19 mn sq ft unsold housing inventory in Gurgaon

The increasing demand and supply gap in housing projects has left Gurgaon housing market with unsold inventory sizing 19 million sq ft, which counts to 28 per cent of teh total under-development area, reported PTI.
19 mn sq ft unsold housing inventory in Gurgaon

The increasing demand and supply gap in housing projects has left Gurgaon housing market with unsold inventory sizing 19 million sq ft, which counts to 28 per cent of teh total under-development area, reported PTI.

This has been revealed in recent ratings by ICRA, an Indian independent and professional investment information and credit rating agency.

 However, ICRA Research said in its latest report on Delhi- NCR residential market that sales would outstrip demand in near term at Gurgaon.

"Golf course road extension and new Gurgaon have remained the most active micro markets in Gurgaon witnessing maximum launches. The total area under development in the Gurgaon market stood at 66.11 million sq ft as on March 2014 end," ICRA said.

The total unsold inventory in Gurgaon is for 18.82 million sq ft, with 63 per cent of it being in the Golf course road extension and New Gurgaon.

The rating agency attributed the high unsold inventory to surge in supply in New Gurgaon and Golf Course Road Extension amid slowdown in Real Estate demand.

"We believe in the near term, improvement in sales velocity will take precedence over new launches," ICRA said.

The report highlighted that Gurgaon is witnessing major infrastructure developments like KMP expressway and Dwarka expressway, which are expected to create a positive impact on the overall market scenario.

Overall in Delhi-NCR housing market, ICRA said the demand is expected to remain subdued in the medium term due to tight monetary policy and weak economic growth.

ICRA also said that further funding avenues would remain scare with tightening of lending norms by banks and reduced inflows from other sources such as private equity investments.

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