Housing clusters record healthy appreciation in Ghaziabad
Prices in the Kaushambi and Vaishali areas are in the range of 5,500 to 6,500 per sq ft while in Indirapuram prices are in the 4,800 to 5,500 per sq ft price range
Gh a z i ab a d c at e r s primarily t o t he mid- segment and affordable housing segments. It is home to established housing clusters such as Kaushambi, Vaishali and Indirapuram while upcoming residential corridors include Raj Nagar Extension and developments along the NH-24 beyond Indirapuram, including the Crossings Republik township.
While lack of land options has restricted new launches in the Kaushambi, Vaishali and Indirapuram clusters ( since they are already developed to a great extent and have a fairly large population), these residential clusters have also recorded healthy capital appreciation. Recent project launches have been mostly in the upper-mid and premium segments offering luxury specifications and upgrades from the usual, midsegment housing options.
Prices in the Kaushambi and Vaishali areas are in the range of ₹ 5,500 to ₹ 6,500 per sq ft while in Indirapuram prices are in the ₹ 4,800 to ₹ 5,500 per sq ft price range. The affordable residential clusters are in the average price range of ₹ 2,200 to ₹ 3,500 per sq ft. The upper end of the range is com- manded by projects which are completed or close to completion in Crossings Republik, while the newer projects in NH-24 are in the lower price band of ₹ 2,200 to ₹ 2,600 per sq ft. The Raj Nagar Extension corridor on NH-58 is also priced in the ₹ 2,600 to ₹ 3,000 per sq ft range.
With prices in the Noida Extension precinct in the Noida sub-market expected to be higher, Ghaziabad will continue to garner interest, particularly for affordable projects in Crossings Republik, Raj Nagar Extension and on NH-24. The Ghaziabad sub-market also enjoys a large population base from the industrial sector and SMEs, and lowincome workers l ooking to upgrade to better accommodation. Going forward, infrastructural developments are likely to aid in furthering residential developments in this area.
The residential real estate market across leading cities of the country is unlikely to see any traction before the upcoming festive season, when demand is expected to improve. While buyers have held off purchase decisions in anticipation of lowering interest rates, developers have been waiting for the festive season before launching special schemes and discounts to boost housing sales.
New housing supply confined to affordable segments: New residential projects launched during the first half of the year were largely restricted to the secondary and emerging micro-markets of leading cities.
The largest quantum of new launches was observed in the mid-segment and low segment, catering to the rising demand for affordable housing in the country. Most of this housing supply was concentrated in Chennai, Delhi National Capital Region (NCR), Bangalore and Pune.
Leading cities witnessed dwindling demand from home buyers during the first six months of 2014. Owing to high pricing and lending rates, home buyer preferences remained focused on the secondary and emerging micro-markets of leading cities.
Homebuyer interest remained largely focused on cost effective suburban markets of Delhi NCR during the first half of 2014. The residential market in Gurgaon saw stability in terms of new housing supply, while Noida remained the preferred housing market for new launches in the affordable and mid-end options.
Outlook: Against the backdrop of a stable government at the Centre, and expectations of faster decision-making and positive reforms, activity in the housing market across leading cities is likely to improve in the forthcoming quarters. Development firms are expected to focus mainly on the completion of under- construction projects. To achieve the national vision of providing ‘housing for all by 2022’, investments in the housing segment will need to grow manifold over the next seven to eight years.
In Delhi NCR, for instance, new policy measures may impact absorption activity in the coming months more specifically the festival season and winter months. The demand for mid-segment housing is expected to be largely concentrated in the emerging micro- markets of Noida Extension, Noida Expressway, Manesar and New Gurgaon. Going forward, these areas are likely to see a spurt in demand for housing in the premium/luxury segment.