The Delhi NCR has had a launch of 31,000 residential units during first half of financial year 2012-13, registering a dip of 22% compared to the first half of financial year 2011-12.
The market shows a cautious outlook as sales have seen a dip. According to ‘quarters to sell’ analysis of Knight Frank India, which assesses the market health by comparing construction and sales timelines, it is observed that unsold inventory levels are showing an upward trend.
Rising property prices and high interest rates have also deterred genuine buyers from taking decisions.
The residential demand has remained strong in the NCR, despite being characterized as a speculative market owing to the predominance of investors.
However, recent revision of the circle rates is expected to bring more transparency in the market. The realty market of Gurgaon has had the highest number of launches in first half of financial year 2012-13 constituting about 33% of the total launched units in the NCR during this period.
Almost 45% of the units under construction in the NCR market is expected to be ready for possession by the end of 2013, as a bulk of these projects were launched in 2010. Nearly 56% of the units under construction fall in Noida and Greater Noida. Gurgaon constitutes nearly 20% of the units under construction.
The NCR residential market had a dip in absorption in H1 of financial year 2012-13 compared to H1 of financial year 2011-12. The residential sales usually go up during the festive season and towards the end of the year due to the discounts offered by the developers.
It remains to be seen if absorption levels will pick up in second half of the financial year. Nearly 71% of the absorption has been in the affordable segment with a ticket size less then Rs 50 lakh in H1 of financial year 2012-13.
The key markets in India recorded steady demand in 2012, as international and domestic retailers continued to open stores along the high streets and in prime malls despite concerns over the domestic economic outlook. The developers were more focused on reducing vacancy levels in existing projects than launching new projects.
Year 2012 was reasonably buoyant in terms of inventory sales. Gurgaon and its surroundings areas emerged as hot investment destinations as well as the first choice of end users, which helped in the sales process considerably.
With projects like Raheja Revanta, Raheja Aranya City, Raheja Oma, and Aranya City being nearly sold out, Raheja Developers is planning to launch their signature residential-cum-commercial-cum-retail project in Delhi; two group-housings and farmhouse projects in Gurgaon are also in the pipeline. Raheja Developers is expecting the sales velocity to increase in 2013 and it should augur much better for the industry as a whole.
As a part of the New Year offer, SARE Homes, in association with the State Bank of India, is offering a customer friendly scheme under which the customer needs to pay nothing for three years, after paying the first 20% for booking the apartment in its Spring View Heights, a new project in its 88.35 acre aspiration township on NH-24 in Ghaziabad.
In 2013, Amrapali Group is planning to launch around eight projects in Noida and Greater Noida West; of these two projects are in the luxury segment, while six projects are in the mid- and affordable segment. Amrapali Silicon City and Amrapali Platinum will come up with new towers with world-class facilities. Verona Heights was eco friendly residential project launched in 2012, over 46 acres, with 2,400 apartments in phase 1. We will construct nearly 13,000 flats over five phases here. The project comprises 2-, 3- and 4BHK high rise apartments, whose areas range between 975 sq ft and 2,135 sq ft.
Regions like Noida, Noida Expressway and Greater Noida West are expected to have a flourishing market with a number of new projects in 2013. The result of closely observing the market and rising up to the consumers’ expectations will decide the shape of the realty market in the year ahead.
Despite issues like land agitation, delayed projects and high interest rates that we have faced throughout the year, response from the customers has been good and encouraged the industry to continue building in the region in the future as well.
The real estate sector in India is ready to take a big leap in 2013. The coming year would carry a new set of aspirations and hopes and holds significance for the housing sector. Raising curtains on FDI and widening of ‘external commercial borrowing’ to an extent of $3 billion would bolster the growth for the retail and residential realty segment in 2013.
M3M India recently launched M3M Woodshire along the Dwarka Expressway; the developer says the project will be a haven for luxurious living for its residents. Sobha Developers, a Bangalore-based real estate company, recently ventured into the northern region of the country with their pioneer project, Sobha International City, in Sector 109 in Gurgaon.
Avalon Group has successfully launched two new projects, Avalon Regal Court and Avalon Royal Park in Bhiwadi. Bhiwadi is the fastest growing industrial town on the outskirts of Delhi. With places in the NCR and Gurgaon practically going out of reach of the common man, the choice of buyers has zeroed in on Bhiwadi. The town has full complement of social and physical infrastructure along with civil amenities in place, and has emerged as a credible alternative to Gurgaon.
Ansal Housing has come up with Ansal Heights in Sector 92 and Ansal Estella in Sector 103 on the Dwarka-Gurgaon Expressway.
Chintels India Ltd is going to launch Chintels Serenity in Sector 109 in the New Year; the project is over 12.3 acres and is a luxurious 1.1 million sq ft highrise apartment complex in the heart of New Gurgaon. Falcon Realty Services expects to deliver affordable housing units of its Global Eco City project in Kotkasim (Rajasthan) along the NH-8 in the New Year, according to the developer.
Alok Kumar Upadhayay
Real Estate Professional