The National Capital Region (NCR) witnessed more than 1 lakh unsold units in 2018, which will take about three years to sell, according to a recent report by Knight Frank India.
Low investor interest and an inventory overhang has arrested the growth in prices in the region. The market has seen a slowdown in prices since 2013 and the scenario has not changed ever since, the report added. The region however witnessed a drop of 15 percent in the unsold inventory in comparison to 2017.
Meanwhile, new launches in NCR registered a 35% growth in 2018. Approximately 52% of these new launched units were in Gurugram followed by Greater Noida and Ghaziabad.
According to the report, the residential market in NCR showed a revival in demand in lower ticket sizes and affordable segment, specifically in Greater Noida and Ghaziabad. Sales in NCR improved with an 8% year-on-year increase in demand.
With 50% of the overall sales, Greater Noida took the majority share of the demand in 2018 followed by Ghaziabad and Gurugram at 19% and 17%, respectively.
“An analysis of the residential market in NCR clearly shows a revival of new launches in the lower ticket sizes and affordable segment. This trend has been particularly witnessed in the Greater Noida area. There is shift in the market towards housing available in the mid segment of Rs 5-10 million bracket,” said Mudassir Zaidi, Executive Director–North, Knight Frank.
The commercial segment in NCR recorded a revival in demand led by co-working players. The market registered a growth of 14% compared to 2017. Gurugram took 66% share of the total transaction activities happening in the region.
“The commercial market recorded a revival that was led by co-working companies. The other service sector, including co-working occupiers, accounted for 70% of the leasing activity in H2 2018,” said Zaidi.
The dearth of quality office supply in key locations in NCR put an upward pressure on rentals in H2 2018, said the report.
Economic Times, Delhi/NCR