, India

New residential launches in New Delhi records fivefold jump in 2021

There were 2,708 units launched in Q4 alone.

New residential launches in Delhi NCR saw a significant 5.6x y-o-y growth for full-year 2021 as developers become increasingly optimistic about market demand. 

According to Cushman & Wakefield, Delhi NCR recorded a launch of 2,708 units during the fourth quarter, close to the lines of the previous quarter. Sectors 89, 61, 43 in Gurugram saw traction in the quarter with a huge thrust on the independent floors format. Mid segment accounted for a majority share of 84% in the quarterly launches with high-end segment constituting the rest. 

Here’s more from Cushman & Wakefield:

Gurugram dominated with a 63% share in annual launches with micro-markets of Golf Course Extension Road and New Gurugram witnessing maximum activity. Noida Expressway led launches in the Noida region. A noticeable trend for this year was developers increasing their focus on features like home automation to cater to customer conveniences & work needs. 

While the year saw strong activity in launches under the Haryana government’s Affordable Housing Scheme, with 4,333 units launched during the first three quarters, no new launches happened in the fourth quarter. The upcoming quarter is expected to record the launch of some much-awaited projects by large developers, including launches in the core city area. The year ahead is also expected to witness marquee project launches (including one joint venture) by two national developers in the CBD area of Connaught Place. 

Extended policy-level thrust to carry on-going momentum further 

Delhi government further extended the scheme for 20% reduction in circle rates for all property categories till June 2022 for a second time with an aim to boost the city’s residential market. In another development, Noida Authority has mandated the calculation of stamp duty on flats on the basis of carpet area.

Furthermore, Gurugram is likely to see higher ground coverage from 66% to 75% for plots upto 250 sqm and from 60% to 66% for larger plots upto 1000 sqm. The measure is intended to reduce violations and unauthorized construction in plotted areas. 

Rents remained range-bound; capital values appreciated in Gurugram 

The city is seeing an upswing in sales momentum with serious buyers executing their purchase decisions owing to conducive factors including low interest rates and incentives from developers. Homebuyers returning to the market resulting in healthy sales activity will augur well for the market that had seen a prolonged period of muted sales. 

The trend of robust sales in projects by established developers with a good track record of execution is also evident in Delhi NCR. Quoted capital prices appreciated in Gurugram across both mid and high-end segments with increasing demand for property in the submarket. 

Rental rates remained range-bound during the quarter. The demand for rental properties has been impacted with workforce returning to hometowns, though this trend is likely to reverse in the coming quarters.

 

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