Will the residential market of Delhi NCR market come back to track?

The Delhi real estate which was one of the most sought after residential markets has turned down to be one of the sluggish markets in the recent years. The market is nowhere in progress for the past few years. The market is piled up with unsold inventories and the sales are in the dip. Projects are highly priced and buyers are not ready to invest. The market had played a major role in the real estate segment in Delhi. Now, the slowdown in sales and these stagnation of the property prices has left the market to be majorly driven by the end users. The prices are so high and the buyers are not showing interest in buying for such high prices. On the other hand, builders are not ready to bring down the property prices. For long, investors have formed role in the housing market, but today, the stagnation in prices and slowdown in real estate investment conversions has left builders in the hands of end users who refuse to buy until prices become realistic. On the other hand, builders are not ready to reduce the property prices to encourage sales.rnAs of H1 2015, Delhi did not see any new launches and the one of the major reasons behind this is the lack of availability of land parcels. The market is completely stagnant with very few supply additions in Delhi NCR region and the presence of the bulk of unsold units also discouraged builders and kept them from launching new projects. Around 1.7 lakh Flats in Delhi NCR are left unsold and it will take five years to clear this pile. The new launches almost declined by 68 percent in H1 2015 and the sales dipped by 50%. Only very few transactions took place in the first half of 2015. Builders are reducing ticket prices of flats in Delhi NCR. Flats in Delhi of 2 BHK size, 3 BHK size and 1 BHK size have seen corrections in ticket prices. The lack in the buying sentiment will further delay the completion ad handover of the under construction projects. The market did not witness demand for the premium segment projects, leaving the market with very less launches in the projects of that segment type. A survey has brought out a fact that the majority of the unsold units in the Delhi NCR market lies in areas which lacks proper infrastructure. For buyers, Delhi NCR market has a number of projects varying from high-end project to mid-range segment. Villas, apartments and independent houses are available to buy and rent. The ticket sizes of the apartments in Delhi are about 2 BHK size, 3 BHK, 4 BHK, 5 BHK and 1 BHK size. To revive the market and to bring the market back on track, the developers and builders can consider bringing down the property rates. This may encourage the buying sentiment among home buyers as most of the buyers are delaying their buy due to higher pricing. This will increase the demand and may help the builders in clearing the inventories. Government has to take steps to revive the buying sentiments. Buyers prefer only completed projects as this is safe. Project delays are a major problem in the market. Obtaining clearances for projects are a big task in India and this is one of the reasons for the delay in the delivery of the projects thereby holding up the sales. This largely impacts the pricing of the projects, increasing the costs. The central government has decided on streamlining of approvals and this will largely help the builders in getting approvals faster.