Upward trend witnessed in 22% of Delhi localities, 26% in Ghaziabad, 27% in Gurgaon, 37% in Noida and 41% in Greater Noida.
New Delhi, May 16, 2017: Magicbricks’ PropIndex for Jan-March 2017, the most awaited real estate quarterly report, revealed that while prices witnessed a downward trend across the National Capital Region (NCR) few areas in Delhi, Gurgaon, Noida, Greater Noida, Ghaziabad and Faridabad have started recovering in the aftermath of the demonetization drive.
The City Index for NCR for the immediate quarter of demonetization captured price movements across 68 prominent zones in New Delhi, 73 zones in Gurgaon, 35 zones in Noida, 17 zones in Greater Noida and 46 zones in Ghaziabad. These localities have high share of consumer preference as well as actively traded properties.
The flagship report of Magicbricks, India’s No.1 property portal, reported that while demonetization took a toll across NCR’s real estate market, 22% of Delhi’s localities witnessed an upward trend followed by 26% in Ghaziabad, 27% in Gurgaon, 37% in Noida and 41% in Greater Noida. The overall the outlook for NCR remains weak across all the high consumer preference localities, irrespective of budget segment.
The report added that for a city like Delhi, where a significant portion of the supply is in the ready-to-move-in markets and mostly in the secondary market, the Jan-March, 2017 quarter has been tough. The high percentage of black money component in Delhi was severely hit by the ‘Demonetization’ drive, leading to drying up of housing deals. The passage of the Prohibition of Benami Property Transactions Act (PBPT Act) in November last year has also led to a significant reduction in benami transactions in the market, further hitting the transaction volumes.
Mr. Sudhir Pai, CEO Magicbricks says, “Property prices in the NCR region have seen a downward trend post demonetization. Considering the fact that in NCR realty transactions were pre-dominated by cash component; the region is expected to take time to get back to its earlier transaction level. Talking about Delhi specifically of the 68 localities, which were captured in the PropIndex, 78% witnessed a decline in price while the balance 22% localities show a marginal price increment. As the real estate sector goes through a transitional phase with the introduction of RERA, GST, Benami Act and REITs, a tool like PropIndex becomes a key indicator that will help consumers get a fair idea about the changing times.”
Let’s have a closer look at real estate scenario across key regions:
- Delhi: The Delhi residential market continues its downward movement in the Jan-Mar 2017 quarter as well. Of the 68 localities, 78% localities witnessed a decline in price while the balance 22% localities show a marginal price increment. Dwarka, Kalkaji, Vikaspuri, Defence Colony and Chattarpur are a few prominent localities amongst those which saw some price improvement. Analysis across 68 localities shows that on an average, Under Construction (UC) properties are more expensive than Ready-to-Move-in (RM) properties in the Jan-Mar 2017 quarter. The average price of RM properties fell by 2.4% while that of UC properties also declined by 3.2% in the last quarter.
- Gurgaon: Gurgaon market has been in decline for the last two quarters and the trend continues in the Jan-Mar 2017 quarter. About 70% localities, which cover most of the high consumer preference localities, witnessed price correction. The market declined further by 2% in the Jan-Mar 2017 quarter with price decline across all major budget segments. The only exception is the Rs 14,000-18,000 per sq ft bracket with 1% price rise. Most of the established localities to the east of NH-8 as well as the under-developed sectors off and along Dwarka Expressway have seen a dip in price in the Jan-Mar 2017 quarter. Analysis across 73 localities shows that on an average, Ready-to-Move in (RM) properties were 8% more expensive than Under-Construction (UC) properties in the Jan-Mar 2017 quarter. The average price of RM and UC properties is Rs 7,870 per sq ft and Rs 7,292 per sq ft, respectively.
- Noida: Overall, the Noida market remained subdued in the Jan-Mar 2017 quarter. Of the 35 localities, 60% localities witnessed a decline in price while 37% localities show a marginal price increment. Price level in balance 3% localities remained at the same level as last quarter. Analysis across 35 localities shows that on an average, RM properties were 6.9% more expensive than UC properties in the Jan-Mar 2017 quarter. While the weighted average price of RM properties was Rs.5,059 per sq ft, the same for UC properties in the quarter was Rs.4,734 per sq ft. While overall scenario remains weak in the region, some sectors like Sector-137 and Sector-78 with RM options are likely to see marginal price increment.
- Greater Noida: After witnessing price increment in the previous quarter, the realty market in Greater Noida was more subdued in the Jan-Mar 2017 quarter. The price level has declined as compare to the last quarter. This was because more than 50% localities witnessed a price decline. About 41% localities had marginal price increment with the balance being stable. The price in the Jan-Mar 2017 across the entry level budget segments was positive while higher budget segments witnessed price decline. Analysis across 17 localities shows that on an average, Ready-to-Move-in (RM) properties are more expensive than Under Construction (UC) properties in the Jan-Mar 2017 quarter. The weighted average price of RM and UC properties was Rs 3,774 per sq ft and Rs 3,141 per sq ft , respectively. The overall outlook for the coming three months remains weak with most of the localities expected to either witness a price decline or remain stagnant. Greater Noida West might see some price gain. It is likely that the announcement of metro rail connectivity between Noida and Greater Noida West might fuel some positive sentiment in the market.
- Ghaziabad: The Ghaziabad realty market continues its downward slide which started in the previous quarter. The weighted average price has declined by 2% in the Jan-Mar 2017 quarter. At the city level, more than 70% localities witnessed price decline including high consumer preference localities like Indirapuram, Vasundhara and Vaishali. Analysis across 46 localities shows that on an average, Under Construction (UC) properties are more expensive than Ready-to-Move-in (RM) properties in the Jan-Mar 2017 quarter. While the weighted average price of RM properties was Rs 4,223 per sq ft, the same for UC properties was Rs 4,305 per sq ft. While both RM and UC properties have seen a decline in the Jan-Mar 2017 quarter, the decline was higher for RM properties, leading to widening of price gap between the two. Price of RM and UC properties declined by 2.3% and 1% respectively. In line with market trends over the last two quarters, the overall outlook remains weak. Price in high consumer preference localities in the Rs 4,000-5,000 per sq ft budget segment like Vaishali, Vasundhara and Indirapuram, is likely to either go down or remain stagnant. Localities in the low budget segment like Raj Nagar Extension and Crossings Republik are also likely to remain weak.