New Launches: A Year of Highs and Lows

The NCR housing market showed resilience and growth in Q3 2024, contributing approximately 15% to the new launches across India’s top seven cities, with around 14,100 units introduced. Although this marked a 17% decline from the previous quarter, NCR recorded a remarkable 53% year-on-year growth, the highest among these cities. Gurgaon led the charge with 47% of these launches, despite a 41% quarterly drop. Following closely were Greater Noida and Ghaziabad with shares of 22% and 18%, respectively. Ghaziabad, however, stood out with a remarkable 164% surge in new launches compared to Q2, solidifying its position as an emerging zone in NCR.

A major trend seen in this quarter was the dominance of ultra-luxury housing, which took a significant 64% share of new launches. While the luxury and affordable segments saw declines, the mid and high-end markets expanded their share, reflecting changing buyer preferences in NCR’s residential landscape.

Sales: Mixed Trends Amid Regional Highlights

As the third-largest housing market among India’s top seven cities, NCR captured 15% of total sales in Q3 2024. Sales in the region, however, dipped slightly by 6% from the previous quarter and 2% from the previous year, totaling around 15,600 units. Gurgaon maintained its dominance in NCR’s sales landscape, contributing 51% of total sales in Q3 2024, with Greater Noida and Ghaziabad following at 20% and 13%, respectively. Ghaziabad once again emerged as a significant player with a 19% quarter-over-quarter increase in housing sales, highlighting its growing appeal among homebuyers in NCR.

Inventory Trends: Declining Stock Points to Healthy Absorption Rates

NCR’s residential market saw a substantial reduction in available inventory, with approximately 85,500 units up for sale in Q3 2024. This marked an 18% year-on-year decline, the steepest drop among India’s top seven cities, with a further marginal 2% quarter-over-quarter dip. Gurgaon remained the focal point for available inventory, representing over 40% of the region’s unsold stock, while Greater Noida and Ghaziabad followed with shares of 23% and 13%, respectively. Notably, all zones except Ghaziabad and Faridabad experienced declines in available units, signaling healthier absorption across the region.

In terms of pricing, affordable and mid-segment homes dominated the market, accounting for 32% and 27% of available inventory, respectively. The inventory overhang in NCR was steady at approximately 16 months by the end of Q3 2024, reflecting balanced demand and supply dynamics in the market.

Key Project Launches: Spotlight on Prominent Developments

Several high-profile project launches underscored NCR’s robust market activity. Key developments include Gaursons NYC Residencies in Wave City, Ghaziabad, with 1,163 units priced at ₹10,000 per sq. ft.; Smartworld One DXP Phase II in Sector 113, Gurgaon, featuring 890 units at ₹17,999 per sq. ft.; and Ajay Eros Sampoornam Phase III in Greater Noida West, offering 726 units at ₹7,126 per sq. ft.

Micro-Market Performance: Rental and Capital Value Trends

The Q3 report highlights notable rental and capital value trends across NCR’s micro-markets. Greater Noida West, Dwarka Expressway, and New Gurugram saw average quoted rents ranging from ₹17,000 to ₹34,000 per month, with quarterly increases of 2-4%. Capital values rose consistently, with Greater Noida West and New Gurugram registering a 3% increase, and Dwarka Expressway an 8% hike, indicating a steady demand for both rental and owned properties in these areas.

NCR Real Estate Outlook: A Stable Yet Competitive Landscape

The NCR real estate market remains competitive, with fluctuations in quarterly trends balanced by long-term growth indicators. While the region faces challenges in inventory levels and sales dips, the substantial increase in high-end and ultra-luxury projects, alongside Ghaziabad’s notable rise in new launches and sales, paints an optimistic outlook for NCR’s residential real estate market going forward.

With ongoing development and infrastructure expansion, particularly in emerging zones like Ghaziabad and Greater Noida, NCR continues to evolve as a dynamic and diverse housing market, catering to a broad spectrum of buyers across different price segments.