There are 31,000 residential units had launched during first half of financial year 2012-13 at Delhi NCR, registering a dip of 22% compared to the first half of financial year 2011-12.
The market shows a cautious outlook as sales have seen a dip. According to ‘quarters to sell’ analysis of Knight Frank India, which assesses the market health by comparing construction and sales time lines, it is observed that unsold inventory levels are showing an upward trend.
Rising property prices and high interest rates have also deterred genuine buyers from taking decisions
The residential demand has remained strong in the NCR, despite being characterized as a speculative market owing to the predominance of investors.
However, recent revision of the circle rates is expected to bring more transparency in the market. The realty market of Gurgaon has had the highest number of launches in first half of financial year 2012-13 constituting about 33% of the total launched units in the NCR during this period.
Almost 45% of the units under construction in the NCR market is expected to be ready for possession by the end of 2013, as a bulk of these projects were launched in 2010.Nearly 56% of the units under construction fall in Noida and Greater Noida. Gurgaon constitutes nearly 20% of the units under construction.
The NCR residential market had a dip in absorption in H1 of financial year 2012-13 compared to H1 of financial year 2011-12.The residential sales usually go up during the festive season and towards the end of the year due to the discounts offered by the developers.
It remains to be seen if absorption levels will pick up in second half of the financial year. Nearly 71% of the absorption has been in the affordable segment with a ticket size less then Rs 50 lakh in H1 of financial year 2012-13.
Anshuman Magazine, the CMD of CBRE South Asia Pvt Ltd, says: “The key markets in India recorded steady demand in 2012,as international and domestic retailers continued to open stores along the high streets and in prime malls despite concerns over the domestic economic outlook. The developers were more focused on reducing vacancy levels in existing projects than launching new projects.”
Anil Sharma, the chairman and managing director of Amrapali Group, says: “In the NCR, we have world-class residential projects like Amrapali Golf Homes, Amrapali Leisure Valley, Amrapali Leisure Park, Amrapali Verona Heights, Amrapali Dream Valley, Amrapali Dream Valley-2, Amrapali Centurion Park and Amrapali Terrace Homes; the average rate of these flats is around Rs 3,000 per sq feet while the villas cost between Rs 6,000 and Rs 7,000 per sq feet.”
“In 2013, we are planning to launch around eight projects in Noida and Greater Noida West; of these two projects are in the luxury segment, while six projects are in the mid- and affordable segment. Amrapali Silicon City and Amrapali Platinum will come up with new towers with world-class facilities. Verona Heights was our eco-friendly residential project launched in 2012, over 46 acres, with 2,400 apartments in phase 1.We will construct nearly 13,000 flats over five phases here. The project comprises 2-, 3- and 4BHK highrise apartments, whose areas range between 975 sq ft and 2,135 sq ft, “Sharma said.
David Walker, the executive director of SARE Homes, says: “As a customer-centric company, SARE Homes always scouts for opportunities to make home-buying easy and hassle-free. The present scheme, in association with the State Bank of India, will further facilitate home-buying for a large number of customers.”
Rakesh Yadav, the MD of Antriksh Group, says: “Regions like Noida, Noida Expressway and Greater Noida West are expected to have a flourishing market with a number of new projects in 2013.The result of closely observing the market and rising up to the consumers’ expectations will decide the shape of the realty market in the year ahead.”
R K Arora, the CMD of Supertech Limited, says: “Despite issues like land agitation, delayed projects and high interest rates that we have faced throughout the year, response from the customers has been good and encouraged the industry to continue building in the region in the future as well.”
Neeraj Gulati, the MD of Assotech Realty, says: “The real estate sector in India is ready to take a big leap in 2013.The coming year would carry a new set of aspirations and hopes and holds significance for the housing sector. Raising curtains on FDI and widening of ‘external commercial borrowing’ to an extent of $3 billion would bolster the growth for the retail and residential realty segment in 2013.”
Navin Raheja, the CMD of Raheja Developers, says: “Year 2012 was reasonably buoyant in terms of inventory sales. Gurgaon and its surroundings areas emerged as hot investment destinations as well as the first choice of end users, which helped in the sales process considerably.”
“With projects like Raheja Revanta, Raheja Aranya City, Raheja Oma, and Aranya City being nearly sold out, we are planning to launch our signature residential-cum-commercial-cum-retail project in Delhi; two group-housings and farmhouse projects in Gurgaon are also in the pipeline. We expect the sales velocity to increase in 2013 and it should augur much better for the industry as a whole, “Raheja said.
As a part of the New Year offer, SARE Homes, in association with the State Bank of India, is offering a customer friendly scheme under which the customer needs to pay nothing for three years, after paying the first 20% for booking the apartment in its Springview Heights, a new project in its 88.35 acre aspirational township on NH-24 in Ghaziabad.
M3M India recently launched M3M Woodshire along the Dwarka Expressway; the developer says the project will be a haven for luxurious living for its residents.
Sobha Developers, a Bangalore-based real estate company, recently ventured into the northern region of the country with their pioneer project, Sobha International City, in Sector 109 in Gurgaon.
Avalon Group has successfully launched two new projects, Avalon Regal Court and Avalon Royal Park in Bhiwadi. “Bhiwadi is the fastest growing industrial town on the outskirts of Delhi. With places in the NCR and Gurgaon practically going out of reach of the common man, the choice of buyers has zeroed in on Bhiwadi. The town has full complement of social and physical infrastructure along with civil amenities in place, and has emerged as a credible alternative to Gurgaon, “Ajay Aggarwal, the director of Avlon Group,said.
Ansal Housing has come up with Ansal Heights in Sector 92 and Ansal Estella in Sector 103 on the Dwarka-Gurgaon Expressway.
Chintels India Ltd is going to launch Chintels Serenity in Sector 109 in the New Year; the project is over 12.3 acres and is a luxurious 1.1 million sq ft high-rise apartment complex in the heart of New Gurgaon.
Falcon Realty Services expects to deliver affordable housing units of its Global Eco City project in Kotkasim (Rajasthan) along the NH-8 in the New Year, according to the developer.