Drop in Affordable housing launches impacted Gurgaon residential real estate in H1 CY18

New Delhi, August 28, 2018: Gurgaon the millennium city continues to see struggle in its residential real estate sector. Launches have reduced by more than 60% in 1^st half of 2018 compared to last year whereas sales have improved 21% over 1^st half of last year but on small base.

Key reason for drop in launches is reduction in affordable housing launches in Gurgaon. Last year Gurgaon had seen 5290 new units launched in <25 Lakhs budget range which has reduced to 1058 units only in H1 CY18. As per Haryana DTCP website, no new licenses were issued for affordable housing in 2018.

SohnaRoad contributed 37% to new launch units in H1 CY’18, followed by Dwarka expressway which contributed 28% to new launch units.Also these new unit numbers are driven by handful projects. For e.g. Mahira Homes launched around 1,300 units in January 2018 in Sector 68 on Sohna Road. This was the only launch on Sohna Road and was under <Rs. 50 lakhs budget segment. The second highest contributor in Launches, Dwarka Expressway reported a launch of nearly 1,000 units whereGodrej Meridien launched around 700 units in May 2018 in Sector 106 of Dwarka Expressway.

Gurgaon saw doublingof sales in 60 Lakhs to 1 Cr budget in H1 CY18 compared to H1 CY17 which reflects latent demand in mid segment housing in Gurgaon.Nearly 1/4^th of the total sales of the city in H1 CY18 reported in Sector 67 on Sohna Road and Sector 33 Sohna. Pyramid Infratech Urban 67A and Godrej Nature Plus sold nearly 500 units in H1 CY18 each.

Gurgaon also saw 80% increase in delivery of homes in H1 CY18. ~18000 unitswere delivered to buyers in H1 CY18 which is projected to increase to 22,000 in H1 CY19.

Unsold inventory in Gurgaon has come down to 31,500 units in H1 CY18 compared to 36,500 in H1 CY17owing to significant reduction in launches.

Gurugram Metropolitan Development Authority set the deadline of 18 months from June 2018 to complete the remaining patches of Dwarka Expressway. This region of Gurugram has significant potential once road gets completed, and will be major contributor to new launches in future.

“Gurgaon real estate was badly impacted due to non completion of road projects such as Dwarka Expressway, Southern Peripheral Road and Hero Honda Flyover. Even today, Dwarka Expressway is not complete though projects on this road are complete. Launches of affordable housing projects brought some cheer back into the market but 2018 has been disappointing even for affordable housing.  Unsold inventory levels in Gurgaon are at reasonable level and there is lot of latent demand which is looking for mid-segment housing.” Said Ankur Dhawan, Chief Investment Officer while releasing this report.

Corporate Comm India(CCI Newswire)