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The National Capital Region (NCR) has shown resilience despite the pandemic, with the residential sales in the region witnessing a 65 per cent growth YoY in the CY2021 with 35,073 units sold during in the year.
New launches saw a 110 per cent YoY rise with the addition of 20,585 units in 2021.
The NCR’s office market witnessed resilience too with total office transactions in 2021 rising to 6.4 mn sq ft. New completions in 2021, saw a 38 per cent YoY increase, as per consultancy firm Knight Frank said in its India Real Estate: H2 2o21 report. New launches were around 5.2 mn sq ft.
The report further added that two-third of NCR’s sales volume was recorded in H2 2021, comprising of 23,599 housing units. In the wake of a strong demand momentum, average residential prices have started increasing with one per cent rise for the quarter ended December 2021.
Demand has been skewed towards bigger residential units with ticket size above ₹ 50 lakh faring well. In particular, the share of projects with ticket sizes above ₹ one crore was 37 per cent of the total sales in H2 2021. In the year-ago-period, the share of homes in this category was 31 per cent.
Office space leasing
In the office space segment; there was absorption of around 4 mn sq ft in H2 2021 compared to 2.1 mn sq ft in the year-ago-period or a 56 per cent YoY increase.
Gurugram witnessed 64 per cent of overall office space transactions in H2 2021 - 2.6 mn sq ft of office space; while Noida saw leasing activity of 1.1 mn sq ft (at par with H2 2020).
Office space leasing by the co-working sector posted a 29 per cent YoY growth over 2020.
The average transacted rents in NCR remained stable with rent for the office sector being around ₹82.1 per sq ft per month by October-December end.
“Gurugram, along with Noida, remains preferred destinations for occupiers with well-developed micro-markets and infrastructure development. The leasing activity remained robust in the second half of the year on account of sustained demand from a diverse pool of occupiers. The trend is here to stay in the year 2022. Bulk hiring in the IT sector will also propel demand for Grade A office spaces. Improved leasing volumes are also going to influence the rental growth in the upward trajectory.”,” said Mudassir Zaidi, Executive Director – North at Knight Frank India.
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