Demand-Supply and Price Trends in Noida-G.Noida (Summary Q2 2024, as per Collier International and 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 analyzing key insights from Anarock Property Consultants and Colliers International reports of Q2 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.
Price Trends
The prices for Delhi NCR have reached almost 1.8 times growth when indexed against the data from 2019 the highest increase in all 7 major 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.
New Launches
In Q2 2024, the NCR real estate market experienced approximately 17,000 new residential units launched, marking a 133% increase compared to Q1 2024 and a significant 100% rise from Q2 2023. This represents a remarkable surge in new supply, with Noida witnessing the most significant growth with a 177% rise in new launches compared to the previous quarter. Interestingly, the luxury segment has one of the largest shares among new launches, with over 68% properties above 2.5Cr.
Sales Trends
The Delhi NCR recorded 16,600 housing unit sales in Q2 2024, accounting for 14% of total sales among the top seven Indian cities. Sales increased by an optimistic 6% compared to the previous quarter and a marginal 1% increase year-on-year. Both Greater Noida and Noida displayed strong performance, among all the micro markets Noida Extension (Greater Noida West) contributed 2nd highest share of sales at about 18% of the total sales in NCR. This is a 25% increase from the previous quarter. Notably, NCR is the only market region which has a q-o-q and y-o-y increase in sales.
Available Inventory
As of the end of Q2 2024, the NCR's available inventory stood at 86,900 units, reflecting a 22% annual decline when compared against Q2 2023. Interestingly, the inventory has been falling consistently for the 6th quarter. 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 62% of the total available units. Despite the fact that over 68% of the new launches are in the luxury segment.
Noida-Greater Noida Micro Markets Price Trends
As per data from Info Edge Independent Research Aug 2024, average prices in the micro-markets of Noida-Greater Noida are as follows:
| Region | Average Price per Sqft | Y-o-Y Change |
| Sector 10 Greater Noida West | 8400 | 76% |
| Sector 1 Greater Noida West | 9000 | 38.2% |
| Sector 16 Greater Noida West | 8000 | 49.5% |
| Sector 150, Noida | 11,050 | 25.6% |
| Sector 152, Noida | 13950 | 31% |
| Sector 93, Noida | 13500 | 49.2% |
Rental Outlook
The rental income has shown a significant growth in Noida and Greater Noida region. For Q2 2024, the average quoted rent for a 2 BHK apartment in Noida-Greater Noida
| Greater Noida West | ₹17,000 - ₹23,000 per month | 3% quarterly increase |
| Noida Sector 150 | ₹22,000 - ₹28,000 per month | 4% quarterly increase |
These figures highlight robust rental growth in Noida and Greater Noida, driven by increasing demand from professionals and families looking for affordable, well-connected residential areas.
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 building of new industrial hubs in these regions is playing 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, based on 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.**
Comments