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Gurugram, the millennium city, continues to see a struggle in its residential real estate sector. Launches have reduced by more than 60 per cent in first half of 2018, compared to last year, whereas, sales have improved by 21 per cent but on a small base.
Real estate launches and sales in Gurugram
A key reason for the drop in launches, was the reduction in affordable housing units launched in Gurugram. Last year, there were 5,290 new units launched in the sub-Rs 25 lakhs budget range, which reduced to 1,058 units in H1 CY18. As per the Haryana DTCP website, no new licenses were issued for affordable housing in 2018.
Real estate units launched in Gurugram by price range
|Budget range||<Rs 25 lakhs||Rs 25-60 lakhs||Rs 60 lakhs-one crore||>Rs one crore||Total|
Sohna Road contributed 37 per cent to new launch units in H1 CY18, followed by Dwarka Expressway, which contributed 28 per cent. Moreover, the new units were driven by a handful projects. For example, Mahira Homes launched around 1,300 units in January 2018 in Sector 68, on Sohna Road. This was the only launch on Sohna Road and was in the sub-Rs 50 lakhs segment. Dwarka Expressway reported a launch of nearly 1,000 units, where Godrej Meridien launched around 700 units in May 2018 in Sector 106.
Gurugram witnessed a doubling of sales in the Rs 60 lakhs to Rs one crore budget in H1 CY18 compared to H1 CY17, which reflects the latent demand in mid-segment housing. Nearly one-fourths of the total sales of the city in H1 CY18, were reported in Sector 67 on Sohna Road and Sohna’s Sector 33. Pyramid Infratech Urban 67A and Godrej Nature Plus, sold nearly 500 units in H1 CY18 each.
Real estate units sold in Gurugram by price range
|Budget range||<25 lakhs||Rs 25-60 lakhs||Rs 60 lakhs-one crore||>Rs one crore||Total|
Gurugram also saw an 80 per cent increase in delivery of homes in H1 CY18. Nearly 18,000 units were delivered to buyers in H1 CY18 and this is projected to increase to 22,000 units in H1 CY19.
|Possession of completed units||Projected completions (number of units)|
|H1 CY17||H1 CY18||Percentage change||H1 CY19||H2 CY19|
Unsold inventory in Gurugram fell to 31,500 units in H1 CY18, compared to 36,500 in H1 CY17, owing to the significant reduction in launches.
Gurugram real estate market: What the future holds
The Gurugram Metropolitan Development Authority set a deadline of 18 months from June 2018, to complete the remaining parts of the Dwarka Expressway. This region of Gurugram has significant potential, once the road is completed and is likely to be a major contributor to new launches, in future.
“Gurugram’s real estate market was badly impacted, due to non-completion of road projects, such as the Dwarka Expressway, Southern Peripheral Road and Hero Honda Flyover. Even today, Dwarka Expressway is not complete, though projects on this road are complete. While launches of affordable housing projects brought some cheer back into the market, 2018 has been disappointing, even for affordable housing. Unsold inventory levels in Gurugram are at reasonable level and there is lot of latent demand for mid-segment housing,” said Ankur Dhawan, chief investment officer, PropTiger.com.