With its galloping economy and resounding growth spanning two decades, Gurugram has earned itself the title of the ‘Millennium City’ and has become the hotbed of Real Estate development on account of the strong buyer interest especially in New Gurgaon, Dwarka Expressway and Sohna micro-markets. Proximity to the national capital and ample availability of land spurred the growth trajectory of Gurugram which today contributes about 55% of the overall new launches (in NCR) in 2019 while accounting for 28% of new homes sales which recorded a rise of 12% over 2018. New residential unit sales saw a resilient 12% increase at 13,244 units in 2019 while developers in the city added about 19,346 new units, a staggering rise of 72% over 2018, helping the city register its highest supply since 2016; arguably a harbinger of the glory days that Gurugram has witnessed in it’s modern past.
Of the new launches, a sizeable 53% of the total units were launched in the affordable segment (<INR 40 Lakh) followed by mid-segment (INR 40 Lakh-INR 80 Lakh) and luxury segment (INR 80 Lakh- INR 1.5 Crore) with 19% and 14% share respectively. Noteworthy is the fact that the affordable segment witnessed an almost 100% increase in new launch units when compared to 2018 with a majority of these launches skewed towards Sohna micro-market which enjoys a lower basic selling price currently. As job opportunities continue to supplement the continued influx of migrant population from neighbouring cities into Gurugram, leading real estate developers are launching residential projects catering specifically to this growing populace.
Greater Noida constituted 32% of the total homes sold in Delhi NCR at 15,148 units. At the same time, there were 4,093 new units which were launched in 2019, an increase of 34% over 2018. The average quoted basic selling price stood at Rs 3,340 per sq.ft. Unsold inventory witnessed a drop of 20% over 2018 and stood at 45,462 units. Greater Noida West, Yamuna Expressway and Sector-PI witnessed the most number of launches in 2018.
Mr Amit Sinha, Chief Operating Officer at TRESPECT, a Pan-India residential real estate advisory firm, explains “Gurugram is clearly the epicentre of all infrastructure activity in the Delhi NCR region and this is positively translating into a clear rising sales momentum especially in the top three micro-markets of New Gurugram, Dwarka Expressway & Sohna. Despite an overhanging unsold inventory level of 57,944 units, it is important to note that nearly 40% of this is attributed to the affordable segment which is seeing both, increased demand and supply, of new units which should help to pare down inventory levels in 2020. Over the next two years, several under-construction units are slated to be ready for possession and with a massive impending infrastructure push that it is witnessing, Gurugram is definitely a market to watch out for in 2020.”
He added, “Being an affordable market, Greater Noida saw many launches in 2015 and 2016. However, post regulatory changes in 2016 and early 2017, the new launch supply took a backseat. Not to mention, there was enough supply in the market.”
Key Insights for Gurugram:
- Gurugram has cemented its status as the hotbed of Real Estate development within the NCR region.
- New Gurugram recorded the highest supply of units at 8,084 units across varied budget segments becoming the leader amongst the micro markets majorly on account of its strategic location, connectivity through NH 48, and the upcoming Dwarka Expressway which are expected to further attract new launch supply in 2020 too.
- Gurugram has started showing positive growth in sales volume and as construction progresses on the Dwarka Expressway, a similar positive price movement and sales trend is anticipated over the next three to four quarters.
Key Insights for Greater Noida:
- With ample availability in the mid and affordable segment, sales have been increasing at a consistent pace. In fact, in 2019, Greater Noida recorded maximum sales in the entire NCR.
- With sales volume increasing, the unsold inventory has come down. In 2019, the unsold inventory reduced by 20% as against 2018.
- In 2019, the average price in Greater Noida stood at INR 3,318 per sq. ft.
- Majority of the new launch supply in Greater Noida was skewed towards three micro-markets. These include Greater Noida West, Yamuna Expressway, and Sector- PI.