NCR real estate market thrives in Q3 2023: Gurgaon dominates new launches, Noida shines in sales

National Capital Region (NCR) contributed 8 per cent to the overall new residential supply amongst the top seven cities in India during Q3 2023, according to Anarock report. Approximately 9,200 residential units were launched during this period, reflecting a 9 per cent increase compared to the previous quarter. This figure is bigger when viewed on an annual basis, showing a 44 per cent surge compared to the same quarter in 2022.

zone-wise launches

Gurgaon emerged as the leading market for fresh residential launches, contributing 50 per cent to the overall NCR supply. Following Gurgaon, Noida and Ghaziabad made contributions of 33 per cent and 15 per cent, respectively. Notably, Noida stood out amongst all regions, experiencing a 248 per cent quarterly growth in new launches.

In terms of budget segmentation, the ultra-luxury category dominated, with 38 per cent share, marking the highest quarter-on-quarter increase amongst all segments by 28 per cent.

Home sales in NCR show mixed trends

The residential real estate sector in NCR recorded sales of nearly 15,900 housing units during the third quarter of 2023, representing a 13 per cent share of total sales amongst the top seven cities. While NCR saw a 6 per cent increase in sales compared to Q3 2022, there was a slight 3 per cent decline in sales when examining the data on a quarter-on-quarter basis.

Gurgaon commanded a 56 per cent share of the region's residential sales in the third quarter of 2023. Greater Noida, Noida, and Ghaziabad also made their mark in the sales landscape, each possessing a significant share of the market, with 15 per cent, 10 per cent, and 10 per cent of the total sales, respectively. Noida stood out as the sole market within NCR to exhibit robust growth in Q3 2023 compared to Q2 2023, boasting a 30 per cent surge in sales.

Available inventory and inventory overhang

NCR witnessed the highest year-on-year decline in inventory overhang amongst the top seven cities. The region had an available inventory of nearly 1,04,400 residential units, with a 6 per cent quarter-on-quarter decline. In terms of year-on-year data, NCR demonstrated the most substantial reduction, with a 21 per cent drop in available residential inventory compared to other top cities.

Gurgaon emerged as the dominant contributor in NCR's real estate markets, with 41 per cent of the total available stock. Greater Noida accounted for 21 per cent of the units. Notably, except for Noida, all zones within NCR saw a quarterly decline in their respective available inventory.

NCR's available inventory is primarily concentrated in the affordable and mid-segment ticket sizes, jointly constituting over 68 per cent of the total inventory. At the close of Q3 2023, the inventory overhang had reduced by 2 months on a quarterly basis, now standing at 20 months.