Realty Wrap 2016: A Sluggish Growth, NCR To Make A Comeback In 2017

The national capital region or NCR witnessed a sluggish growth all throughout 2016 where the numbers dropped drastically in the first quarter of the financial year 2016-17 when compared to the fourth quarter of the financial year 2015-16, only to witness a slight rise in the second quarter of the financial year 2016-17.

Even though the key markets of NCR, Gurgaon and Noida, witnessed coming and an announcement of new infrastructural development, not much could drive the market growth.

Some of the developments include extension of the Blue line of Delhi Metro linking Noida directly to Ghaziabad; two upcoming infrastructural projects namely Delhi–Mumbai Industrial Corridor (DMIC) and the Amritsar-Delhi-Kolkata Industrial Corridor (ADKIC) ; four new bridges across the Hindon River received green signal from Geater Noida Industrial Development Authority (GNIDA) ; and Haryana state government's plans to construct a four-lane road which is 4.5 kilometers long and will connect Delhi with Dwarka Expressway.

However, the NCR in 2016 witnessed a large inventory overhang these infrastructural developments are likely to boost the real estate here in coming times.

PropGuide gives you an insight on the performance by NCR in 2016.

Highlights of 2016

Over the last twelve months, the property prices in Noida and Greater Noida witnessed a slight decline. While Gurgaon's property prices have witnessed an increase.

Major infrastructure projects including bridges over Hindon River, extension of Metro and coming of roads connecting the national capital to the Dwarka Expressway, will be the key growth drivers for the real estate market in the NCR in the coming times.

Units Launched

Noida

In Q4 FY'16, the units launched in Noida were 3,366.  This number declined to 1,759 units in Q1 FY'17 and then went up a little to to 2,192 units in Q2 FY' 17. But, witnessing an overall drop since the year began.

Note: Here, Noida includes Greater Noida and Yamuna Expressway

Gurgaon

The number of units launched in Gurgaon were 1,553. This number rose to 2,014 units in Q1 FY'17 only to drop to 1,331 units in Q2 FY'17.  

Top performing micro markets in NCR

Techzone 4, Sector 1 Noida Extension, Sector 76 and Sector 16 C Noida Extension were some of the top performing markets that were cited across PropTiger DataLabs quarterly reports. Similarly, in Gurgaon, Sector 103, was one of the top performing micro markets. This is based on the units sold during the period ranging from January 2016 to November 2016.

Price Trends in NCR

Gurgaon

Property prices in Gurgaon witnessed a slight increase in the last twelve months. In January 2016, the price per square feet is Rs 5,573. This rose to Rs 5,660 per square feet in October 2016.

Greater Noida

The property prices in Greater Noida at the end of January 2016 stood at Rs 3,570 per square feet. This number by the end of October 2016 dipped to Rs 3,505 per square feet.

Noida

Even property prices in Noida witnessed a decline. In January 2016, the property prices in Noida were Rs 4,142 per square feet which declined to Rs 4,056 per square feet in October 2016.

Developers who made an impact

Tata Housing in partnership with Lotus Greens is entering into Noida's real estate market and together will develop a housing project.

Godrej Properties joined hands with Lotus Greens for a housing project.

Vipul Ltd will launch a luxury project 'Aarohan' in Gurgaon. For this, the group has raised Rs 275 crore from PNB Housing Finance.

Orris Infrastructure will develop a Market City in Gurgaon with an investment of Rs 150 crore. A mixed-use development, the project will have 250,000 sq ft of retail space and approximately 200 studio apartments.