Delhi residential launches plummet 60% to 1,022 units in Q3

A majority of the launches were in Gurugram.

Excluding affordable housing projects, new residential launches in Delhi NCR dropped 60% q-o-q and 65% y-o-y to 1,022 units in the third quarter of 2022. 

According to Cushman and Wakefield, Gurugram accounted for the majority of the new launches with a share of 87%, mostly in Golf Course Road, SPR and Golf Course Extension Road, followed by South Delhi. 

Here’s more from Cushman and Wakefield:

Amidst back-to-back projects by DLF in the low-rise format developments, the supply segment is driven by independent floors in Gurugram, and this sector accounted for 53% of cumulative launches in the quarter. 

The luxury segment accounted for a major share of 57% in the NCR residential market in Q3, followed by the mid segment with 43% of the quarterly launches. The quarter witnessed launches by established developers, similar to previous quarters, demonstrating buyer preference for projects associated with developers with strong brands and superior execution records. 

According to industry sources, some of the newly launched projects have recorded significant traction within a short period of launch. For instance, Puri Aravallis got sold out within two weeks of its launch. Moreover, DLF Grove, a luxury project, also received a fantastic response within the first week of its launch.

Delhi removes circle rate rebate; Haryana moves ahead with affordable housing projects

In terms of policy developments in the Delhi NCR residential market, the end of circle rate rebate by Delhi with effect from July 1st was significant. Property transactions are expected to become costlier with Delhi government’s decision to end the 20% reduction on circle rates and the approval on municipal corporation’s proposal to hike the property transfer fees. 

On the other hand, Haryana government moved ahead with the launch of Zara Romain Sector 95B Gurugram under the Affordable housing scheme, which is aimed at providing access to low-cost housing for the population.

Capital values appreciating with festive season enhancing housing demand 

Delhi NCR’s residential market sentiments in terms of demand, are witnessing a further improvement with the festive season around the corner. Average capital values witnessed an increase of 6 – 10% on a qoq basis and 12-15% on a yoy basis in Q3. Prices are on an upward trajectory in micro-markets such as Golf course road, Extension road in Gurugram, Expressway region in Noida, and in projects with higher demand. 

Homebuyers are being offered several construction linked payment plans to incentivize sales. A few projects also offered inaugural discounts with a limited validity, while modular kitchen, wooden flooring and air conditioners were among freebies offered in some projects. Developers are optimistic of a further strengthening in sales activity during the upcoming festive period. 

Rental rates also recorded a qoq increase of 2 - 3%, and a yoy increase of approx. 5 – 6% in prominent submarkets of Delhi. In submarkets of Gurugramand Noida, a 5 – 7% escalation was seen on a qoq basis and a significant increase of 12 – 13% on a yoy basis due to an increase in demand. The demand for rental properties is likely to increase as more workforce returns to work in offices.