Delhi Ncr Residential March 2019 Marketbeats
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DELHI NCR RESIDENTIAL MARCH 2019 MARKETBEATS 4% 89% 60% DECREASE IN UNIT MID SEGMENT SHARE SHARE OF UNIT LAUNCHES LAUNCHES (QOQ) IN LAUNCHES Q1 2019 IN GURUGRAM Q1 2019 HIGHLIGHTS RENTAL VALUES AS OF Q1 2019* Average Quoted Rent QoQ Change YoY Change Short term Submarket Steady start for new launches in Q1 (INR/Month) (%) (%) outlook High-end segment The first quarter of 2019 started with the prime NCR residential markets recording 2,220 South-west 230,000 - 470,000 4% 17% new unit launches. Even though unit launches saw a drop of 4% q-o-q, the number was South-east 125,000 - 250,000 0% 19% 73% higher on a y-o-y basis, with prominent national and regional developers headlining South-central 180,000 - 310,000 3% 15% the launch activity. The mid segment accounted for 89% of the launches, with the rest Central 285,000 - 550,000 1% 4% Gurugram 65,000 - 210,000 4% 15% being high-end. Major activity corridors during Q1 were Dwarka Expressway, Sohna High-end Road, Old Gurugram, Golf Course Ext. Road and Noida Expressway. Sectors 150, 152 on Noida 50,000 - 100,000 0% 0% the Noida Expressway have been seeing new unit launches at regular intervals since Mid segment 2016, with this real estate development on the stretch promising enhanced liveability in South-east 100,000 - 200,000 0% 25% the future. South-central 120,000 - 230,000 3% 35% Gurugram 50,000 - 100,000 0% 15% Expediting stalled projects’ execution to restore Noida 30,000 - 50,000 0% 14% some lost customer confidence Insolvency and RERA interventions such as bringing in NBCC to execute stalled projects CAPITAL VALUES AS OF Q1 2019* Average Quoted Rate QoQ Change YoY Change Short term in the city (primarily in Noida) is likely to help restore buyer confidence in the real estate Submarket (INR/sf) (%) (%) outlook market. Another partnership between two private developers (ATS & Logix Group) will High-end segment target completion of delayed units of Logix Group through the project management South-west 33,000 - 53,000 4% 6% consultancy arm of ATS Group. Such measures augur well for the city’s residential market South-east 24,000 - 35,000 0% 0% which is saddled with huge unsold inventory in stalled or incomplete projects. Entry of South-central 28,000 - 45,000 4% 7% A Cushman & Wakefield Central 63,000 – 98,000 4% 7% Research Publication prominent developers with a good track record in the residential markets is also acting as Gurugram 10,000 – 16,200 0% 0% a boost to overall buyer sentiment and demand momentum. High-end Noida 7,000 – 9,000 0% 0% DATA Capital values and rents rise in core city areas INTO Mid segment ACTION Rents and capital values rose by 3-4% on a q-o-q basis in core city areas with demand in South-east 20,000 – 27,000 4% 4% the secondary market picking up amidst limited availability. However, prices in Gurugram South-central 24,000 – 35,000 4% 4% and Noida were largely range-bound with demand improving slowly. Gurugram 4,500 – 9,000 0% 0% www.cushmanwakefield.com Noida 4,000 – 6,500 0% 0% DELHI NCR RESIDENTIAL MARKETBEATS MARCH 2019 Rohan Sharma SIGNIFICANT PROJECTS LAUNCHED IN Q1 2019 Director, Research Tel: +91 124 4695555 BUILDING LOCATION DEVELOPER UNITS LAUNCHED RATE**(INR/SF) [email protected] Joyville Sector 102, Dwarka Expressway Shapoorji Pallonji Group 516 5,700 ATS Pious Hideaways Sector 150, Noida Expressway ATS Group 420 4,550 M3M Natura Sector 68, Sohna Road M3M Group 240 6,400 – 6,600 SIGNIFICANT PROJECTS UNDER CONSTRUCTION IN Q1 2019 ATS Triumph Sector 104, Gurugram ATS Infrastructure 428 Q2 2019 Sector 16B, Greater Noida RG Group 150 Q3 2019 RG Luxury Homes (West) SIGNIFICANT CONSTRUCTION COMPLETIONS IN Q1 2019 BUILDING LOCATION DEVELOPER ESTD. NO. OF UNITS UNIT SIZE (SF) Paras Dews Sector 106, Dwarka Expressway Paras Buildtech 722 1,385 – 2,355 Logix Blossom Zest, Phase 1 Sector 143, Noida Expressway Logix Group 550 840 – 920 Data collated from primary and secondary resources. Estimations are subject to change * Rental and capital values have been depicted only for key submarkets ** Quoted base capital value and does not include other charges such as Preferential Location Charges, External Development Charges, Internal Development Charges, etc. The above values for high-end segment are for units typically of 2,000-4,000 sf The above values for mid segment are for units typically of 1,600-2,000 sf Faridabad & Ghaziabad are not included in the new unit launches in Delhi NCR DATA ^ Affordable housing has been defined as units with a carpet area of 60 sq.mt in metros / 90 sq.mt in non-metros and value up to INR 45 lakhs INTO ACTION KEY TO SUBMARKETS High-end Segment South-west: Shanti Niketan, Westend, Anand Niketan, Vasant Vihar, etc. South-east: Friends Colony East, Friends Colony West, Maharani Bagh, Greater Kailash – I, Greater Kailash – II, etc. A Cushman & Wakefield South-central: Defence Colony, Anand Lok, Niti Bagh, Gulmohar Park, Hauz Khas Enclave, Safdarjung Development Area, Mayfair Gardens, Panchsheel Park, Soami Nagar, Sarvaodaya Enclave, etc. Research Publication Central: Jorbagh, Golf Links, Amrita Shergil Marg, Aurangzeb Road, Prithviraj Road, Sikandara Road, Tilak Marg, Ferozshah Road, Mann Singh Road, Sunder Nagar, Nizamuddin, Tees January Marg, Chanakyapuri, etc. Gurugram-Luxury: Golf Course Road Gurugram-High end: Golf Course Road, Mehrauli-Gurugram Road, Golf Course Extension Road, Sohna Road, Central Gurugram and Dwarka Expressway Cushman & Wakefield (NYSE: CWK) is a leading global real estate Noida: Sectors 34-37, 39-41, 44, 50, 51, 92, 93, 96-98, 128 and 133 services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with approximately 51,000 employees in 400 offices Mid Segment and 70 countries. In 2018, the firm had revenue of $8.2 billion across South-east: New Friends Colony, Kalindi Colony, Ishwar Nagar, Sukhdev Vihar, Kailash Colony, Pamposh Enclave, etc. core services of property, facilities and project management, leasing, South-central: Uday Park, Green Park, Saket, Asiad Village, Geetanjali Enclave, Safdarjung Enclave, Sarvapriya Vihar, Panchsheel Enclave, Navjeevan Vihar, etc. capital markets, valuation and other services. To learn more, visit Gurugram: Sohna Road (Sectors 38, 47-49), Southern Peripheral Road, New Gurugram, Dwarka Expressway and Sohna www.cushmanwakefield.com or follow @CushWake on Twitter. Noida: Sectors 50, 74-79, 82, 83, 110, 112, 115-121, 134, 135, 137, 143, 150, 151 and 168), Greater Noida and Yamuna Expressway www.cushmanwakefield.com Copyright © 2019 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources considered to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy..