New Gurugram and Sohna have emerged as the third and eighth most active residential real estate micro-markets in the country based on the number of new launches in the current year, according to a report. Dombivli in Mumbai Metropolitan Region (MMR) was the top residential micro-market as it witnessed more than 7,100 new units being launched for sale while Panvel in MMR stood at the second spot.
The report released by real estate consultant on Monday that stated new Gurugram witnessed supply of 5,400 new units to become one of the hottest real estate micro-markets in the country.
Newly developed sectors from 58 to 115 have been described as new Gurugram in the report. The top 10 markets are Dombivli (MMR), Panvel (MMR) , New Gurugram, Badlapur (MMR), Mahalunge (Pune), Sarjapur road (Bangalore), Hinjewadi (Pune), Sohna, Electronic City (Bangalore), and Kondapur (Hyderabad).
As per the report by our real estate Consultant, another positive for the buyers in the city is that property prices declined at an average of 6% in new Gurugram, which is an exception as none of the other micro-markets in the top 10, including Sohna, saw any correction in the prices.
The report mentioned that though property rates on an average in 2016 was ₹6,460 per sq ft, it fell down to ₹6,087 per sq ft in 2019. Real estate experts said that the reason for price correction is that the number of buyers in the market has come down considerably and majority of the homebuyers are looking for ready-to-move-in properties.
Sanjay Sharma, a city-based real estate consultant, said that the reason new projects are being launched in Gurugram is that there is a potential for quality housing backed by reliable players, who can deliver. “The Dwarka expressway is coming up in this area, the Southern Peripheral Road is also being upgraded and both have significant traction in terms of habitation. If the Kherki Daula toll is shifted, it will also help in enhancing the sentiment,” he says.
Apart from that the presence of Manesar industrial area, the likely boost in connectivity with Sohna road and rest of city through SPR and shifting of a number of IT and corporate companies to cheaper locations on NH8 and Manesar is also the reason for increased real estate activity in developing sectors, said the experts.
Amit Kaicker, business head, DLF, new Gurugram, said that developers in this area have understood the pulse of the market, which is now end-user driven. “Projects backed by good developers and that are ready to move in or near completion are in good demand,” he said.
Adding a bit of caution, the market watchers also opine that it also has to be seen how much new supply is absorbed. “It’s important to see if the new units are being bought by the end user or investors. If investors are buying, it would mean that prices will also rise in near future,” says Pankaj Tomar, a real estate consultant.
Pointing to the launch of new projects in these micro-markets, According to the reports of Property Consultants, states that today, Indian housing demand is predominantly driven by end-users who are the actual buyers who intend to live in the homes they purchase, not sell them or rent them out. “The developers need to have execution capability, holding capacity and financial clout to be successful in this market,” By reports.