Gurugram has topped in both housing supply and absorption rate (used to determine how many homes are sold in a market at a particular time) in 2022 among all cities in the National Capital Region (NCR), according to a report released by Anarock, a real estate consultancy.
The report said that of the total 63,710 units sold in the NCR in 2022, Gurugram’s share was 51%, while its share of new launches across Delhi-NCR was a whopping 75%.
According to the report, the city saw 32,620 new residential units sold in 2022, while the total sale of residential units in the NCR stood at 63,710, which was 51% of the entire residential stock in the NCR.
The number of new launches of residential units in Gurugram stood at 19,100, while the total units launched in the NCR stood at 25,355.
City-based developers said that sales rose in 2022, and prices are also holding steady, and they are expecting the same trend this year.
According to data shared by Anarock, Gurugram witnessed the sale of 15,590 residential units in 2021, which was 39% of the total 40,040units sold in the NCR. In 2020, the number of residential units sold in Delhi-NCR was 23,210 units, while the number of units sold in Gurugram stood at 7,240 units. In 2019, the city saw the sale of 13,244 residential units out of the 46,917 units launched in the NCR, which was 28% of the entire stock.
The report also observed that supply was restricted in the NCR in 2022 despite higher sales. According to experts, developers in Delhi-NCR have taken a very calibrated approach to manage inventory by reducing the number of new launches and selling products that catered to the needs of homebuyers and also taking into account the conditions of the micro-markets in which they were operating.
City-based developers said 2022 was the year of revival after the real estate industry witnessed a slump for two consecutive years due to the Covid-19 pandemic-induced lockdowns, with homebuyers and investors returning to the markets.
Despite an increase in home loan rates, buyers are still interested in purchasing flats and despite an appreciation in interest rates, investors have also returned in key micro-markets across the city such as Sohna Road, Golf Course Extension Road and the Dwarka Expressway, they said.
Pradeep Agarwal, founder and chairman, Signature Global, said that in 2022, real estate witnessed a sharp recovery amid a surge in demand from end-users. “Reasonable pricing, lower interest rates and an abundance of offerings prompted end-users to book homes in 2022. The situation is likely to remain similar in 2023 as well, particularly for affordable and mid-segment housing,” he said.
A residential unit costing between ₹25 lakh to ₹50 lakh is defined as an affordable housing unit, while a unit priced between ₹50 lakh to ₹80 lakh is considered as mid-segment housing, according to real estate experts.
The completion of much-delayed infrastructure in the city, particularly of the Sohna Elevated Road, the soon-to-be ready Dwarka Expressway and a key stretch of the Mumbai-Delhi highway have also helped attract buyers and investors in the realty market in Gurugram, said industry watchers.
Pankaj Bansal of M3M India Private Limited said that a key factor that galvanised real estate across the country was the active participation of institutional investors and foreign direct investment, which ensured that capital was available to all segments in the real estate market.
“The luxury home segment witnessed major momentum as high net worth buyers invested aggressively. This is the reason why the residential segment has grown 40% in 2022 as compared to 2021 and is further expected to rise annually by 5% till 2027,” Bansal said.
Vinod Behl, a city-based real estate expert said that one major reason for the rise in luxury home sales was flat buyers’ concern for safety and wellness, post the pandemic. Another reason was the reverse migration to smaller towns due to remote working after the pandemic. “Availability of large homes at affordable rates in smaller towns also boosted the demand for luxury homes. NRIs in particular have fuelled this demand,” he said.
Amarjit Bakshi, chairman and managing director, Central Park, a real estate developer, said that renewed focus on home ownership also propelled the significant number of new launches in the NCR this year. “Gurugram has witnessed growth in the realty market in 2022, where housing sales registered at least three-fold increase between January and September due to people preferring to buy their own homes,” he said.
City developers also said that despite the buoyancy in the market, a majority of buyers preferred ready-to-move-in properties over those under construction due to concerns related to delays.
According to a recent report released by No Broker, a proptech firm, while a majority of buyers are still inclined towards ready-to-move-in properties, there is a slight increase in the popularity of plots because the latter have a better scope of price appreciation.
Anuj Puri, chairman, Anarock, said that despite all the encouraging factors, such as rising property prices, the housing sales in the top seven cities (Mumbai Metropolitan Region, Delhi-NCR, Bengaluru, Pune, Hyderabad, Chennai and Kolkata) in the country breached the previous high in 2014, while in comparison, the number of new launches remained low.
“We anticipate the current momentum in housing sales to continue in the first quarter of 2023. The appetite for home ownership is undeterred, with maximum sales being driven by end-users. A lot will depend on how the home loan interest rates pan out over the next year,” Puri added.
According to Behl, as long as home loan interest rates remain in the single digit, there will be no serious impact on demand. “One expects a pause in interest rate hikes in the next financial year, though a lot will depend on how global recession and domestic inflation will play out. The home loan rates will be a key factor in deciding how realty plays out,” he added.
Source : HT