Upward price movement witnessed in NCR in areas of high consumer preference: Magicbricks PropIndex, April-June

49% localities in Delhi, 42 % in Gurugram, 63% in Ghaziabad, 28% in Greater Noida

and 34% in Noida see price rise

New Delhi, September 20, 2017:Magicbricks’ PropIndex for April – June 2017, the most awaited real estate quarterly report revealed that the overall realty market scenario remained weak in the Delhi NCR region in the quarter but upward price movement was witnessed in 49% localities in Delhi, 42 % in Gurugram, 63% in Ghaziabad, 28% in Greater Noida and 34% in Noida. The small price movement was witnessed amongst high consumer preference localities irrespective of the budget segment.

Mr. Sudhir Pai, CEO Magicbricks.com said, “Our latestPropIndex saw 51% rise in property seekers over the last 12 months in major Indian cities but the overall realty outlook for Delhi NCR region remained weak.Greater Noida has seen the highest quarterly price decline followed by Ghaziabad, Noida, Delhi and Gurgaon across all price segments. But we have also witnessed small price movement amongst high consumer preference localities irrespective of the budget segment. 49% localities in Delhi, 42 % in Gurugram, 63% in Ghaziabad, 28% in Greater Noida and 34% in Noida.”

Let’s have a closer look at real estate scenario across key regions:

Delhi: The City Index for New Delhi reflects price movement across 68 prominent localities. Both the consumer preference and supply of actively traded properties are dominated by the Rs 4,000-8,000 per sqft price segment. This segment caters to the middle class requirement and is concentrated in the western part of the city. Dwarka and Uttam Nagar towards South-West and Rohini towards North-West are the main localities in this budget segment. This price segment has seen a decline in prices as most (78%) of the underlying localities have seen a decline in the price level. This includes most of the sectors in Rohini and Dwarka as well as in Uttam Nagar.  Analysis across 68 localities shows that on an average, Under Construction (UC) properties continue to be more expensive than Ready-to-Move-in (RM) properties in the Apr-Jun 2017 quarter. While both RM and UC properties witnessed a decline in price, the decline was higher in case of RM properties. The weighted average price of RM and UC properties was Rs 10,040 per sqft and 10,360 per sqft, respectively.

Gurugram: The City Index for Gurugram reflects price movement across 73 prominent localities. The weighted average price for the city was practically stagnant as in the previous quarter. The weighted average price for Apr-Jun 2017 was Rs 7,738 per sq ft. This decline was on account of 56% localities witnessing decrease in average price in the quarter. Most of these localities are located in the eastern part of Gurugram. Analysis across 73 localities shows that on an average, Ready-to-Move-in (RM) properties were 6% more expensive than Under Construction (UC) properties. The price difference between RM and UC properties narrowed in the Apr-Jun 2017 quarter as price of RM properties remained stagnant while that of UC properties increased. The average price of RM and UC properties is Rs 7,871 per sqft and Rs 7,410 per sqft, respectively.

Noida:The City Index for Noida reflects price movement across 35 prominent localities. In case of the crucial Rs 4,000-5,000 per sqft and Rs 5,000-6,000 per sqft budget segments, which account for most of consumer preference and supply of actively traded properties in case of Noida, more localities had price decline than price increment. This segment consists of newly development/ under-development sectors with large apartment supply along the Noida- Greater Noida Expressway (Sector 68, 129, 137 and 143 etc.) and most of the sectors between Sector 74 and 79 (except Sector-77 and 78). In the Rs. 5,000-6,000 per sqft segment which covers prominent established sectors as well as some new sectors like 77 and 78, there was price decline in 5 out of 6 localities. The highest price decline was in the premium Rs 7,000- 11,000 per sqft bracket where price declined was by 3%. Analysis across 35 localities of the city shows that on an average, Ready-to- Move-in properties were 5% more expensive than Under Construction properties in the Apr-Jun 2017 quarter.

Greater Noida: The City Index for Greater Noida reflects price movement across 17 prominent localities. The price level across all budget segments in Greater Noida declined in Apr-Jun 2017. Most of the prominent localities in the city which account for bulk of consumer preference and supply saw a decline in the price level.  Analysis across 17 localities shows that on an average, Ready-to-Move-in (RM) properties were more expensive than Under Construction (UC) properties in the Jan-Mar 2017 quarter. While the weighted average price of RM properties was Rs 3,632 per sqft, for UC properties it was Rs 3,109 per sq ft. While the average price of RM properties increased by 4%, that of UC properties declined by 1%. Price of RM properties has been under pressure for the past few quarters and consequently, the difference in average price of RM and UC has narrowed from high of 23% to present 17%.

Ghaziabad: The City Index for Ghaziabad reflects price movement across 46 prominent localities. The weighted average price has declined further by 2% in the Apr-Jun 2017 quarter. At city level, about 63% localities witnessed price decline including high consumer preference. The weighted average price for Apr-Jun 2017 quarter stands at Rs 4,142 per sq ft. Analysis across 46 localities shows that on an average, Under Construction(UC) properties are more expensive than Ready-to-Move-in (RM) properties in the this quarter. While the weighted average price of RM properties was Rs 4,146 per sqft, the same for UC properties in the quarter was Rs 4,349 per sqft. The gap between prices of RM and UC properties in the Apr-Jun 2017 quarter widened because while price of RM properties declined by 2%, the price of UC properties increased by 1%.

In line with the market trend over the last two quarters, the overall outlook was weak in Delhi NCR region and is expected to remain week in the coming months. Localities like Uttam Nagar East, Dwarka More, Gurgaon Sector 56, 65, 67, 82 and 83, Noida sector 75, 76, 77, 78, 79 and 150, Greater Noida Ext, Vasundhra, Vaishali amongst others are expected to remain stagnant in the current quarter as well.

Corporate Comm India(CCI Newswire)