Greater Noida clear winner as Gurugram lags in real estate sales

Greater Noida clear winner as Gurugram lags in real estate sales
June 12, 2019 1 Comment Real Estate, Real Estate News Radha Garg
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National Capital Region (NCR) has steady sales activity where sales of 4.3m sq ft (over 28 percent YoY) with the highest contribution from Greater Noida (1.7m sq ft).

As per a report by Kotak Institutional Equities featured in Moneycontrol, the real estate sales in India’s major cities has reached 37.3 million square feet in March with an increase of 7% YoY taking the FY19 sales to 443m sq ft.

Kotak Institutional Equities report states that there is a decline of 43% YoY in March in the launches across India. Also, uncertainty over GST and liquidity crisis is leading to 6% decline YoY to 286 million square feet in the FY19.

A downward trend was seen in launch activity across all key metro cities- especially Bengaluru where a decline of 64% was visible in the month of March.

A balance was created by the declining launches and the improving sales momentum that supported the diminishing inventory. It says, All-India inventory declining 11 percent YoY to around 1.23 billion sq ft.

One of the report said that in India the prices increased 6% YoY to Rs 5260 psf in the month of March.

NCR remained steady in sales and launches

National Capital Region (NCR) have steady sales activity where sales of 4.3m sq ft (over 28 percent YoY) with a major contribution from Greater Noida (1.7m sq ft) and Gurugram (1.3m sq ft).

One of the report claims that annually the average sale in FY19 is 4.4m sq ft whereas the launch activity dropped down in the other metro cities; the launches in NCR were steady at 3.7m sq ft in March against a monthly average of 2.5m sq ft in FY19.

If we look at the net unsold inventory in NCR in the month of March which is 221m  sq ft that is equal to 50 months sales (on an average of 12 months). But in actual scenario it remained flat YoY in March at Rs 5,055 per sq ft despite an increase of 4%.

Launches in Mumbai Metropolitan Region (MMR) decline
The launches in Mumbai Metropolitan Region (MMR) decreased to 2m sq ft in March which is 49% YoY down wherein a slowdown in launches at Thane (1.2m sq ft in March as against the monthly average of 2.4m sq ft in FY19) as well as Mumbai (down 35 percent YoY).

The report said; In spite of weak launches the sales remained positive at 6.7m sq ft (17% YoY up in March) an average of 6.8 sq ft in FY19. MMR has the outstanding inventory as the highest at 272m sq ft in March (from 303m sq ft YoY) with witnessing sharpest decline in inventory among all regions. And the same will be absorbed in 40 months on the basis of the prevailing past 12-month sales.

Launches highest among metros in Bengaluru The launches in Bengaluru remain the highest across key metros at 51.5m sq ft in FY19 though there was a decline of 64% YoY as per the report. Whereas sales were at 61m sq ft in March and the unsold inventory at 153 m sq ft is the lowest across all the regions in India. In March the realisations increased 3% YoY to Rs 4,940 per sq ft.

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