Monthly Watch: No New Launches In September, Gurgaon Yet To Emerge From Realty Slump
Millennium City Gurgaon, it seems, is still battling a slowdown that plagued the major real estate markets of India for over two years. As the government and other sector stakeholders upped their efforts to revive the sector, things started looking up by and by. The state of property markets has seen an improvement in the past couple of months. However, data indicate Gurgaon has yet to come out of a slump that is looming large over its property markets.
According to a PropTiger DataLabs report, Gurgaon, a city renowned for its plush commercial and high-end residential property, did not see a single project launch in the month of September—this means a decline of 100 per cent on a month-on-month basis. On quarter-to-quarter basis, too, launches saw a decline of 34 per cent in the second quarter (Q2) of the financial year 2016-17 (FY17). In terms of sales, the monthly decline in September was six per cent while the quarterly fall in the September quarter was 28 per cent. When compared to the same month last year, home sales in Gurgaon fell 61 per cent in September.
There was no movement in terms of property pricing. In the September quarter, prices witnessed an annual decline of only two per cent. It is worth mentioning here that Gurgaon is among one of the costliest property markets in the country. Expensive property has been a key reason why sales have been dismal. Despite the fact that Gurgaon property has the best of everything to offer, home buyers are seen waiting for a price correction.
The September quarter report also showed Gurgaon, when compared to other major cities, had the highest inventory overhang of 66 months.
According to the monthly report, localities such as Shahjahanpur, Sectors 2 & 33 of Sohna and Sectors 68 & 70A have performed comparatively better and saw an annual price appreciation in the range of three to six per cent.
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