Although it is a small market in terms of the number of residential units under construction, Faridabad holds an important position. Development in this micro- market is backed by industrial growth. Most of the residential demand is driven by end users. Locations like Old Faridabad, sectors on NH2, Neharpar and Surajkund Road have seen ample residential project launches during the last few years. However, the Faridabad residential market witnessed the steepest drop in both project launches and absorption during the first half of 2014, compared to the first half of 2013.
The unsold inventory levels are the lowest in the NCR market, but the age of inventory is the highest compared to other micro-markets, clearly indicating a mismatch between the demand and products offered. Developers were over-enthusiastic in launching projects in Faridabad, and demand has been subdued due to lack of drivers.
Unlike Noida and Greater Noida, this market observed little demand from corporates with only 3 mn sq ft of operational office space. Project delays have also influenced the negative sentiment for this market, since this is an end-user market.