Delhi NCR 2019 January-March
Total Page:16
File Type:pdf, Size:1020Kb
www.99acres.com INSITE REPORT dElhi NCR 2019 January-March 99acres India’s No.1 Property Portal 99acres India’s No.1 Property Portal INSITE : DELHI NCR 3 From CBO’s Desk With sales volume and new launches beginning to improve, Jan-Mar 2019 attested the recovery mode for Indian real estate. Barring Chennai and Kolkata, where demand-supply mismatch Contents and RERA inefficiencies kept the sentiment low, all other metros reported improvement in housing demand and posted marginal hikes in average property values. Interestingly, Hyderabad, riding the From CBO’s Desk Maneesh Upadhyaya Chief Business Officer wave of commercial expansion and competitively priced inventory, 03 CBO’s perspective on current outperformed other cities by scoring a three percent hike in average market sentiment 99acres.com weighted capital ‘asks’, QoQ. Ambiguities pertaining to the exclusion National Outlook of ITC benefits from GST on under-construction units kept prospective 04 Snapshot of real estate ambience buyers uncertain about the real benefit of GST reduction. across top 8 metro cities Noticeably, MMR tops the inventory overhang charts with over Market Indicators 2 lakh residential units waiting for buyers. Delhi NCR follows closely, 05 Changes in capital rates and inventory where around 70 percent of the 1.42 lakh unsold units are located in status QoQ; and rental values YoY Noida and Greater Noida. The total unsold units across top eight Market Movers metros stand at around 6.5 lakh with the least in Hyderabad. 06 News that impacted Delhi NCR's While the sector awaits the results of General Elections realty market in Jan-Mar 2019 2019 and further progress towards PMAY (U), the 99acres Outlook financing crunch faced by a section of builders 07 99acres’ perspective on current could be a serious thorn in an otherwise market sentiment positive outlook for FY 2019-20. Methodology Affordable sector is likely to see Noida, Greater Noida, Ghaziabad The Insite Report by 99acres.com captures new supply which would cater Key highlights - Noida, Gr. Noida and 08 the quarterly capital trends and the annual to the colossal demand in Ghaziabad's Capital and rental market in Jan-Mar 2019 rental analysis of residential apartments the segment. in key real estate markets – Delhi NCR, Mumbai Gurgaon and Faridabad Metropolitan Region (MMR), Bangalore, 10 Key highlights - Gurgaon and Faridabad's Pune, Chennai, Hyderabad, Kolkata and capital and rental market in Jan-Mar 2019 Ahmedabad. In order to assess the prevailing sentiment, the report delves deep into demand Delhi and supply of properties across varied budget 12 Key highlights - Delhi's capital and segments and occupancy stages. While rental market in Jan-Mar 2019 demand is a function of queries received, supply is based on property listings posted on Annexures 14 99acres.com in Jan-Mar 2019. 99acres India’s No.1 Property Portal INSITE : DELHI NCR 5 MARKET INDICATORS DELHI NCR NATIONAL OUTLOOK HOME BUYING SENTIMENT KOLKATA Home buying sentiment remained upbeat; however, uncertainty regarding AHMEDABAD the actual benefit of the revised GST excluding ITC component, and the upcoming General Elections deferred home sales and new launches. 99acres.com data reveals that 45 percent of the demand is for affordable homes priced within Rs 50 lakh. MUMBAI PROPERTY PRICES PUNE Despite improving sales, property rates maintained status quo in Delhi NCR, Chennai, Pune and Kolkata, and scaled up by a marginal one percent in HYDERABAD Bangalore, Mumbai and Ahmedabad, QoQ. Hyderabad led all cities with a three percent rise in average property values. Improved buying sentiment and trimming unsold inventory might propel prices in the subsequent quarters. RENTAL LANDSCAPE The rental market gained on account of cautious buyer approach for yet BANGALORE CHENNAI Capital Values another quarter. Excess ready stock in Gurgaon and Greater Noida kept rental Rental Values ‘asks’ under check in Delhi NCR. Other metros reported a three percent uptick in rental values, each, YoY. The growth in the segment is likely to continue for Supply a few more quarters until the capital landscape recovers completely. Increase by 2-4 percent Increase by 0-1 percent SUPPLY Status quo Limited new launches led to improved absorption of residential stock across Decrease by 0-1 percent cities. Unsold inventory levels dipped by 10-20 percent in Delhi NCR, Mumbai, Bangalore and Chennai between H2 2018 and H2 2017. Hyderabad and Decrease by 2-4 percent Ahmedabad saw inventory stock reducing by up to 40 percent. The average ‘quarters to sell’ (QTS) now stand at 10.2, as against 11.2 a year ago. * Capital values represent quarterly change * Rental values represent yearly change * Supply is basis properties listed on 99acres.com 99acres India’s No.1 Property Portal INSITE : DELHI NCR 7 99ACRES OUTLOOK Market Movers An uptick in the property sales momentum in the second half of 2018 continued in the Jan-Mar 2019 quarter in Delhi NCR. While the suburban markets of Gurgaon Noida gets two functional metro lines Infrastructure upgrade takes to and Greater Noida spearheaded the sales charts, the capital city of Delhi displayed a rather dull buyer sentiment in the wake of limited new inventory across zones. The two much-awaited metro routes in the forefront Amidst improving sales, unsold inventory in Delhi NCR dipped to 1.42 lakh Noida – Aqua line linking Noida and Greater Several infrastructure projects were seen units in Q1 2019, 15 percent lower than the 2017-level of 1.66 lakh units. Now, Noida, and the extension of the Blue Line to taking shape in the quarter. While the the quarters to sell (QTS) the residential stock in the city stand at 15, unlike 17 Electronic City – saw the light of the day. government opened an elevated expressway a year ago. The developments are expected to strengthen to the Delhi airport, it also rolled out plans to housing demand in areas falling along the connect Meerut and Faridabad via a high- Under-construction units by reputed builders garnered better response than the route.The metro authority also approved the speed corridor. Additionally, there are plans to preceding months. The revision in the Goods and Services Tax (GST) regime, 104 km-long Phase IV of Delhi metro, extend the Ashram flyover up till DND Flyway however, came as another short-term hurdle in the revival of the segment. In a bid for which the Delhi Development Authority to ease traffic congestion along the stretch. to reap the benefits of reduced GST rates, homebuyers, once again, opted to (DDA) has already allocated a sum of Rs wait until April 2019 to finalise property deals. Ghaziabad and Faridabad regions, 500 crore. Further, the Gurgaon authority New city under wraps in Faridabad which hold the maximum affordable housing inventory across Delhi NCR, bore the progressed in its plan to connect Dwarka As a part of the Panchgram Plan envisioning maximum brunt after the GST rate on the segment was slashed to one percent Expressway by metro. five new cities along the Kundli-Manesar- from eight percent. Palwal (KMP) Expressway, the Haryana UP RERA takes over stuck real government approved the development The addition of over 6,000 new units in H2 2018 paved the way for a rigorous 2019. Gurgaon alone accounted for over 2,000 new unit launches in Jan-Mar 2019, estate projects of a new city in Faridabad. The work especially in New Gurgaon and Dwarka Expressway. Gurgaon and Greater Noida In a first-of-its-kind move, the Uttar Pradesh on the Master Plan is already together accounted for over 75 percent of the new supply added in Delhi NCR in Real Estate Regulatory Authority (UPRERA) underway. The city would be Jan-Mar 2019 and its preceding quarters. With Land Pooling Policy, Transit Oriented took up the construction of seven realty constructed over 56,000 Development (TOD) and expansion of Delhi metro on the cards, the city’s realty is on projects in Noida, Greater Noida region, which hectares of land in a road to recovery. were to be delivered by 2013. The Authority Faridabad. has also resolved over 4,500 complaints, of the total 11,550 cases, till date. Price movement in key micro-markets LOCALITY AVERAGE ‘ASK’ RATE (PER SQ FT) QOQ CHANGE YOY CHANGE Vaishali 5,100-5,900 -1% 1% Vasundhara 4,300-5,200 -1% -2% Raj Nagar Extension 2,800-3,200 -2% -2% Sector-78, Noida 4,500-5,500 1% 5% Sector-57, Gurgaon 5,900-7,000 -1% -1% Vikas Puri 7,400-9,000 4% 1% Pitampura 9,200-11,9000 3% 1% Paschim Vihar 8,100-10,000 -1% 4% Vasant Kunj 11,900-14,000 -1% 0% Crossings Republik 2,700-3,300 -1% -2% * Average ‘ask’ rates have been calculated as per listings posted on 99acres.com in the current quarter 99acres India’s No.1 Property Portal INSITE : DELHI NCR 9 NOIDA, KEY HIGHLIGHTS GREATER SUPPLY OF Property demand in Noida remained tepid as debt-laden developers The launch of the two metro lines – Aqua line till Greater Noida and the APARTMENTS struggled to complete pending projects. Greater Noida, however, extension of the Blue line to Electronic City – was touted to be a game-changer DEMAND SUPPLY NOIDA AND reported the maximum sales in the affordable segment (under Rs 50 for the city’s real estate landscape. The metro lines pushed ‘ask’ prices in UC RTM UC RTM lakh), across Delhi NCR. In line with the previous quarters, housing Sectors 73, 77 and 120 in Noida, and Sector Pi, Chi 5 and Mu in Greater Noida GHAZIABAD demand inclined towards ready homes. Transactions, however, by 2-5 percent, QoQ. The progress on the upcoming Jewar Airport, too, was remained meek as nearly 25,000 ready units lacked completion closely watched as investor interest rose in areas along Yamuna Expressway.