NOIDA, GREATER NOIDA AND GHAZIABAD
While Noida and Ghaziabad witnessed a stagnant market in Apr-Jun 2018, Greater Noida posted a drop in home values, courtesy a comparatively fragile civic infrastructure and safety concerns.
An inventory overhang of almost 90,000 units in Noida-Greater Noida kept realty sentiment in check, despite the expanding metro grid. Only 35 percent of the tracked localities exhibited growth in price points.
Sector 107, Noida led the capital charts with an uptrend of two percent, QoQ. Handover of new projects and proximity to the business hub of Sector 132 worked in favour of the locale.
Riding the wave of possession-ready homes and the upcoming metro corridor, Sector 150, Noida clocked a marginal growth on the capital graph, QoQ.
Average weighted rental values, too, plateaued in the twin cities, with Sector 78, Noida, beating the market blues with an eight percent growth in Apr-Jun 2018, vis-à-vis the same quarter in 2017. Rents in the locality bolstered due to the availability of new inventory.
The UP metropolises emulated the stasis prevalent in realty markets across the top eight cities, to report a plateauing capital graph in Apr-Jun 2018. The plethora of upcoming and completed infra projects – Jewar International Airport, elevated roads, new metro corridors, malls and medical units – improved sentiment, but did not convert into higher sales volume in Noida and Greater Noida. Ghaziabad’s realty market, meanwhile, remained placid in the face of stale inventory.
Sector 4 in Greater Noida West followed with a six percent upturn in rental rates, YoY. Possession of new projects opened up fresh inventory in this belt, leading to a rise in demand, therefore, price tags.
Sectors Chi 5, Greater Noida and Sector 120, Noida witnessed annual rental values skyrocketing by six percent, each. Growth in residential rents can be attributed to project handovers in the last six months, which ensured an abundance of fresh rental stock in Apr-Jun 2018.
Ghaziabad’s new launch segment continued to be sluggish in Apr-Jun 2018. Although the low-rise market received a fillip in the form of new building bye-laws, real estate sentiment stagnated with less than one-fourth of the tracked locales reporting capital growth. Rajendar Nagar emerged as the frontrunner in Ghaziabad, with home values increasing by three percent in Apr-Jun 2018, QoQ.
In the rental segment of Ghaziabad, only Vasundhara and Raj Nagar Extension clocked an uptrend, with nine percent and seven percent annual growth, respectively, YoY. While rents in Vasundhara buoyed as a result of new lease contracts, Raj Nagar Extension boasted of new projects.
GURGAON AND FARIDABAD
The residential real estate segments of both the Haryana cities witnessed restricted number of new launches in Apr-Jun 2018. While price points inched up slightly in Gurgaon on the back of some project handovers and new flyovers easing traffic gluts at important junctions, Faridabad reported weak realty sentiment. Soothsayers repose hope on the Faridabad Development Plan–2031, which is believed to infuse life in the quasi-industrial city’s realty market.
The residential segment of Gurgaon witnessed median home values heading north in Apr-Jun 2018, when juxtaposed with Jan-Mar 2018, albeit by an insignificant margin. The successful acquisition of a disputed farmhouse for the construction of the Dwarka Expressway proffered a silver lining.
Sectors 53, 65 and DLF City Phase II in Gurgaon, topped the popularity charts with each of the localities witnessing a quarterly surge of four percent in property prices. While the presence of an ultra-luxury project brought cheer to Sector 65, Sector 53 and DLF City Phase II boasted of good inter-city connectivity.
Sectors 107, 108 and 111 in Gurgaon also reported an upswing of four percent in Apr-Jun 2018, vis-à-vis Jan-Mar 2018. Homes with comparatively reasonable price tags, ranging between Rs 5,000 and Rs 6,400 per sq ft, bolstered sentiment in this belt. Property values will witness a further spike once the Dwarka Expressway is complete.
The Millennium City posted a cheerful rental market in Apr-Jun 2018, as compared to the June ending quarter in 2017, with average weighted rental values strengthening by four percent. The growth in lease rates has been credited to the migrant working populace and availability of new rental inventory in the time span.
Sectors 70, 78 and DLF City Phase IV reported a vibrant rental market, as a result of quick connectivity to Sohna Road and Golf Course Road. Rents in these residential belts skyrocketed by a margin of 10 percent, YoY. Possession of a few new units also helped push rental ‘asks’, which is anticipated to settle by the next quarter.
Although rental sentiment buoyed in Sectors 82 and 83, Gurgaon, in Apr-Jun 2018, clocking an annual growth of six percent and seven percent, respectively, ‘ask’ rates are expected to get impacted in the forthcoming quarters. The proposed shift of the Kherki Daula toll plaza towards the KMP expressway has been rejected.
Only 25 percent of the tracked localities in Faridabad posted growth on the capital charts in Apr-Jun 2018, as opposed to the preceding quarter. Not surprisingly, the most preferred residential area of Sector 81 led the race with over three percent uptrend in home values, QoQ.
Riding the wave of affordable homes, expanding metro network and new roadways facilitating inter-city connectivity, Delhi’s real estate reported a happier market in Apr-Jun 2018. Price points, however, continued to remain meek, with only select residential belts in proximity to road and rail infrastructure showcasing a positive movement. Completion of the Dwarka Expressway can proffer the much-needed breather to this saturated micro-market.
In line with the current market trend, the capital city reported maximum demand for affordable homes priced within Rs 40 lakh in the June ending quarter of 2018. To this end, growth in average property prices in the East and North Delhi, albeit by an insignificant margin, did not come as a surprise.
Sector-24, Rohini reported a capital appreciation of three percent in Apr-Jun 2018, when juxtaposed with Jan-Mar 2018. ‘Aspirational’ pricing around Rs 7,500 per sq ft contributed to the increase in average apartment values in the ready-to-move category.
Housing values improved by a margin of four percent, QoQ, in Laxmi Nagar, Mayur Vihar-III, Tilak Nagar and Ashok Vihar, despite the sealing drive on commercial properties. This incremental increase in price points is anticipated to settle in the forthcoming quarters if the sealing continues.
While Greater Kailash I and Alaknanda witnessed a surge of four percent in property price tags, Sheikh Sarai and Sarvpriya Vihar followed with three percent uptrend in Apr-Jun 2018, versus the previous quarter.
Property values in Dwarka are anticipated to shoot up once the expressway is complete. The rental market of the sub-city is also on a growth spree as is evident from the four percent rise in average rentals ‘asks’. Proximity to Gurgaon will continue working in favour of Dwarka unless the area sees an unreasonable spike in price points.
Marking a contrast to the preceding quarters, Delhi’s rental story showcased buoyancy in Apr-Jun 2018, as compared to the same quarter in 2017. Average rental ‘asks’ reported an upturn of three percent.
Tilak Nagar and Sector-24, Rohini emerged as the most popular rental pockets. Tenants also forayed into the southern zone of Lajpat Nagar IV and Safdarjung due to the availability of comparatively low-priced, but quality homes. The locales exhibited a massive surge of nine percent in rental 'asks', each, YoY.
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