Real es­tate mar­ket up­date

Prop­erty prices in the pre­mium and mid-end cat­e­gories re­main sta­ble in some lo­ca­tions across Delhi NCR while new launches de­cline

HT Estates - - HTESTATES - A S Si­vara­makr­ish­nan

it to a fu­ture round of the smart city chal­lenge. “They could be el­i­gi­ble in the next round of t he chal­leng e. The Smart Cities Mis­sion calls for a par­tic­u­lar ap­proach of strate­gic plan­ning, it dif­fer­en­ti­ates it­self as an ex­e­cu­tion strat­egy and lays em­pha­sis on pub­lic con­sul­ta­tion and on in­te­grated ev­i­dence-based plan­ning, both spa­tial and phys­i­cal. For exam- ple, smart man­age­ment of park­ing so­lu­tions. Also, noth­ing will stop cities from rais­ing fi­nance from other sources,” he adds.

The Delhi Na­tional Cap­i­tal Re­gion (NCR) saw a de­cline in hous­ing sales in the pre­mium/lux­ury as well as high­end/mid-end cat­e­gories dur­ing the first six months of the year. New res­i­den­tial launches also re­mained low dur­ing the pe­riod, ac­count­ing for about 20% of the over­all sup­ply of fresh prop­erty launches across lead­ing cities in the first half of the year.

The de­cline in new launches was pri­mar­ily due to an in­crease in un­sold in­ven­tory, forc­ing de­vel­op­ers t o re­strict new launch ac­tiv­ity. Cap­i­tal val­ues across mi­cro-mar­kets re­mained sta­ble, while se­lect lo­ca­tions saw a price de­cline dur­ing the first half of 2015.

Delhi did not wit­ness any hous­ing launches dur­ing the first half of the year, since home­buyer in­ter­est was largely fo­cused upon the cost ef­fec­tive sub­ur­ban mar­kets of Gur­gaon and Noida. Ar­eas that at­tracted new launches in­cluded outer Gur­gaon re­gion beyond the IMT– Mane­sar toll and along the North­ern Pe­riph­eral Road. As against the sec­ond half of 2014, Noida also saw a drop in new launches, as de­vel­op­ers fo­cused mainly on com­plet­ing un­der- con­struc­tion projects. Project launches were lim­ited to high-end/mid-end hous­ing seg­ments in Noida.

Pric­ing trends in the hous­ing seg­ment

On a half yearly com­par­i­son, prop­erty prices in the pre­mium/ lux­ury and high-end/mid-end cat­e­gories re­mained sta­ble in lo­ca­tions such as Chanakya­puri, Vas­ant Vi­har/Anand Nike­tan and Shan­tinike­tan/ Wes­tend, De­fence Colony and New Friends Colony. Rental val­ues con­tin­ued to be im­pacted by ten­ant pref­er­ences for af­ford­able prop­er­ties in the sub­urbs; while pre­mium/ lux­ury mar­kets such as Shanti Nike­tan/Wes­tend and Vas­ant Vi­har/Anand Nike­tan saw mi­nor rental cor­rec­tions of 2% to 4% over the sec­ond half of last year. The high-end/mid-end res­i­den­tial mar­kets of New Friends Colony and De­fence Colony also saw a rental drop of about 6% to 8% dur­ing the first half of 2015 over the sec­ond half of 2014.

Prices in the pre­mium/lux­ury mar­kets of Sushant Lok, Golf Course Road and DLF Phases I–IV in Gur­gaon saw mar­ginal cor­rec­tion of 2% to 4% dur­ing the re­view pe­riod; while prices in the high- end / mi­dend seg­ments on Sohna Road also dropped by 5% to 6% over the sec­ond half of 2014 dur­ing the pe­riod. The Noida–Greater Noida Ex­press­way noted a rental drop across pre­mium/ lux­ury and high-end/mid-end seg­ments.

Re­cent pol­icy ini­tia­tives

T he gover nment re­cently ap­proved tran­sit ori­ented de­vel­op­ment (TOD) pol­icy for Delhi. This move will go a long way in ad­dress­ing hous­ing short­age in the re­gion, while com­pli­ment­ing the Gov­ern­ment’s vi­sion of hous­ing for all. Fa­cil­i­tat­ing ver­ti­cal de­vel­op­ment with in­creased Floor Area Ra­tio (FAR) for pro­posed TOD zones will help ad­dress the land short­age in prime ar­eas of the city. The fo­cus on de­vel­op­ing af­ford­able hous­ing units is also com­mend­able, and will greatly as­sist in man­ag­ing the bur­geon­ing ur­ban in­flux into the Cap­i­tal city.

An­other re­cent pol­icy up­date has been the Na­tional Green Tri­bunal (NGT) draft no­ti­fi­ca­tion be­ing ac­cepted for Noida. All projects that had been stalled in the Noida mar­ket can now re­sume con­struc­tion ac­tiv­ity. Hope­fully, with the realty mar­ket open­ing up once more in the area, home­buyer de­mand will pick up as well. Mean­while, the Lu­tyens’ Bun­ga­low Zone (LBZ) in New Delhi is pro­posed to be re­duced in area, pend­ing ap­proval. If ac­cepted, it will fall in line with the larger ur­ban de­vel­op­ment en­deav­ours of the Delhi Mas­ter Plan.

ISTOCK

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