Tatsat Chronicle Magazine

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National Capital Region (NCR) Residential Sales Grow By 154%

The real-estate sector is witnessing some rebound after a prolonged slump due to the Covid-19 pandemic.

National Capital Region

National Capital Region’s (NCR) primary residential market grew 154% in the first half (H1) of 2022 in comparison to the same period, Knight Frank India has said. In its latest report on India’s real estate Knight Frank said that 29,101 units were sold in (NCR). This was the highest sales level for the region since the second half (H2) of 2013.

The strong uptick in NCR’s sales led to a 6% year-on-year improvement in unsold inventory, leading to a decline in the Quarters to Sell (QTS) levels from 14.7 in H2 2021 to 9.6 in H1 2022. Gurugram continued to dominate the NCR’s residential landscape, accounting for a market share of 38% of the total sales during H1 2022.

The current year started on a positive note for the NCR residential market with a new up-cycle in terms of both new supply and demand in the primary market. New home launches increased by 876% to 28,726 housing units in H1 2022. This is large because of the low volume of new units launched in H1 2021, which was adversely affected due to the second wave of pandemics.

In terms of office market performance, NCR made a strong comeback and emerged as the second-best performing office market across the top eight cities in terms of office space leasing during H1 2022. NCR’s transactions volume increased from 2.4 million sq. ft. in H1 2021 to 4.1 million sq. ft. in H1 2022, leading to a 69% year-on-year growth.

New office completions were recorded at 2.5 million sq. ft. during the same period, registering a decline of 17%. The report said that Gurugram continued to dominate the office market, accounting for 71% share of the total space transacted during the period.

Even while IT remains the largest sector to take up office space, the co-working sector recorded the highest increase in share making up 18% of all office space transactions in H1 2022. The average transacted rents in NCR increased marginally by 1% during the corresponding period.

In respect of the residential price movement, NCR’s average residential prices increased by 7% at ₹4,437 per sq. ft. (₹47,760 per sq. m). This is mainly attributed to rising input cost pressures being faced by developers, which have led to an increase in residential prices in the primary market.

From the perspective of half-yearly sales and launches, the well-developed micro-markets of Gurugram have always attracted homebuyers. In H1 2021, Gurugram accounted for 32% of NCR’s total sales volume which has expanded to 38% in H1 2022. The city also commanded the highest share of 52% of NCR’s total units launched in H1 2022. During the same period, Noida comprised a 20% share in total sales, whereas in H1 2021, Noida had accounted for a 15% share in NCR’s total residential sales. However, Greater Noida’s share in NCR’s overall sales declined from 34% in H1 2021 to 23% in H1 2022.

Similarly, Noida’s share in NCR’s total new launches also remained high. From a 13% share in H1 2021, it increased to 29% in H1 2022. The share of new launches in Greater Noida declined from 42% in H1 2021 to 13% in H1 2022, the report stated.

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