Real estate in Delhi NCR performing better than Mumbai in 2013
NCR vs MMR
The performance of real estate in big Indian cities so far in 2013 has been a mixed one. While Mumbai has always been the face of Indian real estate growth, recent times have projected Delhi-NCR, Bangalore and Chennai along with other upcoming cities in the limelight.
Till the end of January, Delhi NCR seems to be one step ahead of Mumbai. The National Capital Region (NCR) witnessed rise in home sales as opposed to Mumbai Metropolitan Region where home sales have dropped. Residential absorption in NCR areas have increased due to sales shooting up significantly across apartments in Greater Noida, Yamuna Expressway, Faridabad and Noida Extension.
The number of units sold have gone up by 46% in NCR in January, 2013 in comparison to the same period during 2012. In Mumbai Metropolitan Region (MMR), the sales dropped by 14% for the same period. As per records, the total number of homes sold in NCR were 8,812 in January while it was 6,032 in January, 2012.
In Mumbai, a total of 5,130 units were being sold in January while the number stood at 5,983 last year. Mumbai’s sluggish performance has been blamed upon the dismal performance of Thane realty market, which has seen a dip of 23% in January.
The issue of land acquisition in NCR had been solved, favourably affecting the home sales in the region. While in January, 2012, only 694 units were sold in Yamuna Expressway, Noida Extension and Greater Noida, scenario has changed immensely this year. In January this year, a total of 3,998 units were sold in Noida Extension and Yamuna Expressway.
Another factor behind NCR’s good performance is the availability of high priced apartments along Noida Extension and Yamuna Expressway. Professionals from various IT firms and MNCs have chosen the area due to developed connectivity and well planned infrastructure.
New launches in NCR also saw a boost and jumped by 18% during the same period. Gurgaon, once being touted as the Millennium City, has witnessed little slump as absorption rate in case of apartments in Gurgaon has come down by 4%.
Mumbai developers have controlled new launches and brought it down by 48% during January 2013. The step has been taken to evade any demand supply mismatch, which had been a constant factor clouding the prospects of real estate in India.
Drop in new home launches
New launches have been sluggish throughout the country this year. New launches in the NCR dropped by 35% to 5,208 units compared to 8,041 units last year. New launches have come down in pan Indian landscape, with Bangalore being an exception.
Small correction in the real estate market has taken place, with developers controlling the new launches to align the market on backdrop of unsold inventories and cash crunch. RBI’s decision to reduce repo rates has signaled positive prospect for developers, especially in big markets like NCR and MMR.
Other metro like Hyderabad and Chennai also saw a drop in absorption rates, forcing developers to cut down new launches. In Chennai, new launches dropped by 47%, reflecting the caution shown by the developers.
In Hyderabad, new launches came down by 35%. Bangalore seems to be performing well on the other hand, with an increase of 32% in home sales and a 22% increase in new launches. A total of 4181 homes have been sold in Bangalore in January.
