In­fra­struc­ture up­grades boost sen­ti­ment in NCR mar­kets

While pol­icy re­forms and in­fras­truc­tural im­prove­ments in Delhi re­vived buyer sen­ti­ment in the June-Sept pe­riod, apart­ment prices in Noida, Ghaziabad and Gur­gaon were under pres­sure

HT Estates - - HTESTATES - HT Es­tates Cor­re­spon­dent

Prop­erty prices per sq ft in Delhi NCR dropped by 1% in the July-Septem­ber 2016 quar­ter, but the rental market im­proved by 2% in the last one year. The real es­tate story of Noida and Greater Noida re­mained fraught with the high­est in­ven­tory over­hang in the coun­try, push­ing risk-averse in­vestors and wary home­buy­ers away. En­quiries, how­ever, posted slight im­prove­ment against the pre­vi­ous quar­ter due to on­go­ing Metro con­struc­tion work in the city, says 99acres Insite, a quar­terly re­port of the real es­tate web­site.

“The bot­tomed up cap­i­tal prices, at­trac­tive schemes by de­vel­op­ers and rate cuts by RBI fore­tell a pro­gres­sive story for Delhi NCR’s re­alty land­scape in the forth­com­ing quar­ters. Although ac­tive trans­ac­tions were lim­ited de­spite im­prove­ment in en­quiries, the cap­i­tal graph is an­tic­i­pated to be­come steady as end-users and in­vestors re­turn to the market. The rental sce­nario of Delhi NCR strength­ened year-on-year with trans­ac­tions wit­ness­ing a marked im­prove­ment, es­pe­cially in the mi­cro- mar­kets of Noida and Gur­gaon. An up­swing in of­fice space ab­sorp­tion and gov­ern­men­tal en­deav­ours to en­hance in­fra­struc­ture keep hopes for a brighter fu­ture alive,” says Narasimha Jayaku­mar, chief busi­ness of­fi­cer, 99acres.

Delhi NCR

Prop­erty prices per sq ft in Delhi NCR wit­nessed a min­i­mal down­trend of 1% in Ju­lySeptem­ber 2016, as com­pared to April-June 2016. The rental market im­proved by 2% in the last one year. While sev­eral pol­icy re­forms and in­fras­truc­tural im­prove­ments in Delhi re­vived buyer sen­ti­ment, un­sold stock and de­layed pro­ject de­liv­er­ies put cap­i­tal rates under im­mense pres­sure. Hous­ing prices in the city de­scended un­re­lent­ingly for the third con­sec­u­tive quar­ter in July-Septem­ber 2016.

In case of north, south, east, west Delhi and Dwarka, sev­eral pol­icy re­forms and in­fras­truc­tural im­prove­ments in Delhi re­vived buyer sen­ti­ment, un­sold stock and de­layed pro­ject de­liv­er­ies put cap­i­tal rates under im­mense pres­sure. Hous­ing prices in the city de­scended un­re­lent­ingly for the third con­sec­u­tive quar­ter in July-Septem­ber 2016. North Delhi was the only zone which posted growth, al­beit in­signif­i­cant, in July-Septem­ber 2016, as com­pared to April-June 2016. Dwarka, east Delhi and south Delhi wit­nessed a drop of 1% to 2% in prop­erty. The en­dur­ing pop­u­lar­ity of builder floors in Delhi en­sured a steady market for this prop­erty type, with Dwarka and West Delhi clock­ing an av­er­age in­crease of 2% in cap­i­tal val­ues. De­spite av­er­age val­ues of builder floors in south Delhi re­main­ing un­changed quar­ter- on- quar­ter, nearly 50% of the tracked lo­cal­i­ties recorded growth. In fact, builder floors in Malviya Na­gar, La­j­pat Na­gar III and South Ex­ten­sion-I boasted of an av­er­age in­crease of 5% in cap­i­tal price tags quar­ter-on-quar­ter.

Noida and Greater Noida

The prop­ery sce­nario in Noida and Greater Noida re­mained fraught with the high­est in­ven­tory over­hang in the coun­try, r i s k- averse i nvestors and wary home­buy­ers. Not sur­pris­ingly, av­er­age apart­ment val­ues inched down quar­teron-quar­ter.

T hough en­quiries posted slight i mprove­ment against the pre­vi­ous quar­ter, deals re­mained mod­est. In­fra­struc­ture en­hance­ments such as the on­go­ing work on Noida-Greater Noida Metro line could do lit­tle to cheer buyer sen­ti­ment in the twin cities. De­spite a spike of 14.19% in res­i­den­tial al­lot­ment rates in Noida as re­ported by the Noida Board, the av­er­age value of plots did not see any growth in July-Septem­ber 2016, vis-à-vis April-June 2016.

Only 17% of the to­tal num­ber of tracked lo­cal­i­ties fea­tur­ing res­i­den­tial plots re­ported an in­crease in cap­i­tal prices over t he l ast t wo quar­ters. The an­nounce­ment of Sa­ma­jwadi Af­ford­able Hous­ing Yo­jna and Noida Author­ity’s as­sur­ance to com­plete the pend­ing 300 m road went some way in buoy­ing up sen­ti­ments.

Ghaziabad

Ghaziabad’s land­scape mir­rored the over­all bleak re­alty sce­nario of Delhi NCR. The rise in the num­ber of en­quiries failed to bol­ster the city’s re­alty for­tunes, which saw prices descend­ing marginally in Ju­lySeptem­ber 2016, as com­pared to the pre­ced­ing quar­ter. The mi­cro-mar­kets of Sahibabad, Shas­tri Na­gar, Bhopura, Mo­han Na­gar and Kaushambi beat the slow­down blues with 1% to 7% rise in the val­ues of res­i­den­tial apart­ments quar­ter-on-quar­ter.

Av­er­age prices of builder floors in Ghaziabad dropped nom­i­nally in July-Septem­ber 2016, af­ter wit­ness­ing a stag­nant market in the quar­ter end­ing June 2016.

Ankur Vi­har and Surya Na­gar emerged as t he t op grossers, each wit­ness­ing a cap­i­tal rise of 2%. While the ap­pre­ci­a­tion in Ankur Vi­har can be at­trib­uted to an ar­ti­fi­cial in­crease in ‘ask’ prices, growth in Surya Na­gar has re­sulted from a hike in cir­cle rates.

The mount­ing cap­i­tal graph of land parcels in Ghaziabad ex­hib­ited the pop­u­lar­ity of res­i­den­tial plots over apart­ments and builder floors. This prop­erty type re­ported an up­trend of 2% in July-Septem­ber 2016, af­ter see­ing an ap­pre­ci­a­tion of 5% in April-June 2016.

Gur­gaon, Farid­abad

Home prices in Gur­gaon con­tin­ued to re­main under pres­sure de­spite gov­ern­men­tal ef­forts to im­prove in­fra­struc­ture and con­nec­tiv­ity and plans of es­tab­lish­ing a Gur­gaon Devel­op­ment Author­ity. Av­er­age weighted prices fell by 2% in Farid­abad in July-Septem­ber 2016. Merely 12% of the tracked lo­cal­i­ties in the city de­picted growth dur­ing the quar­ter.

When com­pared to the de­mand for apart­ments, Farid­abad re­ported a live­lier market for builder floors. Prices for this prop­erty type re­mained sta­ble in Ju­lySeptem­ber 2016, vis-à-vis AprilJune 2016.

PHOTO: SAKIB ALI

Av­er­age prices of builder floors in Ghaziabad dropped nom­i­nally in July-Septem­ber 2016, af­ter wit­ness­ing a stag­nant market in the quar­ter end­ing June 2016.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.