Residential demand has remained strong in the National Capital Region (NCR), despite being characterised as a speculative market owing to the predominance of investors. However, recent revision of the circle rates is expected to bring more transparency in the market.

According to a report by Knight Frank Research, Gurgaon witnessed the highest number of launches in H1 FY13, constituting about 33 per cent of the total launched units in NCR during this period.

Almost 45 per cent of the under construction units in the NCR market is expected to be ready for possession by end of 2013, as a bulk of projects were launched in 2010. Nearly 56 per cent of the under construction units fall in Noida and Greater Noida. Gurgaon constitutes nearly 20 per cent of the under construction units, the residential research report for December 2012 focussing on the NCR residential market landscape, has noted.

It added that the NCR residential market witnessed a dip in absorption in H1 FY13 compared to H1 FY12. Residential sales usually go up during the festival season and towards the end of the year due to the discounts offered by the developers. It remains to be seen if absorption levels will pick up in H2 FY13, the report adds.

Nearly 71 per cent of the absorption has been in the affordable segment housing with a ticket size less then Rs 50 lakh in H1 FY13.

The NCR region witnessed the launch of around 31,000 residential units during H1 FY13. Even though there was a dip of 22 per cent compared to H1 FY12, it is not alarming, the report adds.

Adding that the market shows a cautious outlook as sales have seen a dip, the research report estimates that unsold inventory levels are showing an upward trend. Rising property prices and high interest rates have also deterred genuine buyers from taking decisions.

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