Gurgaon Residential Property Market Overview -May 2015
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During 1Q 2015 primary sales continue to remain sluggish in premium segment however, some traction was witnessed in secondary market for ready to move in projects. Projects launched under affordable housing scheme of HUDA witnessed good response due to their lower price and good locations. In premium segment a few new projects were launched primarily in newly developing sector in Sohna region. These projects includes; “Ashiana Anmol” by Ashiana Housing at Sector 33, “Hill Town” by Supertech Ltd. at Sector 2 and ‘M3M Marina” by M3M India at Sector 68. All these projects were launched in the price range of INR 4,400 – 6,600 per sq ft. In affordable segment projects like “Andour Heights' by Signature Global located in Sector 71, NH-8 was launched. All of these projects are expected to be complete in the span of 2 to 3 years. Developers have already over stretched themselves by launching huge townships and large sized projects, which were difficult to execute and required significant funding. With paucity on bank lending on these projects, the construction pace slowed down to alarming levels and not many projects / parts of the projects saw Market Indicators Relative to prior period 2014 2014 2015 2015F Market Q3 Market Q4 Market Q1 Market Q2 CAPITAL RATE NEW PROJECTS CONSTRUCTION RENTAL RATE MICRO MARKETS CAPITAL VALUES (INR PSF) % CHANGE QoQ YoY Market Trends Gurgaon | RESIDENTIAL
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Transcript of Gurgaon Residential Property Market Overview -May 2015
During 1Q 2015 primary sales continue to remain
sluggish in premium segment however, some traction
was witnessed in secondary market for ready to move in
projects. Projects launched under affordable housing
scheme of HUDA witnessed good response due to their
lower price and good locations.
In premium segment a few new projects were launched
primarily in newly developing sector in Sohna region.
These projects includes; “Ashiana Anmol” by Ashiana
Housing at Sector 33, “Hill Town” by Supertech Ltd. at
Sector 2 and ‘M3M Marina” by M3M India at Sector 68.
All these projects were launched in the price range of INR
4,400 – 6,600 per sq ft. In affordable segment projects
like “Andour Heights' by Signature Global located in
Sector 71, NH-8 was launched. All of these projects are
expected to be complete in the span of 2 to 3 years.
Developers have already over stretched themselves by
launching huge townships and large sized projects, which
were difficult to execute and required significant funding.
With paucity on bank lending on these projects, the
construction pace slowed down to alarming levels and
not many projects / parts of the projects saw
Market Indicators
Relative to prior period 2014 2014 2015 2015F
Market Q3 Market Q4 Market Q1 Market Q2
CAPITAL RATE
NEW PROJECTS
CONSTRUCTION
RENTAL RATE
MICRO MARKETS CAPITAL VALUES
(INR PSF)
% CHANGE
QoQ YoY
Market Trends
Gurgaon | RESIDENTIAL
completion during the quarter. Major projects
completed were “Lifestyle Homes” and “Gurgaon 21”
both by Vatika Group located in Sector 83. These
projects were priced in the range of INR 5,200 – 5,400
per sq ft in secondary market.
In 1Q 2015, capital values remained stable across all
the micro markets, however capital values decline by
3% QoQ in Golf Course Road. Rents across all the
micro markets were remained stable.
In a major court decision this quarter the Punjab and
Haryana High Court freed a stay on issuing change of
land use (CLU) licenses to builders and on acquiring
land to develop residential and commercial properties.
This will help to unlock the valuable residential
investment in the market and will pave the way for new
licensed colonies and remove the hurdle for developers.
Colliers View
There have been significant delays in completion of
most of the infrastructure projects in Gurgaon, but the
real estate market is expected to reap significant
benefits post completion of these projects, thus we
expect that the mid range and affordable schemes
projects will continue to see traction in near term,
however capital values will remain stable in both
primary and secondary market.
Copyright © 2015 Colliers International.
The information contained herein has been obtained from sources deemed
reliable. While every reasonable effort has been made to ensure its accuracy, we
cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are
encouraged to consult their professional advisors prior to acting on any of the
material contained in this report.
Colliers International (India)
Property Services Pvt. Ltd.
Technopolis Building, 1st Floor,
DLF Golf Course Road, Sector 54
TEL +91 124 456 7500
Average Capital Value Trends
Source: Colliers International India Research
Average Rental Values
Source: Colliers International India Research
Senior Manager
Residential Services| Gurgaon
National Director
Residential Services
Manager
Research Services
National Director
Valuation & Advisory
Services and Research
Director
Residential Services| India
Associate Director
Research Services
