Delhi-NCR: 5.68L houses under construction; periodic bans add to buyers’ misery

While there are nearly 5.68 lakh houses in different stages of construction in Delhi-NCR, any kind of periodic building ban by various agencies can only delay the projects, causing further misery to the buyers.



The maximum number of units under construction is in noida and Greater Noida areas, accounting for nearly 2.70 lakh units, according to one estimate.

A one-month ban on all construction activities delays a project by at least 3-4 months on average, according to research by Anarock advisors.

According to the survey, the areas in Delhi-NCR with the maximum units under construction currently include Greater Noida West, Yamuna Expressway, New Gurugram, Noida Expressway, Dwarka Expressway, Central Noida, Sector 150 (Noida), Greater Faridabad, Raj Nagar Ext (Ghaziabad), Sohna and Ext Road golf course.

These areas together have more than 4 lakh units which are currently in various stages of construction. Greater Noida West alone currently has over 1.37 lakh units under construction.

Air quality in Delhi-NCR has deteriorated and heavy smog is beginning to engulf the region. To combat pollution, an action plan has also been rolled out in advance this year which stipulates that if pollution levels exceed certain levels (i.e. stage III or ‘severe’), authorities must maintain a ban on construction and demolition activities in NCRexcept for critical projects (such as railways, metros, airports, ISBTs, national security/defence-related projects of national importance).

In addition, the construction of projects is also hampered by protests over the issue of land compensation.

The Anarock study said that because they are periodic, the impact of these building bans on overall property prices is almost negligible. Moreover, real estate prices in most cities are not so much a function of environmental considerations as of accessibility, proximity to city centers or major employment hubs, urban mobility via different modes of public transport and affordability.

Also in Mumbai, the city experiences constant flooding during the monsoon, but real estate prices remain stable. In fact, in the past two and a half years since the pandemic, the Mumbai Metropolitan Region (MMR) has been the most active in both new offerings and new launches.

As far as Delhi NCR is concerned, the region has also been very active. While developers limited the new supply, home sales were significant.

In fact, the region has lost at least 23 percent of its unsold stock in the past 2.5 years since the pandemic.

At the end of the first quarter of 2020, the total unsold stock in Delhi NCR was 1.73 lakh units, which has fallen to just over 1.32 lakh units as of the end of the third quarter of 2022, the Anarock survey said.

ALSO SEE:
Huge walk in plane tickets from Delhi, Mumbai to Patna

Nissan X-Trail premium SUV launches in India – features, specs and everything you need to know