Demand impulses have begun to return to Gurgaon real estate sector, an important bellwether that points to the way the market will develop in the country.
The city is an important realty market of the country, and especially in the National Capital Region (NCR).
Although Gurgaon was not unaffected badly by the slump that hit the country’s realty sector, there have been a drop in sales. New launches also had decreased, prices had come down and the overall sentiment nosedived in 2015.The city of Gurgaon has for long been a bellwether of the rapid growth in the country over the years, thanks to the presence of multiple multinational corporations. This factor has for long attracted countless expatriates and NRIs.
Overall, NCR has witnessed the country’s highest unsold inventory figures at almost 170,000 units. Gurgaon’s contribution to this burden is only around 22,000 unsold units, but this is still uncomfortably high.
Another source of worry is that almost 30 per cent of this unsold inventory is under construction, and located in perfectly inhabitable sectors.
The primary reason for this scenario has been a slowing economy over the years, as well as sky-rocketing prices. Buyers were waiting for prices to come down, while investors who bought properties in the previous boom cycle of 2009-10 did not want to commit more money with no clear returns.
With the liquidity crisis brought on by high unsold inventories, developers began offering freebies, discounts and all kinds of schemes to lure buyers.
The impact has been a visible and there have been reports of significant decline in prices by approximately 25 per cent over 2014. However, this has proved insufficient to catalyse a new demand boom.
Gurgaon has seen the maximum number of new launches within NCR, and that too in the affordable housing category under the Haryana government’s Affordable Housing Policy of 2013.Despite the current situation, the future of Gurgaon’s real estate market is positive and hopeful. With a projected GDP growth of around 7.5 per cent, a robust economy will boost demand.
An important influencing factor in realty demand is the Smart Cities project, for which Gurgaon is a strong contender. Its inclusion in this scheme will be a boon for its real estate sector.