India’s national capital region has emerged as the largest residential market in the country, a research report by realty firm Knight Frank pointed out today.
It said that by sheer volume of residential units launched, NCR currently has higher number of units compared to the other five metros of Mumbai, Chennai, Bangalore, Kolkata and Hyderabad put together.
“NCR did not witness a steep fall in project launches during last year despite the global economic slowdown. Ghaziabad contributed to nearly 34 percent of the number of project launches in FY 2012, followed by Gurgaon and Noida,” said Samanthak Das, National Head – Research at Knight Frank.
Despite being in the news for all the erroneous reasons — be it threat of an oversupply situation, huge project delays, lack of affordable housing or land acquisition, NCR’s market still remains one of the most stable markets in India, he added.
Here are the highlights of the report:
• Nearly 86,000 residential units entered the market in FY 2012.
• Majority of the launches took place on the Dwarka Expressway. Gurgaon Greens by Emaar MGF, Unitech South Park, Puri Diplomatic Greens and BPTP Amstoria were some of the prominent projects launched in New Delhi.
• Developers were able to gauge the pulse of the market and launched more affordable and mid-segment projects than premium projects in FY 2012. Nearly 40 percent of the units launched, fall in the Rs 25-50 lakh n ticket sizes.
• As of March 2012, nearly 5, 00,000 units are under various stages of construction in the NCR market.
•About 50 percent of the upcoming supply in the NCR market is expected to be ready for possession by 2013, as a bulk of projects were launched towards the end of 2009 and early 2010.
• The vacancy levels have improved and stand at 36 percent in Q4 2012 as compared to 40 percent in Q2 FY 2012.
• About 78 percent of the unsold inventory is concentrated in Noida and Greater Noida, due to the start of a number of big projects here, including Noida Extension generated a controversy over land acquisition.
• Based on the average sales velocity of 2012, the unsold inventory in all the
markets will take approximately four quarters to be fully absorbed.
• Market shows a positive outlook as sales have picked up in Q4 2012. Even though the quantum of units launched in the NCR market is very high, analysis shows that unsold inventory will be absorbed two quarters ahead of the completion based on long term sales velocity at an aggregate level.
• Delhi has further seen an increment in prices in the residential areas of Anand Niketan, Friend’s Colony, Maharani Bagh, Greater Kailash and Green Park due to the hike in circle rates for the second time by the Delhi State Cabinet.