The Millennium City — Gurugram — continues to see struggle in its residential real estate sector. The first half of 2018 has seen more than 60 per cent drop in new launches as compared to the same period last year. Sales, however, have improved by around 21 per cent over first half of last year, albiet on small base.
According to realty decoded report by PropTiger, the key reason for drop in launches is reduction in affordable housing projects in Gurugram. Last year 5,290 new units had been launched in Gurugram launched in <25 lakh budget range. This figure was reduced to 1,058 units only in H1 CY18. As per Haryana DTCP website, no new licenses had been issued for affordable housing in 2018.
“Gurugram 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 Gurugram 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 the report.
Sohna Road contributed 37 per cent to new launch units in H1 CY’18, followed by Dwarka Expressway which contributed 28 per cent to the new launch units. Also these new unit numbers are driven by handful projects. For e.g. Mahira Homes launched around 1,500 units in January 2018 in Sector 68 on Sohna Road. This was the only launch on Sohna Road and was under <Rs 50 lakh budget segment. The second highest contributor in launches, Dwarka Expressway reported a launch of nearly 1,000 units where Godrej Meridien launched around 700 units in May 2018 in Sector 106 of Dwarka Expressway.
Latent demand in mid-segment
Gurugram saw doubling of sales in Rs 60 lakh to 1 crore budget in the first half of this year as compared to the corresponding period in 2017. This reflects latent demand in mid segment housing in Gurugram. Nearly 1/4th of the total sales of the city in the first half has been reported in Sector 67 on Sohna Road and Sector 33 Sohna. Pyramid Infratech Urban 67A and Godrej Nature Plus sold nearly 500 units each in H1 CY18.
Focus on delivery
Gurugram also saw 80 per cent increase in delivery of homes in the first six months of 2018. As many as 18,000 units were delivered to buyers in this period, which is projected to increase to 22,000 in H1 CY19.
Unsold inventory in Gurugram has come down to 31,500 units in H1 CY18 compared to 36,500 in H1 CY17 owing 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.
Source : The Tribune India