Delhi residential launches up 13% to 9,289 units in 2022
Luxury units accounted for over half of the new launches in Q4.
According to Cushman and Wakefield, Delhi NCR recorded new launches of 3,688 units in the fourth quarter of 2022, an increase of 2.6X on a qoq basis and 36% growth on a yoy basis.
Total launches in NCR for 2022 were 9,289 units, a 13% growth as compared to 2021.
Here’s more from Cushman and Wakefield:
The luxury category, with launch price of above INR 13,000/Sf, accounted for 51% of the new launches in Q4 followed by the Mid Segment with a share of 49%. Gurugram constituted majority of the annual launches with a share of 82% across micromarkets such as Dwarka expressway, NH8, etc.
Reputed listed developers such as DLF and Godrej launched several projects, banking on a factor of trust among homebuyers, and these developers cumulatively had a 54% share in the total launches during the year in micro markets such as west Delhi, Noida Expressway, Golf Course Extension road (Gurgaon), NH8 and Dwarka Expressway.
Strong launches were happening under the Haryana government’s Affordable Housing Scheme up to the third quarter of the year, although no new launches were recorded in Q4.
Limited impact of pollution-induced ban on construction
As the air quality of Delhi NCR witnessed a dip in Q4, a ban on non-essential construction and demolition activities was imposed on private constructions under the graded response action plan, which had led to halt in the residential activity. The ban is expected to be lifted as the air quality improves in the upcoming months, thereby negating any significant impact on the residential market sentiment.
Capital values appreciated in Delhi NCR; Rentals witness a marginal increase
2022 has witnessed an upswing in demand owing to factors such as the circle rate and stamp duty reductions, and also higher return to office by employees. The momentum has continued despite the end of the fiscal rebates as reputed developers with a good track record continued to record strong growth in transactions. The high end and luxury segment has performed exceptionally, and this has led to appreciation in house prices.
In Q4, quoted capital prices appreciated in Gurugram across both mid and high end segments. Average capital values witnessed an increase of 7 – 12% on a qoq basis and 15-18% on a yoy basis. Rental rates recorded a qoq increase of 4-6%, and a yoy increase of approx. 8 – 10% in prominent submarkets of Delhi.
In the submarkets of Gurugram and Noida, a 7-8% escalation was witnessed in rental rates on a qoq basis and a significant increase of 15 – 20% on a yoy basis. The demand for rental properties is likely to remain stable or may increase marginally in the coming quarters owing to increased work from office ratio.