ncr residential market continues to disappoint;...
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News Release
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NCR residential market continues to disappoint; launches,
absorption at 6 year low: Knight Frank India
New Delhi, January 28, 2016: Knight Frank India today launched the fourth edition of its flagship half
yearly report - India Real Estate. It presents a comprehensive analysis of the residential and office market
performance of the NCR market for the period between July–December 2015 (H2 2015).
Residential Takeaways:-
NCR realty blues! New launches drop by a stunning 24 % in H2 2015
Sales fail to pick up despite clarity on legal issues, rate cuts
Launches, absorption at 6 years low across all micro markets;
Premium markets under tremendous pressures; Noida badly hit; if things doesn’t change, it will be
very hard to recover
NCR Residential Market Trend
34,5
77
45,0
00
29,4
58
34,0
00
28,0
00
20,6
30
25,0
00
23,8
00
4,400
4,444
4,511
4,578
4,300
4,400
4,500
4,600
-
10,000
20,000
30,000
40,000
50,000
H1 2014 H2 2014 H1 2015 H2 2015
Rs/
sq f
t
Nu
mb
er
of
un
its
Launches Absorption Weighted Average Price (RHS)
News Release
Office Takeaways:-
NCR bucks the trend! Office absorption sees a 10 % dip in H2 2015
Total absorption during H2 stood at 3.7 mn sq.ft; while 7.4 mn sq ft of office space came into the
market
Pent up project completions in H2 has pushed the vacancy levels to 22 %
Gurgaon emerges as the only bright spot within NCR in H2 2015 with 66 % absorption
Instead of high volumes, high value transactions dominated the market in 2015
New completions and absorption:-
Speaking on the findings, Rajeev Bairathi – Executive Director, North and Capital Markets, Knight Frank
India said “The NCR residential market continued to disappoint. 2015 was the leanest year in terms of new
launches, dropping to 63,460 units. Piling-up inventory and a low sales velocity led to the restricted supply. In
the near future, the market will not see significant improvement. On the other hand, the office market was
characterized by high value transactions. Absorption held steady. Gurgaon emerged as the most preferred
business district in NCR, taking up 66% of the total absorption pie. Lack of quality office space in key locations
led to rentals rising. Occupiers were seen to be willing to pay higher rentals for quality office spaces in
Gurgaon. We see this trend to continue in the coming months.”
Also adding on the residential findings, Mudassir Zaidi - National Director, Residential Agency, Knight
Frank India said, “The overall market has reduced to a fraction of what it was in the best of times. In the
residential segment, launches and absorption failed to impress although there is marginal increase in
transactions. However, whether the trend is sustainable or not, we need to watch that out. We do believe that
4.0
4.1
5.5
7.0
3.5
4.1
3.7
3.7
0
2
4
6
8
H1 2014 H2 2014 H1 2015 H2 2015
mn
sq
ft
New Completions Absorption
News Release
the market sentiments will get boost up if certain developments like reforms by government and regulatory
bodies are implemented.”
About Knight Frank India:
Knight Frank is the leading independent global property consultancy. Headquartered in London, Knight
Frank and its New York-based global partner, Newmark Grubb Knight Frank, operate from 370 offices, in 55
countries, across six continents. More than 12,000 professionals handle in excess of US$1 trillion (£643
billion) worth of commercial, agricultural and residential real estate annually, advising clients ranging from
individual owners and buyers to major developers, investors and corporate tenants.
In India, Knight Frank is headquartered in Mumbai and has more than 1000 experts across Bangalore, Delhi,
Pune, Hyderabad, Chennai, Kolkata and Ahmedabad. Backed by strong research and analytics our experts
work with clients to offer a comprehensive range of real estate services across advisory, valuation and
consulting; transactions (residential, commercial, retail, hospitality, land, capitals); facilities management;
and project management.
For more information, visit www.knightfrank.com
For futher information please contact:-
Abanti Banik (Knight Frank India)
Manager – PR & Branding, South
+91 9972998403