The festive month of October spelled increased enquiries and sales in the residential market of Gurgaon. The sales volume, however, dipped in the subsequent months. The under-construction segment seemed to be regaining its popularity due to its pricing advantage over ready units. Buyers, however, stuck to purchasing under-construction units from only established developers with a track record of timely project deliveries. A few ongoing projects along Sohna Road and in New Gurgaon, therefore, gained traction this quarter.
Gurgaon witnessed an uptick in sales of housing units priced up to Rs 1 crore. Sale of premium homes priced between Rs 1.5 crore and Rs 2 crore remained meek, resulting in poor offtake in popular stretches such as Golf Course Road and Golf Course Extension Road. Amid restricted sales but robust demand, Sectors 53, 55, 56, Nirvana County and Sushant Lok Phase I saw property prices maintaining status quo in Oct-Dec 2019.
Despite holding an unsold inventory of around 56,000 units, new launches in Gurgaon went uphill from five in Jul-Sep 2019 to about 10 this quarter, capturing close to 60 percent of the total new residential launches in Delhi NCR in this period. These were mostly relaunched projects with the majority located in New Gurgaon and a few along the Dwarka Expressway. The two regions are touted to emerge as the most flourishing micro-markets in 2020 for both buying and renting as several projects are nearing possession. A few areas to watch out for include Sectors 81, 86, 90, and 92 in New Gurgaon, and Sectors 109, 111, and 113 along the Dwarka Expressway. The areas clocked a 2-3 percent hike in capital asks, QoQ, and rental ‘asks’, YoY.
The capital city observed status-quo in property enquiries and sales volume, QoQ. Sales largely restricted to affordable pockets or those linked or planned-to-belinked to the Delhi Metro. Property prices, too, remained unchanged in Oct-Dec 2019 against the previous quarter. The areas which displayed some positive price movement, QoQ, include Mayur Vihar II, Malviya Nagar and Lajpat Nagar II, all connected by the Delhi Metro.
Unlike the previous quarters, Dwarka, too, failed to report price growth as sales and enquiries did not witness any upward alterations. The locales which saw prices going up, albeit by a margin, included Sectors 8, 10 and 18. The rental market continued headstrong as over 40 percent of the micro-markets reported a surge in rental ‘asks’ by 6-9 percent between Oct-Dec 2019 and the same quarter last year.
Delhi saw the entry of two Pan-India developers – Godrej and Risland launching premium projects in South Delhi. While premium properties have been struggling for buyers in the city for long, projects by these developers drew exceptional demand. The shift seems momentary and project-specific, and does not necessarily hint at a revival in the luxury housing segment in Delhi.
The disparity in demand and supply of affordable housing seemed evident in the sudied quarter. A price correction of Government-owned projects in Narela seemed to have benefitted the market, which reported a four percent uptick, QoQ. The approval of an institutional hub at Narela may also have spiked buyer sentiment in the region.
Connectivity continued to be the prime growth driver for Delhi. The commencement of the construction work for Delhi Metro Phase IV promised sectoral growth in the short-to-mid-term. Three routes are being developed under this phase, including Janakpuri West-RK Ashram Marg (28.9 km), Aerocity-Tughlaqabad (20.2 km) and Majlis ParkMaujpur (12.5 km).
With 2.81 lakh stalled or delayed housing units (60 percent of the total units stalled across top eight metro cities), and an unsold inventory of 1.77 lakh housing units, the growth of Delhi NCR’s residential segment stood in a limbo in Oct-Dec 2019. Growing number of insolvency cases marred home buying sentiment, hitting sales dearly. Affordable pockets of Noida, Greater Noida and Gurgaon garnered maximum buyer traction. Any fillip to the stalled projects may boost consumer sentiment in the subsequent quarters. Infrastructure expansion, too, holds the baton to improved housing sales in the long-run.