PROPEQUITY
Creating Investor Intelligence
REAL ESTATE UPDATE
GURUGRAM
RESIDENTIAL
Q1 2019
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PROPEQUITY
Creating Investor Intelligence
REAL ESTATE UPDATE | Gurugram
Q1 2019
Decrease in New launches and increase in Key launches during the quarter
absorption led to decrease in the unsold
stock Project Details
Micro
Market
Launch
Units
BHK
KEY INDICATORS-APARTMENTS
Mahira Homes Sector 103 800 2
Q1 2019 Q-o-Q Y-o-Y
New Launches Fusion Homes Sector 70 738 2
2,516
(units)
Units Absorbed Godrej Habitat Sector 3 288 2/3/4
2,918
(Total Market)
Wt. Avg. Price of Supply and Absorption Trend
5,984
(Unsold Units) Supply Absorption
20,000
Unsold Stock 32,576 15,000
Data is Provisional & is based on Actual Data Collated & Estimates based on
10,000
Previous Quarters
Units
5,000
As compare to previous quarter, the city witnessed a significant
change in new launches data as it decreased by approx. 43%. 0
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
2014 2015 2016 2017 2018 2019
Absorption also witnessed a considerable change as on Q-o-Q
basis it increased by approx. 100%+ but reduced by 27% on Y-o-
Y basis. Irregularity in new launches & decreasing absorptions trend has
been witnessed in the city between Q1 2014 – Q1 2019.
Weighted Average Price stood at INR 5, 984/sft which indicates Approx. 79,400 units have been launched & nearly 76,400 units
that the majority of the unsold units are in the premium segments. absorbed over the study period. Average Quarterly Launched
Units ~3,785 Units, the figure peaked in Q4 2014 with 14,323
Unsold stock in Q1 2019 witnessed a decrease of 2% when units. Average Quarterly Absorbed Units ~ 3,640 units, peaked
compare to the last quarter. in Q3 2015 with 18,329 units.
-Avg. New Launches -Avg. Absorption
Supply Demand
Demand has been seen gaining traction as the government
Gurugram witnessed a significant number of launches as the units
initiative to promote “Housing for All” has made a positive impact
both Q-o-Q and Y-o-Y basis increased. Almost (69%) of the on the market. As now, it is the buyers’ market the demand is
launch took place in Affordable Segment followed by Mid expected to grow in the coming future.
Segment (24%) The Affordable segment has been widely
supported by the government and it did witness new launches in
Key Micro-Markets basis Absorption
Total
Gurugram real estate market. Dwarka Expressway, SPR were the Total Absorption
Micro-market Available
Absorption Ratio*
major micro-markets that saw new projects being launched. Supply
Sector 67 A 444 444 100
Sector 95A 409 409 100
Sector 102 320 320 100
Sector 85 277 245 88
Sector 3 288 150 52
*Absorption Ratio= Total Absorption/Total Available Supply
Source: PropEquity Research
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Creating Investor Intelligence
REAL ESTATE UPDATE | Gurugram
Q1 2019
Sector 67 and Sohna witnessed some momentum in terms of Completed Supply (Units)
absorption. Demand was mostly witnessed in the Luxury segment
34% followed by Affordable segment at 33% and remaining 32% Approx. 16,000 units completed in 2018 which is 12% more the
in Mid segment respectively. delivery over the period 2017. This high volume of units in 2018
raises concerns of delivery delays given the track record of the city.
The annual committed delivery for the period 2019 is approx.
67,000 units which is 3 times the delivery over the period 2018.
Pricing Trend The Luxury segment has the majority share in the committed
delivery followed by affordable and mid segment.
The weighted average absorbed price in Q1 2019 was INR
6212/sft which is less than (19%) than the previous quarter. The
75000
weighted average launch price was at its peak in Q2 2018 at INR
60000
8,602/Sft while the lowest price was recorded in Q3 2017 at INR
Units
45000
3,400/Sft. Weighted average launch price a CAGR of --3.90% in
30000
the last four years.
15000
0
H1 H2 H1 H2 H1 H2
Weighted average available price in Q1 2019 was recorded at
2017 2018 2019
INR 5,984/sft same as compare to last year.
Affordable Mid Luxury
Infra/policy Update
Wt. Avg (Launch Price)
Wt. Avg (Available Stock Price)
Wt. Avg. Price (INR/Sft)
10000 Municipal Corporation of Gurugram begins work on 2 model
8000 roads, likely to wrap up by November. As part of the project, the
MCG will fix the roads, construct pavements, build public toilets,
6000
install benches, fencing, CCTV cameras, LED streetlights, create
4000 green belts, and remove existing encroachments, among other
2000 work. The shortlisted five roads for the project — the Hero Honda
Chowk-HCC stretch via Subhash Chowk, Rajiv Chowk-Railway
0
Station (along Old Railway Road), New Railway road, Mahavir
Q3
Q4
Q1
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q2
Q3
Q4
Q1
Chowk to IFFCO Chowk, and the Sector 4/9-9A dividing road.
2014 2015 2016 2017 2018 2019
The developer initiated road repair work on Arjun Marg in DLF
Phase 1, five days after they had started work in F Block of DLF
Phase 3. In DLF Phase 2 repair has started. The ₹35 crore work is
expected to be completed before August.
Rental INR/Sft/Month
60 Future Outlook
50
Gurgaon real estate market has seen a upward movement in sale
40 of the properties in the regions like Dwarka Expressway and SPR
30 particularly because of the improved infrastructure facilities.
20
Although the launches in the city has gone down as it is a general
trend before the elections. Over supply is an issue as over 65,000
10
are about be delivered in the coming year. And looking at the
0 buyers perspective, the unsold inventory in the coming quarters is
Golf Course New M.G. road Sohna Road Golf Course
Road Gurgaon Extension likely to go high
Rentals are for 2 and 3 BHK
The regions includes micro markets such as
Golf Course Road – DLF Phase 4, DLF Phase 5, Sector 42, 53,54
New Gurgaon – Sector 81, 81A, 82, 83, 84, 85
M.G. Road – DLF Phase 1, DLF Phase 2, Sushant Lok
www.propequity.in
Sohna Road – Sector 33, 47, 48, 67, 67A
Golf Course Extension – 58, 59, 61, 62
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