Monthly Watch: New Launches Surge 16% In September In Noida

Data digging of the real estate market of Noida presents a contradictory picture. New unit launches in the city increased 25 per cent in the second quarter (Q2) of the financial year 2016-17 from the previous quarter. But, PropTiger DataLabs figures also show that during the same period (July-September) , new launches went up 16 per cent over the previous month. However, Q2 figures show that Noida, the information technology hub of the national capital region, has the highest inventory overhang of 53 months among the nine major cities of the country.

To battle the swelling inventory stock, developers across the country have been going slow on new launches. Noida, however, seems to be an exception. This generates more curiosity in the light of the fact that homes sales have been sliding on a regular basis. While in Q2, they fell two per cent over Q1, in September, sales went down four per cent from the previous month. On yearly basis, Noida home sales plummeted as much as 33 per cent in September.

What could be the reason behind the rise in new launches? According to the PropTiger DataLabs, 50 per cent of the total new launches were in the affordable segment in September. In terms of sales, too, this segment contributed 60 per cent to the overall sales. On the other hand, property prices saw an annual dip of three per cent and a monthly fall of one per cent in September.

This indicates developers active in the region might be looking to cash-in on the government push to the affordability factor – the Prime Minister Narendra Modi-led government has plans of providing housing to all by 2022. On lower prices and better stock, sales may see an uptrend in future. There is no denying the fact that among the major cities, Noida offers one of the most affordable residential options in the country. 

Certain new developments are also expected to give a fillip to the real estate growth in Noida. While the Noida Authority has announced to increase the floor area ratio (FAR) for under-construction projects, there are also plans to extend the Delhi Metro's Blue Line link that would give Noida a direct connect with neighbouring Ghaziabad.