The housing market in Gurgaon continues to reel under a demand slowdown, even as values remain well above the affordable benchmark.
Sales and launches dip
Data available with PropTiger.com show that only 1,420 units were sold in Gurgaon, during April-June 2022, registering a 15% quarter-on-quarter drop. These numbers are certainly dismal for a city, counted among the most successful cities in the country. Well aware of the demand slump, developers have also been following a cautious approach when it comes to new supply — less than 2,000 new units were launched in the April-June period, indicating a sequential drop of 59%.
According to the PropTiger report, ‘Real Insight Residential – April-June 2022’, the highest number of new units were launched in the localities of Sector 89, Sector 33 and DLF Phase 3. On the other hand, the majority of the units sold, were in the micro-markets of Sector 89, Sector 106 and Sector 62.
The report by the REA India-backed online company also shows that 3BHK was the preferred configuration in Q2 2022, claiming 42% share in overall sales. As for the budget range, 51% homes that were sold during the quarter were concentrated in the over-Rs-1-crore-price bracket.
Also read: City watch: How Hyderabad became the most expensive property market in south India
Gurgaon has the highest inventory overhang of 82 months
As demand failed to pick-up, in spite of the better overall housing affordability backed by a record-low interest rate regime, inventory overhang in the city has reached precarious levels.
The extent of the demand slowdown in the city, once poised to join the league of commercially successful cities in the world, could be gauged from its inventory overhang – the estimated period developers in the city would take to sell off the existing stock, at the current sales velocity. Even though there were only 39,878 unsold units in this market as on June 30, 2022, developers would take 82 months to sell this off, factoring in the current pace of sales.
This is the highest inventory overhang seen in any city covered by Gurgaon-headquartered PropTiger. In contrast, in Mumbai, where the unsold stock is in excess of 2.72 lakh units, the overhang is 38 months.
Read other highlights in PropTiger’s Real Insight- April-June 2022 report
Unsold inventory in Gurgaon and India
| City | Unsold stock as of June 2022 | Inventory overhang in months |
| Ahmedabad | 64,860 | 33 |
| Bangalore | 70,530 | 26 |
| Chennai | 32,670 | 27 |
| Gurgaon | 39,878 | 82 |
| Hyderabad | 82,220 | 37 |
| Kolkata | 22,640 | 24 |
| Mumbai | 2,72,890 | 38 |
| Pune | 1,17,990 | 25 |
| India | 7,63,650 | 34 |
*Units converted to nearest thousands
Source: Real Insight Residential – April-June 2022, PropTiger Research
Check out: 2 bhk flats in Gurgaon
Property prices continue their upwards trend
| City | Price in Rs per sq ft as of June 2022 | YoY % growth |
| Ahmedabad | 3,500-3,700 | 8% |
| Bangalore | 5,700-5,900 | 7% |
| Chennai | 5,700-5,900 | 9% |
| Gurgaon | 6,400-6,600 | 9% |
| Hyderabad | 6,100-6,300 | 7% |
| Kolkata | 4,400-4,600 | 5% |
| Mumbai | 9,900-10,100 | 6% |
| Pune | 5,400-5,600 | 9% |
| India | 6,600-6,800 | 7% |
*Weighted average prices as per new supply and inventory
Source: Real Insight Residential – April-June 2022, PropTiger Research
The average value of new and unsold property in Gurgaon increased by 9% year-on-year in the June quarter, as the price rise in construction materials found its way to the end-user. Average rates of properties in Gurgaon stood at Rs 6,400 – Rs 6,600 per sq ft, as on June 30, 222.
Unlike most states that announced incentives to boost housing sales in the aftermath of the pandemic, Haryana not only failed to come up with any buyer-centric measure but also implemented a circle rate hike in January 2022, boosting property prices.
The negative publicity this housing market has attracted due to project delays and numerous cases of developer insolvency, have also led to the consistent drop in sales numbers, at a time when most other housing markets are on the mend.
Check out price trends in Gurgaon
See also: Gurgaon Pin code
