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
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.