Delayed Projects affect NCR residential market

One of the main problems which NCR Residential Market is facing now is delayed projects. Delayed projects drive away the demand for housing units in the capital.

The buyers’ sentiments are really hurt by the delayed projects. This is, thus, one of the main reasons which have affected the housing demand in Delhi-NCR.

According to a recent report NCR Residential Market is severely hit by delayed projects. Due to this unfavorable delay, home sales also have dipped in the city.

As per Knight Frank’s findings project launches have fallen by 31% in Delhi-NCR. The supply of new launches has been reduced by the builders who remain cautious to launch new projects. Most of the builders have restricted new launches to sell off their unsold inventories.

There are over 1.4 lakh unsold residential units in the NCR. Out of this, more than one fourth is under construction. It means that there is more number of delayed projects than any other cities of the country.

In the second half of last year, nearly 33500 housing units were launched in the region. This is 31% down.

Global property consultants warn that the new launches will be less in the coming months too. The slowing down of new launches along with the delayed projects, will affect the residential market in the NCR.

Financial issues are one of the main hurdles which builders face now. Most of the delayed projects are halted by financial crises.

Developers say that they are no more able to cop up with the escalating land prices and other prices of raw materials. All these factors force the developers to invest more in the projects which they are not capable of doing in many circumstances.

Though financial crises are there, the main reason for delayed projects is not this. In the opinion of many developers, delay in clearance is a bigger issue for delayed projects.

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