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Uttar Pradesh beats slowdown, springs hope for real estate sector

Uttar Pradesh chief minister Yogi Adityanath along with Union minister Hardeep Singh Puri (left) and UP RERA c…Read More

LUCKNOW: The stock of unsold inventory in Noida, Greater Noida and Ghaziabad has come down by 26% since the third quarter of 2017 despite slowdown, according to a report released by ANAROCK and NAREDCO during the first national RERA conclave in Lucknow on Monday.
In sharp contrast, Gurugram’s unsold inventory went up by 7% and that of Delhi by 20%.

The report titled ‘Addressing Challenges and Progressing Ahead in Real Estate’ says that from 1,31,150 units in the third quarter of 2017, the combined inventory of these three NCR cities has come down to 97,270 in the third quarter of 2019.
The highest pending stock was disposed of in Greater Noida where the unsold inventory figures fell by 27% from 66,570 units to 48,350 units. During the same period, unsold stock came down by 24% in Noida and Ghaziabad. There are 19,480 unsold units in Noida and 29,440 units in Ghaziabad. The report says the sale of these units was made possible despite slowdown due to restrictions imposed on the launch of new projects in these areas.
Giving a comparison with other areas where new constructions continued unabated, the report states that unsold housing inventory went up by about 7% in Gurugram which has the highest stock of unsold units at 55,900, up from 52,460 in 2017-end.
Delhi’s inventory also went up by 20% during this period, from 10,770 units to 12,960. Chairman of ANAROCK Property Consultants Anuj Puri said, “UP cities falling in NCR managed to reduce their stock by restricting launch of new projects and focusing on completion of pending ones. In Gurugram, over 2,030 units were launched in the third quarter of 2019 while only 1,610 units were collectively started in Noida, Greater Noida and Ghaziabad. Two years back as well, Gurugram saw supply of 3,520 new units while these three cities launched just 1,220 units in the same quarter.” The report praises the UP government for ensuring that RERA rules favour aggrieved homebuyers, particularly in Noida and Greater Noida. It adds that RERA policies have been diluted in other states.
“Nearly 76% of total 17,077 complaints filed with UP RERA till September 2019 relate to promoters and projects in Noida, Greater Noida and Ghaziabad. However, UP RERA has disposed of more cases (over 10,000) since its inception than any other state with active RERA rules in place,” the report says.
According to the report, another reason for the slowdown in real estate sector is that the residential units are now accounting for 84% of total inventory against 16% of commercial units. “Builders have been making the wrong product. While they are focusing on luxury and high-end projects, the demand is actually for lower income groups and economically weaker sections,” the report adds.