Unsold apartments pile up in Delhi NCR
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.
Noida had a maximum pile-up of 1 lakh flats and Gurgaon had 26,000 unsold units