In the wake of booming residential market, new residential supply is witnessing a surge , with Delhi-NCR registering a triple digit quarterly growth and Gurugram emerging as the dominant market.
The real estate market in Delhi NCR witnessed a healthy surge in the supply of new residential units, with 5,209 launches by various developers in the first three months of 2023, marking a remarkable 189 percent quarter-on-quarter growth, as per the latest PropTiger Report.
According to the report titled Real Insight Residential – January–March 2023 by Proptiger.com, for the top eight realty markets, a total of 1,47,780 residential units were launched in the January-March period of 2023, registering an all-time high quarterly level of new launches.
Source: Real Insight Residential – January-March 2023, PropTiger Research
Average price in Delhi NCR during Q1 2023 (in Rs per square foot) was Rs 4,500 – 4,700, reflecting a 6 per cent increase year-on-year.
The unsold stock as of March 2023 in Delhi NCR was 99,690 units, reflecting a 66 months of inventory overhang while the all India inventory overhang was 34 months.The PropTiger Report revealed that a significant proportion of the total launches in Delhi NCR, accounting for 50 per cent, were priced in the above Rs 1 crore price segment, reflecting the demand for premium housing in the region.
Among the areas witnessing high development activity, Sector 63 (Gurugram), Sector 92 (Gurugram), Sector 1 – Greater Noida West (Noida Extension), and Sector 93 (Gurugram) emerged as the top destinations for new launches.
“Gurugram emerged as the frontrunner, capturing a lion’s share of 63 percent in the overall new supply across Delhi NCR. The city’s prime location and attractive offerings have contributed to its dominance in the real estate market,” said Mr. Vikas Wadhawan, Group CFO REA India & Business Head PropTiger.com.
Commenting on the trends, Ms. Ankita Sood, Head of research, PropTiger.com, Housing.com & Makaan.com said, “The property market in Delhi NCR has come back on track especially the key markets of Gurugram and Noida. The demand remains steady, both for new projects and ready-to-move-in properties in key locations that offer good connectivity and proximity to social infrastructure. Our IRIS index, which measures the high-intent, high-volume property search trends in 42 key Indian cities, shows that Delhi NCR is amongst the top-three cities witnessing high interest in property purchase, suggesting active traction for property buying.There has also been a significant increase in new property supply in the mid to luxury segment, demonstrating the strong developer confidence in the market.”
In terms of sales, as per the PropTiger data, a total of 3,804 units were sold in Delhi NCR during Q1 2023. The demand was predominantly driven by 3BHK units, constituting the highest share of 45 percent, followed closely by 4BHK units with 38 percent of the total demand. Gurugram claimed a significant portion of the sales pie with 35 percent, while Noida and Greater Noida together accounted for 39 percent of the total sales.
Sector 1 – Greater Noida West (Noida Extension), Sector 86 (Gurugram), Raj Nagar Extension (Ghaziabad), Techzone 4, and Sector 92 (Gurugram) experienced the highest traction in terms of sales during Q1 2023.
Delhi NCR currently holds an 11 percent share in the total unsold inventory among the top 8 cities in India. At the end of Q1 2023, the unsold inventory stood at 99,690 units, making it the city with the highest inventory overhang of 66 months compared to other major cities.
The report points out that the remarkable growth witnessed in the Delhi NCR real estate market during Q1 2023 showcases the region’s resilience and attractiveness to homebuyers and investors alike. The strategic locations, coupled with the diverse range of housing options, have played a vital role in stimulating demand and driving the market forward,
Housing sales and launches include primary market data of group housing/plots / independent floors
Housing markets covered in the report includes Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Delhi-NCR (Gurugram, Noida, Greater Noida, Ghaziabad, and Faridabad), MMR (Mumbai, Navi Mumbai & Thane), and Pune.