Connectivity projects on cards for Delhi NCR
The planned link road between Vasant Kunj in Delhi and MG Road in Gurgaon, and its further extension to Delhi-Jaipur National Highway is expected to improve connectivity between the two States. Meanwhile, the opening of the Kundli-Manesar-Palwal Expressway soon is touted to augment inter-city connectivity. The government has also given an approval to the Delhi-Meerut rapid rail project.
Government expands Delhi Metro’s reach
Cutting down the travelling time between North and East Delhi, the government planned a new station along the Delhi Metro’s Pink Line. Located at Anand Vihar, the station is expected to be a major transport hub with four lines operating at once.
DDA approves land pooling policy
The approval of the land pooling policy by the Delhi Development Authority (DDA) is expected to help the city cater to the residential demand of over 76 lakh people and lead to the development of 17 lakh housing units in the city. The scheme provides an extra 15 percent Floor Area Ratio (FAR) for EWS/affordable housing segment.
Circle rates in Noida and Greater Noida maintain status-quo
Unchanged circle rates in Noida, Greater Noida and Yamuna Expressway relieved homebuyers. A reduction in the surcharge levied on lifts and power back-up for group housing complexes, implying a reduction in the registration cost from 15 percent to six percent, further cheered the buyer community.
Crackdown on illegal housing continues in Noida and Ghaziabad
Taking stringent action against illegal constructions, the Ghaziabad Development Authority (GDA) demolished over 100 unauthorised buildings and identified over 650 properties that must be razed. Noida Authority, too, served notices to 26 illegal multi-storey buildings in Barola village and Hindon Vihar.
After an impasse lasting many quarters post demonetisation, Delhi NCR recorded a fifty percent, QoQ, uptick in new unit launches in Jul-Sep 2018. Noida and Greater Noida constituted close to two-third of the total new launches and housing deals. Infrastructure development, improved consumer sentiment and increased sales volume positioned the two micro-markets at a comfortable spot in the Jul-Sep 2018 quarter.
Affordable pockets boasting of strong connectivity ruled the roost in the region. Massive budgetary allocation towards roadways and metro expansion ensured that residential belts falling along these areas displayed an increment in capital price, QoQ, and rental prices, YoY.
Majority of the new supply was noted in the mid-income housing segment, with consumers reinstating their faith in the property market. Increased transparency and accountability post RERA and GST are seen as major growth inducers. Several new announcements in the quarter such as the final nod to the land pooling policy, possible connectivity between IGI airport and Jewar airport, metro expansion and highway developments foretell a promising future for Delhi NCR’s realty market. Additionally, the completion of the Dwarka Expressway, stricter governance under RERA, action plan of Faridabad Metropolitan Development Authority (FMDA), and fast-tracking of delayed roadway projects are also anticipated to boost sentiment and housing demand, and strengthen prices in the city.
NOIDA, GREATER NOIDA AND GHAZIABAD
Consumer preference witnessed an evident shift towards possession-ready homes in Delhi NCR this quarter. Demand for such properties rose by four percent, QoQ, with a corresponding five percent increase in supply. Average weighted prices, however, maintained status-quo as buyers pinned their hopes on a price revision. With the proposed Jewar Airport and upcoming Aqua Metro line set to change the face of Noida-Greater Noida Expressway, a rise in housing demand along the stretch is on the cards.
Noida and Ghaziabad witnessed reduced demand for under-construction properties owing to a history of project delays, however, ready homes saw an increase in demand and supply in Jul-Sep 2018.
Average weighted capital values remained stagnant in Noida and Ghaziabad, while Greater Noida posted a one percent increase, QoQ, fuelled by the multiple infrastructure projects in the pipeline. Commercial expansion along Noida Expressway, too, contributed towards the residential demand in the region.
Pockets that led the capital charts in Noida and Greater Noida are undergoing a facelift with retail and commercial establishments coupled with plethora of housing options for consumers. Sectors 75 and 78 in Noida posted a three percent hike in capital prices, each, QoQ, on the back of metro construction, and improving socio-physical infrastructure.
Sectors 115 and 128 on Noida Expressway, too, featured among the top grossers owing to the numerous affordable and luxury residential projects coming up in the vicinity. Both localities clocked a three percent increase, each, in capital prices. Sound connectivity due to proximity to Noida-Greater Noida Expressway and the upcoming Faridabad-Noida-Ghaziabad (FNG) Expressway and Eastern Peripheral Expressway (EPE) also signals a further capital appreciation across the sectors situated along the stretch.
While rental 'asks' maintained status-quo in Noida and Greater Noida due to an acute oversupply of rental inventory, Sector 137 witnessed a growth of nine percent, YoY. The soon-to-be-operational Aqua Line of the metro and the expanding commercial market are driving growth in the pocket.
Although property prices in Ghaziabad saw no change, QoQ, the decision to keep the circle rates unchanged improved market sentiment.
Mohan Nagar emerged as the frontrunner in Ghaziabad with a four percent rise in capital values, QoQ. Approval of the proposed Vaishali - Mohan Nagar metro extension boosted home values in the locale.
The rental segment of Ghaziabad marked a significant improvement with several localities clocking a 4-9 percent increment in 'ask' rates, YoY. Affordability and metro connectivity drove the rental graph upwards.
GURGAON AND FARIDABAD
Positive governmental efforts to uplift the infrastructure in Gurgaon and Faridabad failed to produce concrete results as the second upward revision in circle rates in Gurgaon by 10-25 percent dampened consumer sentiment. Execution of the Development Plan-2031 in Faridabad coupled with the announcement to set up a metropolitan development body to provide impetus to integrated infrastructure development and urban amenities led the zone to chronicle a marginal increase of one percent in average weighted prices, QoQ.
Infrastructural overhauls and proximity to the soon-to-be-completed Dwarka Expressway were the prime benefactors for the locales in Gurgaon. Sector 83 chronicled a four percent rise in capital prices, QoQ, on the back of rapid development of housing projects, accessibility to Dwarka Expressway and well-developed social infrastructure.
Other sectors that topped the popularity charts include 24, 42, 65 and 77. Supply of luxury projects in the vicinity, proximity to DLF Phase I, Cyber City and access to the metro ensured consistent price rise across these localities. Sectors 106, 108 and Ardee City followed suit, with a host of competitively priced housing options within Rs 7,500 per sq ft.
Rental market of Gurgaon continued to benefit as prospective buyers deferred purchase decisions. The quarter recorded a four percent upswing in average rental prices, YoY, in Gurgaon.
Sectors 15, 51 and 78 led the rental graph with a 9-10 percent increment, YoY. Growing office market, proximity to schools and hospitals and access to Dwarka Expressway helped the sectors garner robust demand from the tenant community.
The average weighted values in Faridabad maintained status-quo this quarter, with limited sectors recording an upswing in capital rates. The market, however, may register growth in the ensuing year due to infrastructure developments such as metro rail extension to Ballabhgarh, and the expansion of National Highway 19 to six lanes in progress.
The selection of Faridabad in the Rs 2,601 crore Smart City project will be a game changer for the city, if executed as planned. So far, the project is moving at a very slow pace, however, 69 sub projects are expected to be completed within the next three years.
The rental market of Faridabad displayed a more positive picture than the capital market, recording a three percent increment in average rentals, YoY. Sectors 87 and 28 led the rental charts with a 6-7 percent increase in 'ask' prices, each. Both the localities are established residential hubs with a host of civic and social amenities including schools, hospitals, banks and entertainment options. Most working professionals working in Delhi prefer to live in these affordable pockets of Faridabad.
Delhi’s real estate market, which was battling slowdown and volatility in the past few quarters owing to stringent policy changes such as RERA and GST, is gradually stabilising with counter initiatives by the government. Some of these include approval of the land pooling policy, rapid development of Dwarka Expressway and tentative connectivity between IGI Airport and Jewar airport. While average weighted prices were up by merely a percent QoQ, the spillover effect of the ongoing developments will be realised in the upcoming quarters.
Only select markets in North and South Delhi featured among the frontrunners on Delhi’s capital graph in the Jul-Sep quarter. In South Delhi, Hauz Khas Enclave, Lajpat Nagar IV and Shivalik reported a four percent increase in capital values.
The new metro junction at Hauz Khas, as a part of the Magenta line, is located right below the existing Hauz Khas station of Huda city centre-Samaipur Badli line. This stretch has not only spelt good news for commuters from Gurgaon, Noida, Faridabad and Dwarka, but also pushed capital values upwards.
Mirroring the trend across UP and Gurgaon, Delhi too saw an increase, albeit minimal, in availability of residential apartments. Supply of homes within Rs 40-60 lakh budget saw the maximum increase by three percent, QoQ, followed by Rs 60 lakh-Rs 1 crore budget range.
In North Delhi, Narela and Rohini Sector 11 and Sector 24 chronicled a 3-4 percent rise in capital values. The proposal of developing vacant areas in Rohini and Narela boded well for the realty markets of these localities. Proposal to work on 15 new development schemes, 14 new housing-related development works and a rail-overbridge at Narela were also rolled as a part of the Budget by Delhi Development Authority (DDA).
As news of the impending completion of Dwarka Expressway floated, prices across well-connected Sectors 2, 8, 11 and 17 of Dwarka witnessed an increase of three percent, QoQ.
Rental market of Delhi was driven by the continued preference of majority consumers’ postponing their buying decision till the governmental initiatives begin to take shape. The zone witnessed an increase in the rental 'asks' by three percent, YoY.
Affordability, connectivity to Gurgaon via Dwarka Expressway and metro accessibility ensured that Sectors 4, 7, 12, 13 and 22 of Dwarka featured at the top of the rental graph with a 7-10 percent increment in rental rates, YoY.
Low and mid-priced pockets such as Uttam Nagar in West Delhi and Freedom Fighter Enclave in Saket were other localities that saw a rental increment of nine percent, each, YoY. Aside from pocket-friendly housing options, enhanced metro connectivity in these areas also attracted the tenant community.
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