HT Estates - - HTESTATES - HT Es­tates Correspondent

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.

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