Radical policy reforms such as demonetisation, RERA and GST have had a cascading impact on property markets across the country. Gurgaon is no different. With the city witnessing enhanced supply of ready properties as a result of these policy changes, both capital and rental markets are expected to flourish in the city.
Going by the previous patterns of real estate functioning, the industry was on the brink to complete its bear run. However, unlike expectations, the last one year turned into a bumpy ride for the sector. Thanks to historic policy reforms such demonetisation, which was last heard of in the 1978, Real Estate Regulatory Act (RERA), which was under planning since 2013 and finally implemented in 2017, Goods and Service Tax (GST) and Benami Property Act.
All these radical moves have had a cascading impact on the Indian real estate sector. However, these have together created a launch pad for the sector to start moving towards growth at a fast pace.
As a result of all these policy reforms, the Indian real estate market has been injected with balance, stability, long term growth and dependable patterns. To say the least, the changes have brought India at par with global businesses and real estate standards in terms of regulatory and taxation systems.
In the meanwhile, Gurgaon’s realty landscape has seen a major decline in new residential project launches, bringing the numbers to an all-time low at only 3000 new unit launchs in H1 2017. Out of these, majority units belong to the affordable housing category of all-inclusive price range of Rs 20-25 lakh.
Developers in Gurgaon are expecting and preparing for a revival in sales in the festive season on the back of heavy discounts on ready to move projects. Those who are eyeing smaller ticket sizes and payment plans extending up to four years are expected to consider RERA registered, under construction projects. However, the general buyer sentiment at the moment is inclined towards ready to move inventories owing to trust deficit created over the last few years.
Some of the prime micro-markets are witnessing distinct trends in this moment of ambiguity. Here is a snapshot of a few of them -
Golf Course Road is witnessing negative capital growth; being the most luxurious market of Gurgaon, it is only witnessing distressed sales as of now.
Golf Course Extension Road is witnessing handing over of many pending projects. Several developers including IREO, Emaar MGF etc. are already handing over properties to their respective owners, hence creating a flow of fresh ready-to-move-in supply, strengthening the rental markets.
Dwarka Expressway has also flung into possession action - projects by Chintels India Ltd., Puri Construction, M3M Developers, Raheja Developers, Mahindra Lifespaces, ATS Developers and Ramprastha Developers are close to delivery.
New Gurgaon – Several developers in New Gurgaon are close to delivering their projects. A few of them include Bestech Group and Raheja Developers, among others.
The completion of under-construction properties is creating a huge wave of ready supply in New Gurgaon. This will be complemented in coming years by more projects.
The affordable housing projects, which constitute a lions’ share in sales today, will add another huge chunk in the inventory in the coming years.
Future investment potential
Residential properties in Gurgaon are expected to witness a healthy price appreciation in the coming years. Ready-to-move properties will see a modest growth in the medium to long term. Gurgaon has always had enough residential demand to absorb the burgeoning supply. This time it will not be any different.
The rental market is thriving in Gurgaon, however only for those who want to lease/rent the residential property for self-use. As supplies increase, it humbles the rentals, this is the way forward for at least 2-3 years across Gurgaon’s new properties.
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