DELHI: Residential markets across the National Capital Region (NCR) were subdued in the first half of 2013, a report by global commercial real estate services firm CBRE said.
The report on the residential sector, ‘India Residential Market View H1 2013’, said Delhi witnessed stagnancy, concentrated in both the mid-end/high-end as well as premium housing projects.
Buyer interest remained largely focused on cost-effective suburban markets, with prime areas witnessing no new launches during the first half of 2013.
Capital values across most micro-markets of Delhi witnessed a decline owing to restrained demand levels, besides a cautious buyer sentiment. Developers delayed the launch of new projects, as they focussed on clearing existing vacancy levels, the report said.
While the prevalent market sentiment was one of caution, marginal price appreciation was seen in specific projects in Gurgaon on account of their relative affordability, developer profile and location.
Anshuman Magazine, CMD, CBRE, South Asia, said, “The NCR’s residential sector has witnessed lower levels of activity primarily due to inflated prices. Going forward, this will continue to dampen demand levels, particularly in the premium markets of Delhi and Gurgaon. Though the market is expected to witness developer focus on clearing existing inventory levels, launches by prominent developers are expected during the second half of the year – primarily in Gurgaon. The Reserve Bank’s latest ruling on disbursement of loans on special schemes, however, will further impact the residential market here.”
Developer focus remained largely on luxury housing, attracted by the higher returns offered by this niche segment, particularly in a few central and peripheral locations of the city, the report added.