NCR residential outlook: More supply on the way

NCR’s residential market is expected to see renewed momentum in terms of fresh supply with several large projects including townships expected to be launched in 2013 concentrated on emerging locations of Gurgaon and Noida such as Dwarka Expressway,Southern Peripheral Road,Noida Extension,Greater Noida and along the Noida-Greater Noida Expressway. There would also be a very wide variety in product offering ranging from affordable to luxury,with the majority expected to cater to the affordable and mid-priced segment.

Of the two locations,Noida is expected to outdo Gurgaon with an estimated 68,700 units expected to get completed. More than 85 per cent of these units have already been sold to buyers/investors in the primary market. Given the huge influx of supply and steady demand,a moderate price appreciation is expected in the coming year.

In terms of new project launches,micro markets such as Noida Extension,Greater Noida,Noida-Greater Noida Expressway and Yamuna Expressway are expected to come up with very large residential projects mainly in the affordable and mid-priced segments to attract end-users.

Greater Noida and Noida Extension are likely to witness robust fresh supply given that issues pertaining to land acquisition have been resolved. Also,there has been increased interest and focus on the Noida-Greater Noida Expressway with the second Formula One races. Moreover,with the opening of the Yamuna Expressway,the region’s residential market is expected to grow positively in the forthcoming years.

In Gurgaon,nearly 28,800 residential units are likely to get added to the completed stock in 2013. This accounts for approximately 35 per cent of the under construction supply which would be ready for possession in the next three-four years.

The demand for the upcoming units across Gurgaon in 2013 has been healthy; more than 95 per cent of these units have been already been sold to investors and end-users in the primary market. With the steady infusion of supply and healthy demand,an upward revision of prices is expected in 2013. One of the key locations that is expected to attract buyers and investors in large numbers in Gurgaon is the Dwarka Expressway,also known as the Northern Peripheral Road.

Being strategically located in close proximity to Delhi and Gurgaon,the upcoming Aerocity and the Delhi International Airport,Dwarka Expressway is expected to witness a healthy price appreciation in 2013. The commencement of the Rapid Metro connecting Sikanderpur with DLF Cyber City will add to the attractiveness of the surrounding areas resulting in capital values increasing further.

Under the recently notified Gurgaon-Manesar Master Plan 2031,various new land pockets have been unlocked for residential use in the Gurgaon region. Approximately 16,021 hectares of land has been allocated for residential zoning and various infrastructure initiatives have been proposed. One can look forward to various group housing projects and townships coming up in these locations in the near future.

— The author is ED,residential services,Cushman & Wakefield