By Accommodation Times News Service
According to the report of property consultant Knight Frank, more than one fourth of the total housing stock being constructed in the National Capital Region (NCR) is unsold due to weak demand. The NCR market witnessed about 31% decline in the new launches as sales has falls down. The Knight Frank’s latest report on NCR residential market said that there has been a steady price appreciation in most of the micro- markets even though there is demand remained. It attributed the rise in prices to increase in construction cost and investor demand. The report states like this, nearly 5, 20,000 residential units are under various stages of construction in the NCR market. The NCR residential market has an estimated 1, 40,000 units of unsold inventory which is approximately 27% of the units under construction. Even though it is quite high there is an improvement compared to early 2012 where both these markets together constituted nearly 78% of the unsold units. The report also revealed that almost 50% of housing stocks being constructed is expected to be ready for possession by the end of 2014.
The developers continue to cope with execution presumes as construction costs have risen in turn requiring more funds to be diverted towards existing projects the consultant observed.