SWOT Analysis
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99acres India’s No.1 Property Portal Insite JUL-SEP 2016 Delhi NCR 2 | DELHI NCR 99acres India’s No.1 Property Portal Index 03 From Narasimha’s Desk 04 Delhi NCR vs. Other Cities 05 Market Movers 06 Delhi NCR SWOT Analysis 07 Capital and Rental Analysis – Delhi 09 Capital and Rental Analysis – Noida and Greater Noida 11 Capital and Rental Analysis – Ghaziabad 13 Capital and Rental Analysis – Gurgaon, Faridabad, Bhiwadi and Dharuhera 16 Demand-supply Analysis 20 Annexures Methodology 99acres Insite presents a comprehensive analysis of the top metro cities - Delhi NCR, Mumbai, Bangalore, Pune, Chennai, Hyderabad, Kolkata and Ahmedabad. It captures the capital and rental trends of various property types, and delves into the demand and supply equation of residential inventory. The supply analysis is a function of variations observed in the number of listings posted on 99acres.com. Considering the volatile nature of the housing sector, price points mentioned here might vary with the market dynamics. 3 | DELHI NCR 99acres India’s No.1 Property Portal From Narasimha’s desk... he Indian real estate market has been undergoing a metamorphosis with positive developments such as RBI rate cuts, investor-friendly policies and attractive discounts by the developer fraternity. Consumers, Twho were so far diffident, have now started capitalising on these developments, leading to improving sales volume across major metros. Add to this, government initiatives, increased mobile usage and technological upgrades are also acting as growth stimulators for the real estate sector. The forthcoming quarters are anticipated to witness a definitive alteration in the demand-supply equation with capital prices bottoming up and inventory overhang shrinking gradually. Most of the metros are witnessing major infrastructure overhauls and the government has introduced policies favouring the homebuyer community, projecting a revival in housing demand. Narasimha Jayakumar Chief Business Officer 99acres.com 4 | DELHI NCR 99acres India’s No.1 Property Portal Delhi NCR vs. Other Cities Housing sector poised for growth backed by infrastructure overhauls D N MDBD T MMB DBD N Raj Nagar Extension 0 BNG Mayur Vihar-I Vikas Puri 1 0 NN Noida Extension Vasant Kunj 1% 1 Sector-78, Noida Capital Values 3 Rental Values Golf Course Ext. Road Nehar Par Supply 0 4 * Capital values represent quarterly change * Rental values represent yearly change Sohna Road * Supply is basis properties listed on 99acres.com 2 5 | DELHI NCR 99acres India’s No.1 Property Portal Market Movers Jul-Sep 2016 Creation of an escrow account To ensure that developers do not divert homebuyers’ funds to other projects, the Greater Noida Authority plans to open an ‘escrow account’. The move is aimed at winning buyers’ confidence, who have suffered due to incessant project delays. Gurgaon to have a dedicated development authority A dedicated development authority in Gurgaon is expected to ensure smooth functioning of the Millennium City. The process of establishment will start from November 1, 2016, on the occasion of Haryana’s Golden Jubilee celebrations. Circle rates surpass market values in NCR Several pockets in Delhi NCR saw circle rates exceeding market values. In such localities, property registrations are not possible on the transaction value as stamp duty has to be paid on the prevailing circle rates. Possession of 45k flats in Noida-Greater Noida by 2017 CREDAI UP has stated that developers have handed over 25,070 units in the current fiscal year, and an additional 45,000, would take the total possessions to over 70,000 by the end of 2017. Ghaziabad gets Rs 190 crore for infra upgrades Ghaziabad Development Authority (GDA) has been sanctioned Rs 190 crore for 44 infrastruc- ture projects, with a focus on road development and upgradation. 6 | DELHI NCR 99acres India’s No.1 Property Portal SWOT Analysis Strength Weakness • Improving office • Infrastructure space absorption projects which in the first three could have eased quarters of 2016 commutation on indicates a silver the Noida lining in Delhi NCR’s Expressway were real estate story. deferred to fund Interestingly, Noida the Greater Noida metro. These include saw higher absorption with large ticket two elevated roads – Master Plan-I and deals as compared to Gurgaon, which Dadri road – and underpasses at Mamu- witnessed steady transactions. ra, sectors 47-100 and sectors 71-72. • Having received funds worth Rs 1,000 • Dissonance between Haryana and crore from the Centre recently, the Delhi governments over land acquisition Noida-Greater Noida metro corridor hampered growth on Dwarka Express- holds great promise of transforming the way. Construction activity continued to twin cities’ realty landscape by 2017. be stalled along the stretch. Opportunity Threat • Fast-tracking the • Delhi NCR’s realty groundwork of the continues to remain proposed Jewar in doldrums as Airport instils hopes inventory overhang of revival in Greater rose to over 2.6 lakh Noida’s realty. units. New launches in the affordable • DDA’s plan to segment in Gurgaon has inflated the convert Dwarka into a smart sub-city has existing unsold stock. the potential to promote adequate infrastructure in this high-density area, • The possibility of eliminating power while ensuring last-mile connectivity. crisis in Ghaziabad, through the develop- ment of 33/11 KV sub-stations supplying • The under-construction Kundli-Mane- electricity all through the day, has been sar-Palwal Expressway will connect stalled due to issues of land acquisition. Faridabad, Gurgaon, Palwal and Sonipat The power crisis will eventually worsen if districts and decongest NCR. the sub-stations are not established. 7 | DELHI NCR 99acres India’s No.1 Property Portal Delhi Capital Analysis • While several policy reforms and • The enduring popularity of builder floors infrastructural improvements in Delhi in Delhi ensured a steady market for this revived buyer sentiment, unsold stock property type, with Dwarka and West and delayed project deliveries put capital Delhi clocking an average increase of two rates under immense pressure. Housing percent in capital values in Jul-Sep 2016 as prices in the city descended for the third against Apr-Jun 2016. consecutive quarter in Jul-Sep 2016. • Despite average values of builder floors • North Delhi was the only zone which in South Delhi remaining unchanged posted a growth, albeit insignificant, in Jul- QoQ, nearly 50 percent of the tracked Sep 2016. Dwarka, East Delhi and South localities recorded growth. Builder floors Delhi witnessed a drop of 1-2 percent in Malviya Nagar, Lajpat Nagar III and in property prices, while values in the South Extension I boasted of an average western zone plateaued. increase of five percent, each, in capital price tags in Jul-Sep 2016. • Beating the overall slowdown blues, Narela in North-West Delhi, recorded a • Pitampura in the North led the surge of four percent in average weighted capital price movement with a housing prices. Becoming a part of Delhi’s massive spike of seven percent, QoQ. 2021 Master Plan, at the same time, being The positive sentiment in the locality, the third planned sub-city after Dwarka despite the recent demolition of and Rohini, has leveraged the locale, unauthorised structures, can be which is also fulfilling Delhi’s need for attributed to some improvement in affordable homes. the civic infrastructure. APARTMENTS BUILDER FLOORS 4 7 4 7 6 3 5 5 5 4 4 2 3 3 2 Vasant Kunj Shalimar Bagh Patparganj 1 Sector-13, Rohini 1 1 1 1 1 Narela Pitampura Vishnu Garden South Extension I Lajpat Nagar III Malviya Nagar hange 0 hange 0 oality oality * %Change represents quarterly capital movement 8 | DELHI NCR 99acres India’s No.1 Property Portal Delhi Rental Analysis • Delhi’s lacklustre capital market did • The average rental rates for builder floors not rub off its influence on the rental in Delhi remained stagnant, YoY. Ample landscape, certain zones of which supply and increasing preference for continued remaining cheerful. Dwarka, apartments kept growth under pressure. North and West Delhi clocked a median rental rise of three percent, each, over • At a zonal level, Dwarka, East and North the last one year. Delhi witnessed rental values of builder floors escalating by 1-4 percent, YoY. • Dwarka held the baton of flourishing Dwarka’s rental landscape flourished rental charts, housing all the top due to the infrastructural enhancements performing localities. Rental rates of on the radar, recording a growth of four apartments in sectors 5, 7, 10, 11 and percent, YoY. 19 recorded a rise of eight percent, each, YoY, on the back of the progress • South Delhi’s rental market depicted on Dwarka Expressway and the area’s a downtrend, with only 37 percent of comparative affordability to Gurgaon. the tracked localities clocking a yearly growth. Factors such as water shortage • Rental ‘asks’ in East and South Delhi and contaminated water supply in certain slipped by 3-4 percent, YoY. However, localities led to adverse sentiments. Vasundhra Enclave and Mayur Vihar I in East Delhi reported a robust market • Nevertheless, rents in the upmarket areas with an annual growth of 2-3 percent, of Greater Kailash II and Lajpat Nagar driven by a high liveability index and soared by 6-10 percent on account of strong social infrastructure. recent infrastructural overhauls. APARTMENTS BUILDER FLOORS 8 8% 8% 8% 8% 8% 11 10 10 7 9 8% 6 8 5 7 6 6 6 4 5 5 3 4 3 2 2 1 Sector-7, Dwarka 1 Sector-5, Dwarka Sector-19, Dwarka Greater Kailash II Ramesh Nagar Lajpat Nagar I Nirman Vihar Model Town Sector-10, Dwarka Sector-11, Dwarka hange 0 hange 0 oality oality * %Change represents yearly rental movement 9 | DELHI NCR 99acres India’s No.1 Property Portal Noida and Greater Noida Capital Analysis • The real estate story of Noida and Greater • Despite a spike of 14.19 percent in Noida remained fraught with the highest residential allotment rates in Noida, the inventory overhang in the country, risk- average value of plots did not see any averse investors and wary homebuyers.