Housing sales in Delhi-National Capital Region (NCR) grew 67 percent to 58,460 units in 2022 over the previous year despite consecutive repo rate hikes and price increases. Interestingly, half the residential units sold in NCR in the second half of 2022 were priced over Rs 1 crore.
Developers scaled up new launches to 62,233 units, mostly independent floors and gated plotted development projects, even as unsold inventory crossed 1 lakh units, as per a report by real estate consultant Knight Frank India.
Gurugram had a 41 percent share of the total units sold in H2 of 2022, while Noida, Greater Noida and Ghaziabad cumulatively accounted for a 54 percent share. Sales velocity in Noida and Greater Noida was impacted by the limited availability of new inventory and lack of completed projects, it noted.
As many as 34,507 units were launched in H2 of 2022 in NCR, nearly double the launches in H2 of 2021, Knight Frank India said in the 18th edition of its flagship half-yearly report - India Real Estate: 2022 – which presents an analysis of the residential and office market performance across eight major cities for July-December 2022 period.
Gurugram saw the most launches
Gurugram took the lion’s share, or 61 percent, of the total NCR launch pie on strong demand for residential products in its micro-markets, the report said.
In H2 2022, residential launches took place in DLF Phase I, Sector 37D along the Dwarka Expressway and Sector 84, 93 and 113 in New Gurugram. Golf Course Road and Golf Course Extension Road also witnessed a few launches.
Sales lag in Noida and Greater Noida
Noida’s share in NCR’s total sales volume decreased to 14 percent in H2 of 2022 from 19 percent a year ago, largely due to the non-availability of ready-to-move-in inventory in key micro-markets of Noida situated closer to Delhi.
A lack of under-construction projects from credible developers known for their execution capability created a shortage of preferred residential projects. Despite high homebuyer demand, sales lagged as there were few residential products to consider, the report said.
Noida’s share in NCR’s launches fell steeply to 4 percent in H2 of 2022 from 13 percent a year ago. Comparatively, Greater Noida’s share in NCR’s total sales dropped marginally to 27 percent in H2 of the last year over 29 percent in H2 of 2021. Demand sustenance for ready-to-move-in inventory helped Greater Noida maintain its share in NCR’s total sales but sales velocity has been impacted due to limited availability of new inventory and lack of completed projects, the report said.
Greater Noida West remained a suitable location for homebuyers and witnessed good sales traction.
From 18 percent in H2 of 2021, Greater Noida’s share in NCR’s total launches increased to 22 percent in H2 of 2022 on the back of upcoming infrastructure developments like Noida International Airport, multi-modal logistics park and expansion of the metro link between Noida and Greater Noida. The extension of Metro’s Aqua Line between Noida and Greater Noida (West) will boost connectivity between Noida Sector 51 and Knowledge Park V in Greater Noida (West) and bolster real estate development in Sectors 122, 123, 4, 2, Sector 12 Ecotech, Greater Noida Sectors 10, 12 and Greater Noida Knowledge Park.
Share of premium homes touches 50 percent
Since H2 2021, the share of housing units in the price range of over Rs 1 crore in the total sales volume has consistently increased in NCR. From 37 percent in H2 2021, the share of this category expanded to 41 percent in H1 of 2022 before growing to 50 per cent in H2 2022, the report noted.
There has been a sizeable jump in the demand for premium residential products which has largely remained unaltered despite the interest rate hike. In NCR’s overall sales volume, the share of Rs 50 lakh to Rs 1 crore segment reduced from 33 percent in H1 2022 to 30 percent in H2 2022.
Average housing prices jump 7 percent
In 2022, the average residential prices across NCR registered a 7 percent year-on-year (YoY) growth.
The Ghaziabad NH24 belt saw a price increase of 4 percent whereas Raj Nagar Extension witnessed a 1 percent jump. In Greater Noida, Sector 1 and Omicron 1 saw a 7 percent increase, Noida’s Sector 78 a jump of 5 percent while Sector 143 saw a 4 percent rise.
Gurugram’s Sector 77 witnessed a 6 percent increase in prices while the jump was 7 percent in Sector 81, the report said.
Unsold inventory crosses 1 lakh units
Despite buoyancy in home sales in 2022, the unsold inventory in NCR witnessed a 5 percent YoY growth to 100,959 units. This is largely due to the infusion of new supply which not only breached the pre-pandemic levels but also hit a seven-year high.
Maximum unsold inventory was in Gurugram at 35,259 units followed by Greater Noida at 33,945 units. Ghaziabad had an unsold inventory of 15,213 housing units, the report noted.Last year, NCR’s leading publicly listed and private developers closed several land parcel acquisitions in Gurugram and Noida to strengthen their development portfolio, the report added.