Average citywide capital values increased by 3-5% on a qoq basis, and average rental values saw increase of 2-3%,
says Cushman & Wakefield survey The Delhi-NCR region saw a significant increase in residential launches during Q1
2023, with a total of ~7,800 units launched, indicating over 111% increase on a qoq basis and a 109% growth compared to the same period previous year. Of this supply, 94% was in Gurugram, with micro markets such as Golf Course Road Extension, NH8, and Dwarka Expressway witnessing highest number of launches, followed by 4% launches in Noida. The mid segment accounted for majority of launches, with a 49% share, followed by the High-end/Luxury-segment with a 39% share, and the affordable segment with a 12% share. The historic launch of a residential project with a price range of INR 17,500-18,500
in the Golf Course Road Extension area indicates that the real estate market in that location is highly buoyant. This could be due to a variety of factors such as the location, connectivity, and amenities offered in the area, as well as the general positive sentiment towards the real estate market in the region. Also, the fact that prominent builders have lined up launches in
coming quarters further highlights the strength and potential of the market. Healthy number of launches were also recorded under the Haryana affordable housing scheme with 3,572 units launched in Sohna during the quarter. Gurugram prime markets imposed with 30% rise in circle rates The Haryana government has recently decided to increase circle rates for prime micro markets in Gurugram, including DLF Phase 1-5, Golf Course Road, Extension Road, and NH8. This new development in Gurugram, might impact the new transactions happening across the region, in the coming quarters. Marquee projects would remain unaffected largely, as their market rates are well above revised circle rates. Capital values appreciating for select projects; Prime markets witness price rise Owing to high demand for select category of projects, few developers raised their capital values this quarter. This is a trend that could continue in the near future. Many developers have been voicing concerns around rising input and labor costs, which are now getting passed-through to the buyer. Unless there is a change in
consumer sentiment, this price rise is likely to continue for a few quarters. During the first quarter of 2023, capital prices in both the mid and high-end segments of Delhi-NCR experienced some appreciation. Average citywide capital values increased by 3-5% on a qoq basis, and average rental values saw increase of 2-3%. Conversely, Noida prices remained largely stable.