Present Real Estate Market Trend In Delhi NCR

The slow revival of the real estate industry in the previous quarter has affected the sales of real estate in the present quarter in Delhi/NCR. While Delhi and Gurgaon saw a marginal increase in average prices, property sales and prices plateaued in Noida, Greater Noida, and Ghaziabad. A few recent cases of a handful of builders facing bankruptcy in the area have impacted homebuyers' trust in the market.

Almost 20 new residential and commercial projects have been introduced in Delhi/NCR in the third quarter of 2019. Surprisingly, Faridabad topped the list, followed by Gurgaon and Greater Noida. Real estate developers in this area have targeted mid-segment and premium housing units. As the Government and developers struggle to sell their low-cost inventory, the affordable housing segment looks absurd.

Delhi NCR still holds 70 percent of the unsold inventory across metro cities, which equals to about two lakh residential units. Unfinished housing projects, particularly in the Noida and Greater Noida region, remains a concern for both developers as well as homebuyers. However, the coming quarters may see a tremendous growth in the real estate market, thanks to the mammoth loan of approx. Rs 1 lakh crore sanctioned by the Central Government to housing finance companies. 

NOIDA/GREATER NOIDA/GHAZIABAD

In the previous quarters, property sales in Noida and Greater Noida declined by more than 50 percent. Consequently, the average capital prices barely see any growth in these two regions. Only a handful of projects witnessed a little hike in values. Presently, Noida and Greater Noida have close to 2.5 lakh vacant residential units, because of which, the area is heavily depended on the rental market. Despite the high rental demand in Noida and Greater Noida, the average rentals witnessed a marginal increase of two percent in Jul-Sep 2019 as compared to the previous year.

Noida Sector 79 and Sector 150 have seen the maximum number of new projects and property inquiries. The capital prices in both sectors have risen by 3-4 percent. The launch of the Aqua metro line recently has further strengthened property prices in these regions. In the Ghaziabad region, Vaishali has seen the maximum rise in capital prices up to three percent.

GURGAON/FARIDABAD

While property inquiries kept rising in Gurgaon this quarter, sales of properties dipped significantly, as homebuyers look hesitant amid the lurching economy. The average capital prices in Gurgaon saw a minimal growth of one percent this year as compared to the previous year. 

Areas such as Golf Course Extension Road, Dwarka Expressway, and Sohna Road emerged out as the favorite destination of real estate developers. New projects remained limited to these localities. Five new projects have been introduced in the city in this quarter. New Gurgaon has seen a significant rise in the number of homebuyers investing in this locality. However, a vacant inventory of almost 25,000 units provides buyers a great scope for negotiation.

DELHI

Delhi's real estate market looked stable this year. While there was barely any change in the sale volume, the average capital values grew by a marginal one percent. Dwarka continued to be the busiest location in terms of the real estate activities in the city.

Metro connectivity, nearness to Gurgaon, and affordable residential stock are some of the main reasons for the thriving real estate market in the area. Dwarka sectors 8, 17, 19, and 22 topped the list in this quarter with a 2-3 percent rise in average property prices. The newly inaugurated Dwarka-Najafgarh corridor of the Delhi Metro (Grey Line) has made Dwarka metro station an interchange facility, making the location even more easily accessible.