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The home property market in Mumbai and Delhi has failed to look up in the second quarter of 2015, too. Fresh data from Colliers International India Research shows that across Mumbai, Delhi, Gurgaon and Noida, the value of property has either remained static or risen very nominally in some from the previous quarter. Also, there were hardly any significant launches during April to June.
In Mumbai, capital values in the most expensive and southern parts of the city — Malabar Hill, Altamont Road, Carmichael Road, Breach Candy, Napeansea Road, Peddar Road — rose by only one per cent on an average from the previous quarter. Property prices in central Mumbai, the western suburbs and the central suburbs saw no change. Rents for premium properties remained “stable”. “Similar to the previous quarter, the residential market in Mumbai saw low sales volumes in this quarter. Unsold inventory is now estimated at nearly 170,000 units for the Mumbai Metropolitan Region.’’
However, there was interest in the premium residential apartment from celebrities and industrialists. As for launches, very few developers ventured in the area.
Although there’s traction in the Mumbai market due to the approaching festive season, Colliers has said “capital values are unlikely to see any price correction and rents will remain stable in the medium term’’.
Delhi, like Mumbai, remained lacklustre. There was hardly any rise in capital values and rents declined by three to five per cent in some premium micro markets. Barring a few redevelopment projects, there were no new major launches. Colliers has described the prime lease market in the city as “stable”, though some deals were concluded by embassies and multinational corporations.
The festive season might help but capital values are expected to remain stable in the near term in Delhi. Rental values might appreciate marginally in select markets in the coming quarters due to limited supply and growth in demand.
In Gurgaon, capital and rental values remained stable, except DLF-I where rents rose by five per cent from the previous quarter. The number of units launched fell from the previous quarter, too. A little over 6,000 residential units were launched in the first quarter.
Colliers says “investors were still staying away from buying in the anticipation that prices would be reduced further”. However, end users were buying units in the mid to affordable range due to more affordable pricing and freebies. Construction was sluggish and no major project was completed.
The study has projected that “with volatility in the stock market, we expect investors will relook at the residential realty sector, and with improving economic sentiment we expect sales to improve in the affordable segment homes”.
Noida saw low sales volume, despite price discounts and freebies. Launches were limited and capital values remained unchanged across all micro markets. Rents, however, saw a marginal increase.
While the move by the environment ministry to clear the draft notification of the eco-sensitive zone around the Okhla Bird Sanctuary might give a boost to development in the area, “the market struggle is likely to continue in the coming quarters, as in Noida alone around 40,000 units are unsold’’. As with most other important realty markets, capital and rental values are expected to remain on the same level in the near term.
