Demand-Supply and Price Trends in Noida-G.Noida (Summary Q1 2024 as per Collier International & Anarock)

Introduction

This report provides an impartial analysis of the residential real estate market in the National Capital Region (NCR) with a specific focus on Noida and Greater Noida. By analysing key insights from Anarock Property Consultants and Colliers International reports of Q1 2024, this report aims to help potential investors, homeowners, and real estate professionals understand current market trends, demand-supply dynamics, and rental income patterns, keeping relevant sub-regions in light.

Demand-Supply Dynamics

The prices for Delhi NCR have reached 1.5 times when indexed against the data from 2019, 2nd highest among all major tier 1 cities. This is a clear indication of the rising demand in the region. Despite one of the highest y-o-y growth the price per sqft remains at a reasonable level which allows for a larger substrata of real estate investors to chime in.

Price Trends

The average quoted rates for residential properties in Noida and Greater Noida have shown consistent growth in Q1 2024. Average price for two key micro markets are as follows: 

This price appreciation signifies strong demand coupled with limited supply, making these areas attractive for both end-users and investors.

Available Inventory

As of the end of Q1 2024, the NCR's available inventory stood at 86,400 units, reflecting a notable 9% quarterly decrease and a 27% annual decline. Interestingly, the inventory has been falling consistently for the 5th quarter, only such incident in the nation. This reduction in inventory, the largest among the top seven Indian cities, underscores the high absorption rate in the micro-markets, particularly Noida and Gurugram. The inventory is predominantly in the affordable and mid-segment price ranges, which together make up over 68% of the total available units.

New Launches

In Q1 2024, the NCR real estate market registered approximately 7,300 new residential units launched, marking an 11% increase compared to Q4 2023 and a significant 42% decline from Q1 2023. Greater Noida contributed 30% of these new launches, indicating substantial development activity in the region. Interestingly, luxury segment has one of the largest shares among new launches, with over 55% properties above 2.5Cr.

Sales Trends

The NCR recorded 15,650 unit sales in Q1 2024, accounting for 12% of total sales among the top seven Indian cities. Despite a slight decline of 3% compared to the previous quarter and a 9% decrease year-on-year, both Greater Noida and Noida displayed strong performance, contributing significantly to the overall sales in NCR.

Rental Income

For Q1 2024, the average quoted rent for a 2 BHK apartment in Noida-Greater Noida saw a steady rise. Average rent in two key micro markets are as follows:

This price appreciation signifies strong demand coupled with limited supply, making these areas attractive for both end-users and investors.

Market Outlook

The NCR real estate market, particularly in Noida and Greater Noida, is poised for a robust performance in the upcoming quarters of 2024. The region is expected to witness significant growth, driven by key infrastructural developments that will enhance connectivity and accessibility. The expansion of metro networks and roadways will play a crucial role in making these areas more attractive to potential buyers, thereby boosting demand for properties. Moreover, the luxury segment is anticipated to maintain its upward trajectory, fueled by pent-up demand and a growing preference for well-equipped homes that offer a high quality of life. This trend is expected to continue, with buyers seeking premium amenities and features in their dream homes. However, market participants should remain vigilant and closely monitor regulatory changes and construction activity to assess their impact on project completions and overall market dynamics. Any changes in government policies or regulations could influence the supply chain, leading to potential delays or disruptions in project timelines. Similarly, construction activity will be a key indicator of market health, with any slowdowns or accelerations having a ripple effect on the entire ecosystem.

Conclusion

This report is our interpretation of data from Anarock Property Consultants and Colliers International, offers a comprehensive overview of the residential real estate market trends in NCR with a focus on Noida and Greater Noida. The insights provided aim to assist investors, homeowners, and real estate professionals in making informed decisions in an evolving market landscape.

**This report is meant for purely informational purposes; readers are advised to conduct further research before making their investment decisions.**