Knight Frank India released its residential research report for December 2012 focussing on the NCR residential market landscape. Residential demand has remained strong in the NCR, despite being characterized as a speculative market owing to the predominance of investors. However recent revision of the circle rates is expected to bring more transparency in the market. Gurgaon witnessed the highest number of launches in H1 FY13 constituting about 33% of the total launched units in NCR during this period. Almost 45% of the under construction units in the NCR market is expected to be ready for possession by end of 2013, as a bulk of projects were launched in 2010. Nearly 56% of the under construction units fall in Noida and Greater Noida. Gurgaon constitutes nearly 20% of the under construction units.
The NCR residential market witnessed a dip in absorption in H1 FY13 compared to H1 FY12. Residential sales usually go up during the festive season and towards the end of the year due to the discounts offered by the developers. It remains to be seen if absorption levels will pick up in H2 FY13. Nearly 71% of the absorption has been in the affordable segment housing with a ticket size less then INR 5 million in H1 FY13. Market shows a cautious outlook as sales have seen a dip. As per Knight Frank India’s ‘quarters to sell’ analysis, that assesses the market health by comparing construction and sales timelines observed that unsold inventory levels are showing an upward trend. Rising property prices and high interest rates have also deterred genuine buyers from taking decisions, it said.