NEW DELHI: The national capital region has seen a positive outlook on home sales in the January-March quarter, says property advisory firm Knight Frank.
The NCR did witnessed a dip in sales velocity in the October-December 2011 quarter but managed to gather momentum in the next quarter. In the third quarter, Greater Noida witnessed the largest dip in sales because of the Noida Extension issue but in the last few months, confidence seems to have been restored.
However, NCR did not witness a steep fall in project launches in the last one-year, despite a slowdown in many other markets. In 2011, Ghaziabad contributed to nearly 34% of the number of project launches in FY 2012, followed by Gurgaon and Noida. Nearly 86,000 residential units entered the market in FY 2012.
As of March 2012, nearly 5,00,000 units are under various stages of construction in NCR, of which about 50% is expected to be ready for possession by 2013. Nearly 57% of this supply is in Noida and Greater Noida. Gurgoan has 19% of the upcoming supply. The NCR being the largest residential market faces challenges at the unsold inventory levels.
Even though the quantum of units launched in the NCR market is very high, Knight Frank says that unsold inventory will be absorbed two quarters ahead of the completion
The repo rate cut by the Reserve Bank of India is also expected to have a positive impact on sentiments of homebuyers. Projects that were stuck in Noida Extension are also expected to come online soon after clearance from the National Capital Region Planning Board.
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