From the last two years, the residential property markets in India have been inactive. In Gurgaon real estate, until the second quarter of 2016, the region witnessed subdued transaction movement and limited new developments, with the demonetization drive further hitting the market. Cautious buyer attitude, fixed with high levels of unsold inventory, resulted in a slowdown in real estate construction and sales fields.
Even as there were many projects in the third quarter of 2016, the concentration of most builders continued to be on offloading unsold inventory with many attractive offers & discounts, finishing their ongoing development and deferring new project launches. Uncertainty around the implementation of the Real Estate (Regulation & Development) Act (RERA) in the first half of 2017 resulted in business activity remains low.
On the opposite side, the commercial real estate market continued to see strong demand. In the months April-to-June period in 2017, Delhi NCR observed about to 2 million square feet of commercial space absorption. A big part of this engage in was witnessed in the Gurgaon micro-market. Owing to continued tenant interest, Golf Course Road, DLF Cyber City and NH8 added to approximately 50% of leasing movement here. IT and SEZ spaces were the best choices by occupiers.
This optimistic grip in the office market, improving transparency around RERA, attached with the effects of the demonetization drive dissolving, is ensuing in business activity in Gurgaon’s residential segment witnessing an uptick recently.
According to researchers, Gurgaon’s supremacy as a business hub, availability of quality housing, constantly improving infrastructure and robust connectivity to other parts of Delhi NCR as well as expansion of municipal amenities in and around National Highway - 8, Golf Course Road and Dwarka Expressway are providing a force to the development of the property market. It is also serving to magnetize major investments into the sector. Institutional investors continue to stay optimistic on the market because of the commercial office segment being in overdrive and up-and-coming regions of Gurgaon offering world class residential development possibilities.
Most of the demand and supply for housing segment has been concentrated in the mid-end to high-end sections. This is analytic of a recovery in the city’s residential property market. For home seekers looking to invest in the market, the fast infrastructure development has pushed to expand the market for residential options. In the festive months ahead, real estate experts expect housing activity to more improve, even if slowly. Demand would be strong in the high-end/mid-end sections and mainly in the approaching micro-markets of the city comprising the Southern Periphery Road, New Gurgaon and Dwarka Expressway.
With a constantly rising population, a mushrooming office market, more reasonable prices in comparison of two years ago and affordable interest rates, the continuing demand dynamics for Gurgaon’s residential segment continue to be strong.
