Gurgaon has witnessed a steady growth in terms of sales during 2019. Proximity to the International Airport and the availability of Grade A commercial spaces have attracted a number of Multinational Companies to the city, avers Kshitij Nagpal, President, Association of Property Professionals.
How would you sum up the realty performance of your city in 2019? Is it in line with what you expected at the beginning of the year?
It has been a tough time for real estate in general. The last couple of years have not been that lucrative. Though the market has not seen anything drastic, there has been some consistency in sales. Signs show that regular sales have happened in all corners with pricing, either remaining stable or improving marginally.
How have the housing sales panned out this year?
The developers are not taking too many chances and are keeping it a low key. They are trying to focus on products which are ready with them and rationalising property prices to achieve sales volume.
On the other hand, few new launches have seen healthy sales and have shown improvement. The confidence of the buyers has also revived as the regulatory authorities are also keeping a good watch over the activities of the developers.
Which budget or housing category were homebuyers largely inclined to? Is the existing supply in tandem with demand?
It is a mix of luxury and justified product line that has witnessed sale in recent times. Super or ultra-luxury housing products have been suffering in comparison to the rest of the categories. Low supply is a major reason behind the consistent pricing.
Which micro-markets remained popular amongst homebuyers and why?
Gurgaon, in general, is supposedly witnessing a steady growth in terms of sales figures. Corporate favorability because of proximity to the International Airport and availability of Grade A office spaces are some of the factors that have been attracting multinational companies to the city.
Did the city or any micro-market in specific register noteworthy growth in prices? What factors drove the trend?
Land prices have seen a noteworthy hike in the developed sectors of Gurgaon in the past year. Sale of four floors along with increased FAR makes the offering more attractive in comparison to high-rise condominiums.
How many new projects were added to the city in 2019? Can you specify the areas and the budget range which witnessed maximum new launches?
Golf course extension road topped the chart in terms of new project launches. The prices hovered between Rs1.5 crore-Rs 6 crore, approximately.
What is the current status of unsold inventory in the city?
A few years ago, it looked almost impossible to have reached a stage where most of the developers have managed to reach today. The developers struggled to finish even a single product, which was 90 percent completed at the time of demonetisation. Such projects have now seen the light of the day. While few of them have been inhabited by the families already, the remaining are also expected to succeed soon.
Which government policies, as per you, served as game-changers this year?
Increase in the Floor Area Ratio (FAR) has been a significant reason for the increase in land prices of major colonies in Gurgaon. Reportedly, the prices in these colonies have increased by 30-35 percent. The decision has attracted a lot of new entrants from Delhi NCR and made the market stronger.
What are your expectations for the coming year?
The Government committed an amount of Rs 10, 000 crores for products that are falling short of completion due to hardships faced by the developers. The fund will be of great support to the overall sentiments of the market and will pave the way for a great beginning of the upcoming year. I am sure that the experiences of past years have made our trade wiser and will make it even stronger in the years to come. However, only capable contenders will be able to operate in the market with a better vision and a balanced flow of funds.