Gurgaon, Noida remain focal points of NCR real estate investment, price moderation may spur demand

Amidst a slowing global economic sentiments, the Indian economy is by far the only major economy across the globe, that is expected to give commendable growth statistics.

According to the estimates by IMF, India will demonstrate a GDP growth of 7.6 per cent in 2016 and 2017 respectively, ahead of China, USA and other major European economies. A better economic growth trajectory has started to give push to the Indian real estate industry, with higher transaction volume witnessed all across India. The Delhi-National Capital Region (NCR) is one of the major receptors of the new investment flow. Although, the major NCR markets such as Gurgaon, Noida & Greater Noida are still suffering from inventory overhang but this would not hold back the region from welcoming new bunch of national & global investors.

New Investment Horizons in Delhi NCR Markets

The Delhi NCR market with respect to new launches could be primarily split into Gurgaon & Noida (including Greater Noida) region. Gurgaon would remain as the focal point of realty investment in times to come. Although after skyrocketing of prices in the recent times, prices have moderated. Nevertheless, as a center of regional business & commerce, the demand dynamics in the city is very strong.

As seen in the table below, major micro markets in Gurgaon have registered an appreciation in tune of 7-10 per cent over the last 12 months. With relentless rise in commercial space & development of new manufacturing units, Gurgaon has been witnessing new residential hubs such as Sohna Road, Golf Course Extension (GCE) and New Gurgaon, where large scale transaction could be seen.

These are thriving micro markets in Gurgaon, primarily catering to the upper middle class buyer base. It is also an upcoming retail & commercial destination in Gurgaon and is economically priced when compared to other micro markets. These markets are witnessing major chunk of new launches in the city.

Compared to Gurgaon, Noida real estate market that collectively comprises of Noida, Greater Noida, Noida Extension and Yamuna expressway is witnessing slightly less number of new launches with the focus more towards completing existing projects first.

However, locations in Noida North, Yamuna Expressway and Greater Noida West has been seeing large volumes of new launches on the back of higher capital appreciation driven by bullish demand. Aligned with other parts of the NCR, the commercial market in Noida is witnessing surge in transaction that will further stimulate residential market as well in the times to come. As seen in the table prices have moved in tune of 2.5-3.5% in major micro markets of Noida.

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