NCR market: Sluggish, but stable

Of the top eight cities, the National Capital Region (NCR) saw the least number of units being launced, which stood at 38,000 this calendar year. The decline, when compared on an all-India basis was 33 per cent year-on-year.

The mid-segment, in the NCR registered the highest number of units launched at approximately 26,000, followed by the affordable segment which saw launches of approximately 25,000 units. Viewed on a segment-wise basis, both categories saw substantially reduced numbers with the affordable segment slipping by 29 per cent and the mid-segment by 37 per cent over the previous year.

There were no launches in the luxury segment. Also all the launches were divided between Noida and Gurgaon with Delhi not witnessing any new housing unit launches this calendar year.

Following the trend in 2012, more than 90 per cent of the new launches in 2013 were in the affordable and mid segment. While the first half of calendar 2013 saw launches primarily in the affordable and mid segment with marginal (2 per cent) contribution from the high-end segment, the second half on the other hand witnessed 18 per cent of the total launches in high-end segment.

In the current economic scenario both buyers and developers are taking a cautious approach not only towards residential real estate but across all asset classes of real estate. However, given that most aspects of development such as construction cost, development cost, cost of land, time taken for approval and cost of debt all have been on an upward tangent developers have not been able to lower costs.

Capital Values

Over the past year Delhi locations have registered a decline in capital values while Gurgaon and Noida witnessed appreciation due to relatively lower ticket size and new project launches which offered construction linked plans as opposed to ready properties in Delhi locations. The high-end segment in NCR markets of south west, south east and luxury category in Gurgaon all saw a decline in capital values to the tune of 5 7 per cent over the last year mostly on account of achieving already high values which in the current market scenario looked unsustainable.

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