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Delhi NCR Insite Report Oct-Dec 2017

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Delhi Insite Oct-Dec 2017
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Market Movers

Delays and dilution of RERA norms curb realty growth

While absence of real estate authority and website continued to be a pain point for homebuyers in Haryana, Uttar Pradesh consumers complained of compliance discrepancy. Registration of 2,500 projects and 1,200 developers in Uttar Pradesh, however, offered a silver lining. Slow progress on RERA in Delhi dampened buyer sentiment in the capital city.

YEIDA completes over 1,000 homes

Expediting possession of homes, YEIDA issued completion certificates of 1,041 apartments, with more than 2,500 properties in the processing pipeline. CREDAI also confirmed the delivery of 10,000 flats in Noida and Greater Noida by December 31, 2017 against a goal of 50,000.

Upcoming infrastructure upgrades offer a ray of hope for NCR’s realty

Several infrastructure plans – Jewar International Airport and Rapid Metro PhaseIII – in the radar have fueled realty sentiment in certain pockets of NCR. The NoidaGreater Noida metro corridor, which is anticipated to become operational in April 2018, bodes well for the twin city’s property market.

Affordable housing gets a shot in the arm

Giving a fillip to the Centre’s ‘Housing for All’ initiative, Delhi Development Authority (DDA) simplified land pooling policy for construction of EWS homes and Haryana earmarked 15 acres of land in every sector for affordable homes.

Smart City projects to catapult realty growth

Smart City projects anticipated to catapult realty growth avail an interest subsidy of Rs 2.5 lakh. This policy will encourage potential buyers to take the plunge.

99ACRES OUTLOOK

Delhi Insite Oct-Dec 2017

The year 2017 witnessed the top Indian real estate markets endeavouring to cope with the kaleidoscopic swirl of events catalysed by the radical reforms of the Central Government. Although RERA and GST triggered the anticipated disruption in the industry, the residential segment was placated by the governmental efforts towards promoting affordable housing under Pradhan Mantri Awas Yojana (PMAY). All in all, 2017 proved to be a watershed year for Indian realty. Stakeholders are pinning hopes for a holistic revival in the real estate scenario in 2018. New launches, for instance, are likely to improve, with developers simultaneously focussing on RERA conformation and project completions.

The reform-driven environment will extract greater accountability from developers. This is likely to result in greater institutional investments some quarters from now. The new regulations are expected to improve investor confidence by crafting a template for a streamlined and organised sector. In 2018, home sales might start picking pace on the back of infrastructure enhancements. Several link road projects have already bolstered sentiment and opened up new commercial and residential avenues in NCR. The expanding metro network will prove to be a boon for the industry in the forthcoming quarters.

NOIDA AND GREATER NOIDA

Offloading inventory stockpile, although the twin cities exhibited resilience in Oct-Dec 2017, they remained far from recovery. Announcements such as the launch of Magenta Line metro corridor – connecting Noida to South Delhi, the delivery of 10,000 residential units and the announcement of penalty for delayed construction buoyed sentiment and kept price points under check in the quarter ending December 2017, vis-à-vis Jul-Sep 2017. Fund allocation to the Jewar International Airport proffered hope to the developer fraternity, otherwise befuddled by several policy changes.

Key Highlights

  • In what came as a pleasant surprise, Oct-Dec 2017 marked stability in home values in Noida and Greater Noida, after a dip in capital rates in the last two years. Metro expansion, supplemented by the promise of over 50,000 home deliveries by March 2018, acted as the harbingers of good news.
  • Sector 150, Noida emerged as the frontrunner with a four percent surge in capital ‘asks’, QoQ, followed by Sectors 118 and 121. Possession of a few long-delayed projects and anticipation of improved connectivity to Delhi via Aqua Line metro corridor by mid-2018 impacted price tags positively.
  • Sector Pi in Greater Noida, too, recorded a four percent incremental growth in Oct-Dec 2017, as compared to the previous quarter, on the back of upcoming metro connectivity to the neighbouring locality of Knowledge Park.
  • The residential belt of Sectors 73, 76 and 79, Noida, posted a 2-3 percent quarterly growth, each. Expedited construction work in projects and expectation of handover by H1 2018 worked in favour of these locales, which are otherwise overshadowed by the well-developed areas of Sectors 51 and 52.
  • The rental market of Noida continued with its downward trajectory with average weighted values dipping by two percent in Oct-Dec 2017, vis-à- vis the same quarter in 2016. Greater Noida, however, reported a stagnant market, YoY, after witnessing a three percent degrowth in Jul-Sep 2017 against Jul-Sep 2016.
  • Sectors 45 and 49 reprised their position on the top performers’ chart in Oct-Dec 2017, clocking a rental upswing of 3-4 percent, each, YoY. Traction from the workforce of Sectors 58, 62, 63 ensured consistent demand and propelled rents in these sectors.
  • Sectors Omega -1 and Zeta in Greater Noida topped the rental charts with a rise of six percent in average ‘asks’, YoY. The localities attribute their growth to the upcoming metro corridor.
  • Several possession-ready projects – some being on the verge of completion – drove rental values in Sector 78, Noida. Construction of the Aqua Line metro corridor, proposed to be operational by April 2018, also abetted growth.

 

Delhi Insite Oct-Dec 2017

GURGAON, FARIDABAD, BHIWADI & DHARUHERA

Oct-Dec 2017 emerged as a significant quarter for Gurgaon’s real estate as property prices plateaued after an unremitting fall in the last three quarters of the year. Enhancement of road infrastructure, promising reduced traffic gluts and travel time, acted as a growth inducer. A fresh date for the completion of Dwarka Expressway by March 2018 is also believed to have catalysed realty sentiment. Faridabad, on the other hand, continued to exhibit a downtrend in the quarter ending December 2017, albeit minimal.

Key Highlights

  •  Sectors 51, 65 and 82A topped the capital charts of Gurgaon, delineating an upturn of four percent in home values, QoQ. While possession of new high-end properties and construction of underpasses in Golf Course Extension worked in favour of Sector 65, Sector 82A benefitted from reduced traffic logjams resulting from removal of the toll gate. Strengthening of prices in Sector 51 did not come as a surprise with the locale being one of the most popular in Gurgaon.
  • Sector 37C, Gurgaon, also witnessed positive price movement on account of the new flyover and an upcoming underpass at Hero Honda Chowk.
  • Gurgaon’s rental market scored a marginal uptrend in Oct-Dec 2017, as compared to the same quarter in 2016, with DLF City Phase II and IV holding the baton of progressive charts. Rents in both the localities surged to the tune of eight percent, YoY, courtesy the new flyover at IFFCO Chowk.
  • Sector 70, Gurgaon, too, witnessed rental values bolstering by eight percent, YoY, on the back of the Southern Peripheral Road (SPR). Widening of the SPR boosted connectivity of Delhi, Faridabad and Gurgaon, and lessened traffic bottlenecks.
  • Only 35 percent of the tracked localities in Faridabad were able to beat the realty blues in Oct-Dec 2017, vis-à-vis Jul-Sep 2017. Sector 75 led the race, clocking a growth of three percent on the capital charts, QoQ.
  • Greenfield Colony and Sector 86 in Faridabad, witnessed a capital improvement of two percent in the quarter ending December 2017. While a spike in Greenfield Colony was a result of inflated ‘asks’, home values in Sector 86 strengthened due to newly completed projects and proximity to Nehar Par.
  • Charmwood Village, Sectors 86 and 88 were the only localities in Faridabad to report a rental upswing in Oct-Dec 2017 versus 2016. Charmwood Village has always been a popular locale owing to its proximity to South Delhi and presence of high-end projects, which are available at a comparatively low price range.

 

Delhi Insite Oct-Dec 2017

GHAZIABAD

Riddled with land acquisition scams and delayed infrastructure projects, Ghaziabad’s real estate market remained downcast for the fourth successive quarter. The rental landscape, however, offered some hope by showcasing a marginal improvement for the first time in six preceding quarters. The city awaits the completion of the Delhi-Meerut roadway widening project which is anticipated to benefit Ghaziabad, Noida and the tier-2 cities falling along the stretch. Improvement in connectivity via NH-24 might also uplift realty sentiment.

Key Highlights

  • Only 30 percent of the tracked localities in Ghaziabad clocked growth on the capital graph in Oct-Dec 2017. Surya Nagar, Ankur Vihar and Shalimar Garden emerged as the top performers, scoring an increase of two percent, each, in average weighted capital ‘asks’, QoQ. Improvement in civic amenities in the form of a solid waste management system and the launch of new hopper tipper vehicles made a positive mark on the realty sentiment of the localities.
  • Vaibhav Khand, Nyay Khand I, Shakti Khand III and Vaishali witnessed capital values inching up marginally in Oct-Dec 2017. Strategic placement along the Delhi Meerut expressway (DME) and proposed infrastructure plans – road improvements, 24X7 water supply, canal rejuvenation and streetscaping – have been instrumental in maintaining their popularity against other housing pockets in Ghaziabad.
  • The elevated link road connecting Ghazipur and Mohan Nagar benefitted both the localities. Any appreciation in capital rates, however, is a result of ambitious ‘asks’ quoted by the buyers.
  • Siddhartha Vihar reported a marginal rise in capital values on the wave of the new link road connectivity Vaishali between Noida and Ghaziabad, which serves as an important juncture between NH-58 and NH-24.
  • Although Kaushambi and Raj Nagar Extension recorded a capital downtrend of 2-4 percent, QoQ, steady infrastructure development is anticipated to work in favour of the locales in the near future.
  • The rental market lent a breather to Ghaziabad with slight headway in the graph in Q4 2017, vis-à-vis Q4 2016. Vasundhara topped the rental chart with a massive jump of nine percent, YoY.
  • Abhay Khand, Gyan Khand and Ahinsa Khand I reported an annual growth of eight percent in rents. With Ghaziabad aiming to compete in the Smart City mission for the fifth time, civic woes are expected to dissipate in the forthcoming quarters, giving a further thrust to the city’s real estate future.
  • Rental values in Crossings Republik strengthened by seven percent, YoY. While possession of new projects assisted growth, the locality is expected to see more traction from the buyer and tenant communities post the completion of the NH 24 project.

 

Delhi Insite Oct-Dec 2017

DELHI

Delhi’s realty graph continued to maintain status quo in Oct-Dec 2017 vis-à-vis Jul-Sep 2017. With the Central Business District (CBD) reportedly becoming one of the most expensive locations in the world and corporate houses opting for the comparatively low-priced zones of Gurgaon, Noida and Greater Noida, home seekers’ preference shifted to the peripheries. Metro expansion, however, proffered the much-needed respite to the residential landscape, preventing capital values from dipping by a huge margin.

Key Highlights

  • Delhi welcomed the last quarter of the year on a hopeful note, leaving behind the uncertainty associated with avant-garde policy changes. While Dwarka, North and West Delhi witnessed a positive price movement in Oct-Dec 2017, East and South zones recorded a 1-2 percent drop in capital rates.
  • Dwarka emerged as the bellwether of Delhi’s realty landscape, clocking a growth on both the capital and rental charts in the quarter ending December 2017. Over 60 percent of the tracked localities posted growth in average weighted values, QoQ, albeit, by an insignificant margin. Rental ‘asks’, too, surged to the tune of five percent, YoY.
  • End user demand from professionals in Gurgaon propelled home values in the established residential pockets of Dwarka – Sectors 9, 10, 12, 22 and Dwarka Mor. The anticipated completion of the Dwarka Expressway by March 2018, thereby, easing traffic movement to the Millennium City, too, played a role in improving the overall market sentiment.
  • East Delhi’s Dilshad Garden and Sector 13, Rohini, in the North reported a progressive landscape with c property rates improving by 4-5 percent, each, QoQ. The localities witnessed growth on the back of the expanding metro network.
  • DDA housing scheme 2017 benefitted several residential belts of Delhi including the northern localities of Pitampura and Narela, and the southern pocket of Vasant Kunj. While Pitampura and Narela reported a healthy growth of three percent, each, QoQ, Vasant Kunj portrayed a stable market. Growing property rates in Narela, however, do not correspond to improving demand. It is rather a result of a few new residential launches in an otherwise industrial pocket.
  • Sector 7 Dwarka and Sector 24 Rohini held the baton of progressive rental charts in Oct-Dec 2017, as compared to the same quarter of 2016. The sectors posted a whopping rise of 10 percent in rental tags on the back of the upcoming metro corridor.
  • The residential projects by National Buildings Construction Corporation (NBCC) Limited for Central Government employees accounted for the improvement in Khirki Extension’s rental rate. The locality witnessed a growth of nine percent, YoY.

 

Delhi

 

DEMAND-SUPPLY ANALYSIS

After five quarters of uncertainty and panic, Delhi NCR’s real estate stands on the threshold of a recovery. Although confusions regarding clauses in RERA and GST continue unabated, the upshots of demonetisation are gradually dissipating. With the developer fraternity focussing on compliance to the new norms, the buyer-investor community is looking forward to a better realty future.

Delhi DS Key Trends

  • While ready-to-move-in homes have been the flavour of the season, post GST implementation in July 2017, buyers in Greater Noida and Gurgaon continue to exhibit appetite for under-construction units. To this end, under-construction properties continue to capture one-fourth of the market.
  • The demand-supply gap in the affordable category (Within Rs 40 lakh) has nearly doubled in Oct-Dec 2017, vis-à-vis Jul-Sep 2017, with popularity of homes in this bracket outstripping availability. However, the new projects under Pradhan Mantri Awas Yojana (PMAY) are anticipated to bridge the lacunae in the next two quarters.
  • The luxury and ultra-luxury categories with properties priced beyond Rs 1 crore report a demand-supply mismatch of five percent.
  • The high-end segment, comprising homes carrying the tag of Rs 60 lakh-Rs 1 crore, reported the second-largest supply bucket. However, availability of homes in the category surpassed demand by 10 percent, QoQ.

Delhi ds

 

 

Annexures

Delhi NCR annexures_oct-dec 2017

 


Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. 99acres does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.


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