The demand for residential space registered a meagre 1.8 per cent growth in Delhi in 2019, while the market is still struggling in Gurugram and Noida despite improving infrastructure and lower interest rates, a report has said.
Out of the 12 cities surveyed, 10 residential markets have shown positive market dynamics in the last quarter of the year, Magicbricks’s PropIndex Report Q4 2019 said. While some areas of the country faced downward pressure on prices and reduction in supply, searches remained robust in the affordable segment. The search trend suggests that India is looking for houses under Rs 4,000-5,000 per sq ft, it said.
“In Delhi, the demand has started to pick-up, but the options are limited. While the city prices remained low in the last 5 years, an increase of 1.8 per cent in the last one year indicates a positive development for the residential segment of the city. The residential demand in Gurugram has been dull. However, the city’s improving infrastructure could boost demand,” the realty portal’s report said.
It added Noida and Greater Noida markets are struggling to pick-up despite demand matching supply, affordability, and lower interest rates.
While Noida’s average prices fell by 10 per cent, Greater Noida witnessed an increase of just 3.6 per cent in the last 5 years. The Credit Linked Subsidy Scheme (CLSS) under PMAY has led to increased buyer interest in the affordable and lower-mid segment. Emerging localities in the price bracket of Rs 4,000-5,000/sq ft observed the highest consumer interest.
The premium segment witnessed price declines in most tier-1 cities, as above Rs 10,000 per sq ft buyers looked for negotiated deals.
The segments of Rs 20-30 lakh, Rs 30-40 lakh and Rs 40-50 lakh each accounted for 10 per cent of the searches at the India level, the report said.
In most of the cities, supply-managed to keep pace with the demand. Bengaluru has shown steady growth in the residential market, with a strong 25 per cent growth in the last 5 years.