NCR MARKET WORST PERFORMER; GREATER NOIDA SEES MAXIMUM LAUNCHES
The year 2015 ended with the lowest number of new launches and sales volumes across the country since 2010 with NCR continuing to be the worst performing market in India. It will take at least four more years to exhaust the existing unsold inventory of 206,000 units, says the report by Knight Frank titled India Real Estate.
Piling up inventory and low sales velocity led developers to restrict the supply of new launches. Dropping to 63,460 units in 2015, new launches registered a 20% dip year- on- year t o t he same period in 2014, says the report.
Residential projects under Haryana’s affordable housing policy 2014 contributed significantly t o t he new launches in NCR in the first half of 2015.
Interestingly, demand did witness a recovery in the second half of 2015. The market registered a 15% recovery in sales in the second half compared to the same period in 2014.
The growth rate of the weighted average price has been witnessing a downward trend since 2013 and has slowed down considerably from 6% in the first half of 2013 to a mere 1% in the second half of 2015.
The muted price growth of t hree years i ndicates that residential real estate i s f acing a strong price resistance against unattractive and unaffordable prices in NCR, says the report.
Greater Noida continued to see the maximum number of project launches in NCR, with a 40% share of the total new launches in the second half of 2015.
Affordable and mid- segment project launches saw a push in Ghaziabad with 79% of the total new launches falling in the less than 50 lakh category.
Gurgaon also contributed significantly to the new launches in NCR in the second half of 2015, taking up 27% of the overall pie.
A substantial 35% of the new launches fall in the 25 lakh to 75 lakh category. Gurgaon registered a 13% uptick in sales in the second half of 2015 compared to the same period in 2014.
Fresh launches in New Gurgaon and New Sohna provided buyers with new and affordable options in Gurgaon.
“The NCR residential market continued to disappoint. The year 2015 was the leanest year in terms of new launches, dropping to 63,460 units. Piling-up inventory and a low sales velocity led to the restricted supply. In the near future, the market will not see significant improvement. On the other hand, the office market was characterised by high value transactions. Absorption h e l d s t e a d y. G u r g a o n emerged as the most preferred business district in NCR, taking up 66% of the total absorption pie,” adds Rajeev Bairathi, executive director, North and Capital Markets, Knight F r ank India.