NOIDA: The real estate market is showing signs of a recovery. According to a Q3 report released by real estate consultancy Colliers International, 4,000 housing units were launched in the city in the last three months compared with only 1,700 in Gurgaon. Of the total chunk of fresh launches across the country in the last quarter, 16% were in Noida alone. The Gurgaon real estate market seems to be shrinking according to the report, with only 7% of the pie of fresh launches reported here.
The study has been conducted nationally for the last three months for the cities of Bengaluru, Chennai, Pune, Mumbai, Noida and Gurgaon. In all, 25,000 apartment units were launched across these six cities in the last three months alone. Comparatively, of the total share of launches, Mumbai hosted 28%, Pune 23%, Bengaluru 17%, Noida 16%, Chennai 9% and Gurgaon 7%.
According to Colliers’ estimates, the cumulative launches in Gurgaon and Sohna region together for both Q1 and Q2 were 3,000 units. For Noida, the number of cumulative launches for Q1 and Q2 was 2,000. So with 4,000 unit launches in Q3 alone, Noida’s launches in the last three months have effectively doubled as compared to the past two quarters’ performance.
Surabhi Arora, senior associate director (research), at Colliers International India, said the residential market appears to coming out of the cycle of ‘low confidence, low investment’. “We are approaching a favourable period as the government and developers are working together to solve the prolonged issues of the sector. We expect the residential market to witness growth in most cities; mid-segment and affordable projects, with ready-to-move-in options should remain the preferred asset class among home buyers,” Arora said.
According to the report, all of Gurgaon’s launches have been in the mid-range segment. Most of Noida’s projects were launched in newly developing sectors along the Noida-Greater Noida expressway and Greater Noida. Despite the fact that most of the demand is in the mid-end segment, the city also saw the launch of a luxury project in Sector 124 at Rs 13,000 sq ft, making it the most expensive residential project launch of 2016.
Amit Modi, vice-president, Credai, Western UP, said the reason for Noida witnessing more launches than in the rest of the NCR was quite simply the lower land price. “So we do see more residential projects taking off in Noida in the times to come as both for the builder and the buyer, it is an end-users’ market, a residential hub,” Modi said.
Credits ET Realty