Two Operating Metro Routes for Noida
The Aqua line connecting Noida and Greater Noida along with the extension of the Blue line to the Electronic city have been successfully carried out recently, which is expected to pave way for the increase in the housing demands in the areas that are close to these two much-awaited metro routes. Delhi Development Authority (DDA) has granted Rs 500 crore for the 104 km long phase IV of Delhi metro, which was approved by the metro authority recently while the plan to link Dwarka Expressway by metro has also been progressed further by the Gurgaon authority.
Struck real estate projects to be taken over by UP RERA
The Uttar Pradesh Real Estate Regulatory Authority (UPRERA) in what can be considered as a first of its kind step has taken over the development of seven projects in Noida and Greater Noida territory which were supposed to be completed by 2013. The Authority taking the initiatives further has already settled more than 4500 complaints out of the total 11550 cases till now.
Infrastructure upgradation in full swing
Various infrastructure endeavors are being advanced with full force in recent times. The government, along with initiating an upraised expressway to the Delhi airport has also discussed plans to link Meerut and Faridabad through a high-speed corridor. Besides that, the Ashram flyover up to DND flyway in order to ease the traffic is also on the cards in the coming times.
New City under construction in Faridabad
The Haryana government has authorized the development of a new city in Faridabad under the Panchgram plan which proposes five new cities across the Kundli-Manesar-Palwal (KMP) expressway. The city is proposed to be developed over 56000 hectares of land in Faridabad and the progressions have already been started.
The escalation in the real estate sales that started in the second half of 2018 has also continued into this year. The residential markets of Gurgaon and Greater Noida are leading the sales charts while the national capital is witnessing rather dull but steady business rates. In the middle of improving sales, Delhi-NCR’s unsold inventory is going down to 15 % from the last year.
The under-development projects carried out by renowned builders are accumulating better response than the previous months. The change in the Goods and Services Tax (GST) also become a slight setback in the sales enhancement as the buyers felt better to wait till April 2019 to get the complete advantages of the deducted GST rates. Ghaziabad and Faridabad were the most affected regions after the GST reduction as they hold the most amount of housing inventory in the affordable segment across Delhi-NCR.
The inclusion of more than 6000 new homes in H2 2018 created the path for a meticulous 2019. More than 2000 new units were initiated by the Gurgaon itself between Jan-Mar 2019. With the introduction of the land pooling policy, transit-oriented development (TOD), and the extension of the Delhi Metro, Gurgaon and Greater Noida is on the path to complete recovery, which can be supported by the fact that more than 75% of the new units added recently comes from these territories.
Noida, Ghaziabad, and Greater Noida
The setbacks in the real estate sales of Noida and Greater Noida added by the late delivery of the projects has continued in the initial months of 2019. However, the newly operational metro links have given the much-needed momentum and paved the way for a slight increase in sales. Although there are massive expectations on the progression of the Jewar International Airport, RERA authorities are surely going to play a big part in the market revival.
The demand of the properties has been lukewarm in Noida as the developers under huge debt are struggling big time to complete the ongoing projects while Greater Noida witnessed the maximum sales growth in the affordable sector in all over Delhi-NCR. As per the previous trends, the buyers remained favorable to the completed homes, although the transactions were quite low as almost 25000 homes were lacking completion certificates from the authorities.
The demands for the under-development homes being progressed by the reputed builders have been able to gain some momentum after the deduction of GST rates. Although the Noida and Greater Noida territory have been quite struck due to the continued delay in the project’s completion.
The inventory stock was almost the same due to the limited new property initiations and sales, quarter on quarter. The areas close to sector 150 in Noida and Pari Chowk in Greater Noida saw the maximum friction from both the buyers and builders.
The inauguration of the Aqua line and the extension of the blue line are anticipated to be a significant landmark in the real estate landscape of the city as the prices are being pushed by 2-5 % due to these progressions. Besides that, the development of Jewar airport is also foreseen as a big prospect for the investors in regions close to the Yamuna Expressway.
The linking of the metro to the distant destinations has assisted heavily in improving the real estate market of Noida and Greater Noida with rates increasing to 8 from 4%.
Only Ghaziabad has appeared to be witnessing slightly negative price movement. Raj Nagar Extension which attracted maximum demand from the buyers also witnessed dipped prices due to the excess residential stock.
Greater Noida and Ghaziabad in spite of getting tepid reactions from the buyers, has recorded the best sales in Delhi-NCR. Both these areas incorporate inventory which needs around 13 months to sell, whereas Noida and Gurgaon require 14 and 18 months respectively to clean its stock.
Gurgaon and Faridabad
Gurgaon for the second time in a row has exhibited a positive sales movement throughout the quarter with average capital prices despite everything helping to maintain the status. New Gurgaon and the Dwarka Expressway were the center of the attraction of the real estate sales in these areas. In the case of Faridabad, the recently launched Ballabhgarh metro corridor escalated the buyers’ preference while the prices were mostly the same.
The sales in the real estate sector have escalated significantly in Gurgaon given the newly initiated endeavors by the renowned developers in the area close to new Gurgaon and Dwarka Expressway. More than 2000 new homes were included in the market during Jan- Mar 2019. The quick absorption of these homes was a validation of the buyer trust in the under-development properties. The vicinity of Dwarka Expressway recorded four to five percent growth in the demand rates, which was possible due to the quickly progressing construction works indicating early completion.
New Gurgaon captivated the buyers because of the more affordable prices in comparison to Gurgaon. Various sectors with 82A, 85, 86, and 90 in particular attracted positive friction in terms of both conversion rates and new initiations.
Most of the new undertakings in Gurgaon provided homes with costs under Rs 1.2 crore. The luxury sector was quite frenzied of new initiations because of low absorption rates while the resale market remained propelling across affordable segments due to the considerable price benefits.
The demand for the plotted developments has increased following the government’s approval for the registry of the fourth floor of independent flats in Gurgaon with New Gurgaon remaining the first option for the buyers given the competitive costs.
The real estate sales in Faridabad stayed rather quite barring the marginal positives seen in the micro-markets. The newly launched metro link till Ballabhgarh has paved the way for the escalation in the real estate landscape in the distant destinations along with the rental demands also going up by 7-8 percent.
The Real Estate Regulation and Development Act (RERA) has been continued to be a prominent component behind the improvement in buyers’ trust and elevated real estate sales in both Faridabad and Gurgaon. The slow moving process of settlement of complaints and no progressions in the delayed projects are however delaying the market’s revival.
The national capital has witnessed a very stagnant real estate sales during the Jan-Mar 2019 quarter. The sales of the properties have hit almost a dead-end, the prices are inflexible, and the supply of new inventories was also minimal. Dwarka has appeared to be the only territory that has witnessed some considerable real estate transactions owing to the significant infrastructure advancements as well as the metro extension.
The real estate market in the capital city has been rather consistent with their status in the Jan-Mar 2019 quarter and the rental market has just shown a growth of minimal one percent.
Most of the buyers showed the pattern to be attracted towards the townships of Noida, Greater Noida, and Gurgaon, which resulted in a sluggish real estate sales in the national capital. The procedure of extending the metro was a major factor behind the little bit of sales boost that the capital city witnessed. The enhanced metro connectivity also led to a slightly positive price movement, although the elevated prices generally failed to close the deal.
The integration of the Real Estate Regulation and Development Act in the national capital is a work in progress, which has been a crucial factor behind the dull growth in the real estate landscape in Delhi. The Authority has been able to authorize very few residential projects under Delhi RERA till now. The lack of a special court to settle the complaints of the buyers has also remained a major setback for the real estate market in Delhi.
The progressions in the affordable segments have continued to take place across the borders of the city among which Kundli has been able to attract the major friction after the completion of Kundli-Manesar-Palwal (KMP) expressway. The absence of the transactions resulted in the decline of the prices by about two percent in the first quarter of 2019.
The real estate landscape of Dwarka continues to attract positive growths, however at a slightly slower pace. The average capital values witnessed the growth of two percent in sectors like 3, 6, 9, 11, 14, 18, and 23. The slow pace of the growth was majorly due to the forthcoming general elections that are scheduled to take place in April 2019 while the rental market continues to grow significantly by 6-7 percent in the above-mentioned sectors. The major commercialization which happened near Dwarka combined with its close neighboring to Gurgaon has created a snowball effect in the real estate market of this territory.
Disclaimer : The perspectives communicated above are for instructive purposes which are simply dependent on industry outlines and related documents. Per Square Feet does not ensure the exactness, perfection, or the absolute quality of the data and will not be considered in charge of any reaction dependent on the published data.