Un­sold apart­ments pile up in Delhi NCR

HT Estates - - HTESTATES - HT Es­tates Cor­re­spon­dent

Both cap­i­tal and rental val­ues of prop­er­ties stag­nated in the July-Septem­ber quar­ter this year. Over 1,70,000 units in Delhi-NCR re­mained un­sold. While Noida wit­nessed the max­i­mum pile-up of 1 lakh flats, Gur­gaon had 26,000 un­sold units, says realty site 99acres. com’s In­site, a quar­terly re­port fo­cus­ing on cap­i­tal and rental price trends in the res­i­den­tial real es­tate mar­ket across seven ma­jor cities of In­dia.

“The res­i­den­tial real es­tate seg­ment of the na­tional cap­i­tal re­gion (NCR) con­tin­ued to be in a state of in­er­tia in Ju­lySeptem­ber 2015. The slew of in­fra­struc­ture de­vel­op­ments and gov­ern­ment re­forms failed to bol­ster spir­its, thus, lead­ing to an in­creased prob­a­bil­ity of price slump in the forth­com­ing quar­ters.

Ru p e e d eva l u at i o n a n d nu­mer­ous free­bies by de­vel­op­ers at­tracted in­vest­ment from Non-Res­i­dent In­di­ans (NRIs), es­pe­cially in the lux­ury and ul­tra-lux­ury seg­ments,” says Narasimha Jayaku­mar, chief busi­ness of­fi­cer, 99acres.com.

Ch­hatar pur and Kundli emerged as the fron­trun­ners, hav­ing recorded a growth of 9% each.

The lo­cal­i­ties were fol­lowed by Kalkaji, which saw prices strength­en­ing by 8% in the quar­ter end­ing Septem­ber.

The growth in south Delhi’s Ch­hatarpur can be at­trib­uted to it be­ing an unau­tho­rised lo­cal­ity, where prop­erty prices are com­par­a­tively low. Kalkaji, too, owes its price ap­pre­ci­a­tion to the pres­ence of MIG hous­ing.

The key fac­tor that ad­versely im­pacted Delhi’s realty land­scape is the spike in circle rates, which trans­lated into a 20% rise in prop­erty price tags.

Pock­ets in Dwarka wit­nessed cap­i­tal val­ues slip­ping by 1% each in July-Septem­ber quar­ter. Dwarka faces stiff com­pe­ti­tion from Noida and Gur­gaon as both cities can now boast of rea­son­ably-priced prop­er­ties.

Noida mag­ne­tised prop­erty seek­ers owing to UP gov­ern­ment’s de­ci­sion to keep circle rates un­changed, es­pe­cially since the cap­i­tal city wit­nessed a surge in prop­erty prices.

NH-24, sec­tors 1 and 9 in Vaishali, and Raj Na­gar Ex­ten­sion were the gain­ers in Ghazi­abad, each reg­is­ter­ing a growth of 5% each in Ju­lySeptem­ber 2015 com­pared to the pre­ced­ing quar­ter.

The mi­cro-mar­ket of Ahinsa Khand in Indi­ra­pu­ram gar­nered sub­stan­tial in­ter­est from en­dusers. Cap­i­tal val­ues rose by 3% in the Septem­ber quar­ter ver­sus the April-June 2015 quar­ter.

Al­though stag­nant from a zonal per­spec­tive, cap­i­tal val­ues in Farid­abad climbed by 2%, while that in Dharuhera rose in­signif­i­cantly in the Ju­lySeptem­ber quar­ter.

In West Delhi, rental rates were the max­i­mum in Pa­tel Na­gar area t ouch­ing 14%. Rents in Vikaspuri surged 6% from Jan­uary to Septem­ber 2015. Dwarka sec­tors 9, 12 and 18A grossed 8% growth each in rental val­ues since March 2015.

The rental yields in Noida and Greater Noida de­clined marginally in the July-Septem­ber quar­ter ver­sus the Jan­uaryMarch quar­ter. While rates in Noida re­mained static, rents in Greater Noida fell by 3% dur­ing the same pe­riod. Val­ues in NRI City in Greater Noida soared by 13% owing to its strate­gic lo­ca­tion near Pari Chowk.

Sec­tors 78 and 47 in Noida, where sev­eral projects were given pos­ses­sion clocked a growth of 9% each. Growth in these mi­cro-mar­kets can be at­trib­uted to af­ford­abil­ity and ex­cel­lent con­nec­tiv­ity with the rest of the city.

Ghazi­abad’s rental land­scape did not per­for m well, with val­ues slid­ing by an av­er­age of 4% in the July- Septem­ber quar­ter. Rental val­ues in Raj Na­gar Ex­ten­sion de­pre­ci­ated by 13% dur­ing the pe­riod. This can be at­trib­uted to the road con­struc­tion work along NH-58 in Raj Na­gar ex­ten­sion area that in­con­ve­nienced com­muters and res­i­dents alike.

Vaishali’s rental mar­ket re­mained stag­nant. Fre­quent power c uts, c ou­pled with in­flated en­ergy bills low­ered the lo­cal­ity’s ap­peal as a rental zone de­spite con­nec­tiv­ity via Metro rail.

As far as Gur­gaon, Farid­abad, Dharuhera and Bhi­wadi mar­kets were con­cerned, Sec­tor 25, which is Phase III of DLF City, out­per­formed all other lo­cal­i­ties in Gur­gaon, record­ing an in­crease of 10% dur­ing t he pe­riod. Sec­tor 42 and Sohna Road saw val­ues in­creas­ing by 7% and 8% re­spec­tively.

Known for its af­ford­abil­ity, Su­ra­jkund’s rental mar­ket saw rents ris­ing by 8%.

As f ar as sup­ply i s conc e r ned, r e s i den­tial units con­tin­ued to cap­ture 68% of t he mar­ket, while builder floors took up a quar­ter of the re­gion. Pres­ence of NRIs led to in­creased de­mand for ul­tra- lux­ury hous­ing in the July-Septem­ber quar­ter com­pared to the pre­vi­ous quar­ter.

Noida and Greater Noida cap­tured ap­prox­i­mately 50% of the un­der-con­struc­tion mar­ket, in­di­cat­ing some new launches.

HT FILE PHOTO

Noida had a max­i­mum pile-up of 1 lakh flats and Gur­gaon had 26,000 un­sold units

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