2 2022
Gurugram	63,870	59,120
Noida	13,800	12,150
Greater Noida	31,235	28,875
Ghaziabad	18,900	17,990
Faridabad, Delhi, Bhiwadi	24,700	23,100
Total	1,52,505	1,41,235

Source: Anarock

Delhi-NCR new housing supply

According to Anarock, overall new housing supply in Delhi-NCR slumped by 56 per cent on quarterly basis – from 9,300 units in Q1 2022 to nearly 4,070 units as of Q2 2022.

Gurugram saw maximum launches of 2,830 new units in Q2 2022, comprising a 70 per cent share of the total new launches in entire NCR. On a quarterly basis, Gurugram saw a decline of 64 per cent in new supply – from 7,890 units in Q1 2022 to 2,830 units in Q2 2022.

Noida saw no new supply in Q2 2022, while Greater Noida saw just 390 new units launched in Q2 2022. Realtors are consciously restricting new supply into these two markets.

Ghaziabad saw about 740 new units launched in Q2 2022. In preceding quarter of 2022, the city saw new supply of 220 units.

Faridabad, Delhi, and Bhiwadi together witnessed just 110 new units launched in Q2 2022, in sharp contrast to 920 units launched in the first quarter of 2022.

New supply (units)
	Q1 2022	Q2 2022
Gurugram	7,890	2,830
Noida	270	0
Greater Noida	0	390
Ghaziabad	220	740
Faridabad, Delhi, Bhiwadi	920	110
Total	9,300	4,070

Source: Anarock

Residential sales in Delhi-NCR 

A total of 15,340 homes were sold in NCR in Q2 2022 – the second-highest after MMR. On a quarterly basis, sales dipped by 19 per cent in Q1 2022. A total of 18,835 units were sold across the NCR. 

Housing sales (units)
	Q1 2022	Q2 2022
Gurugram	8,850	7,580
Noida	2,045	1,650
Greater Noida	3,450	2,750
Ghaziabad	2,080	1,650
Faridabad, Delhi, Bhiwadi	2,410	1,710
Total	18,835	15,340

Source: Anarock

At a glance

• In Gurugram, housing sales fell by 14 per cent on a quarterly basis – from 8,850 units in Q1 2022 to 7,580 units in Q2 2022 
• Noida saw 1,650 units sold in Q2 2022 as against 2,045 units in the preceding quarter – decreasing by 19 per cent 
• Greater Noida witnessed sales decline by 20 per cent on a quarterly basis. 3,450 units were sold in Q1 2022, and 2,750 units in Q2 2022
• Ghaziabad, which saw 2,080 units sold in Q1 2022 and 1,650 units in Q2 2022, saw a quarterly decrease of 21 per cent 
• Faridabad, Bhiwadiand, and Delhi collectively saw 1,710 units sold in Q2 2022, against 2,410 units in Q1 2022 – declining by 29 per cent