Overhang looming on NCR residential real estate market, says ICRA

National Capital region (NCR), the second-largest residential real estate market in the country, was already under stress but the pandemic has made the situation worse by driving the consumers away.
 
With unsold inventory surging to around 222 million sq.ft across 170,000 units and annual absorption plunging under 15 per cent, the market now has an inventory overhang of over five years, ratings from ICRA estimates.
 
This not only poses more challenges for timely liquidation of inventory, particularly in over-supplied markets such as Noida and Sohna, but increases headwind for developers as well.