What were the notable Q2 residential launches in Delhi?
There were 2,534 units launched in the quarter.
New residential launches in Delhi NCR increased 24% q-o-q to 2,534 units in the second quarter. New launches have increased by 1.8x in H1 2022 in comparison to H1 2021, signalling an upbeat market sentiment.
Cushman & Wakefield says Gurugram accounted for a majority share of 74% in the new launches with good activity in micro-markets like Golf Course Road, Golf Course Ext. Road, Gurugram – Faridabad Road.
Here’s more from Cushman & Wakefield:
Amidst continued buyer preference for independent floors, DLF Phase 4 saw the launch of a project of this format. The increasing demand for low-rise format developments has been driving the launch of independent floors in Gurugram.
The core city area of Connaught Place witnessed a marquee project launch on a “by-invitation” basis. The project will boast of an address unlike any other and the location is amongst the finest retail destinations in the country. Noida Expressway was the active micro-market in Noida with close to a fourth of the quarter’s unit launches in sector 150.
The mid segment held a major contribution of 53% in the new unit launches, while the high-end segment had a 45% share. The quarter saw launches by established developers, a trend similar to the previous quarter. Regulatory changes in Gurugram and Delhi The Haryana state government is considering registration of independent floors built on plots less than 180 sq. yards in private developer areas. This is currently restricted, which prevents the buyers from owning or selling such properties. Such a restriction has also led to loss for the state government in the absence of payment of any stamp duty on such transactions.
The Real Estate Regulatory Authority of Delhi has made it mandatory to register projects where the area on which the development is made exceeds 500 sqm, irrespective of the number of apartments. Earlier, the exemption from registration was provided where the land area was less than 500 sqm, or the number of apartments built was less than 8. The move is expected to protect the interest of homebuyers and increase buyer confidence.
The Municipal Corporation of Delhi has decided to increase transfer duty by 1% on properties with a registered value above INR 25 lacs across the city. In another move, the Delhi government has decided to discontinue the 20% rebate on circle rates which was introduced as a measure to revive the economy from the pandemic, with effect from July 1, 2022.
Increase in capital values amidst higher input costs
Capital values across all submarkets in Delhi NCR have increased in the range of 5 – 10% on the back of higher inflation impacting both input and labour costs. An uptick in sales activity also contributed to rise in prices in the city. Despite price rise, large developers have continued seeing momentum in project sales. Capital values are likely to rise in the short term due to higher input costs.
Rental rates also recorded a q-o-q increase of 2 - 3% in prominent submarkets of Delhi and a 5 – 10% escalation in submarkets in Gurugram and Noida due to an increase in demand as well as the generally high inflation levels.