Property prices in Gurugram spike in June quarter record 9% YoY uptick: PropTiger Report
Gurugram, 08 September 2022: Gurugram property market continued to underperform in April-June 2022 quarter as both new supply and sales witnessed a dip as compared to the previous quarter as per the recent report by online real estate company, PropTiger.com backed by REA.
According to the report, titled Real Insight Residential – April-June 2022, new supply in Gurugram registered a drop of 59% with less than 2,000 new units launched in Q2 2022.
Property sales also registered a 15% QoQ drop during the same period, with only 1,420 units sold.
“Unlike most states that announced incentives to boost housing sales in the aftermath of the pandemic, Haryana failed to come up with any buyer-centric measures. Simultaneously, property prices have been moving upwards, impacting housing affordability in Gurugram, which coupled with a lack of market stimuli has pushed the homebuyer back to the fence in the city. ,” said Mr. Vikas Wadhawan, Group CFO, Housing.com, PropTiger.com & Makaan.com .
According to the report, the majority of new units were launched in localities of Sector 89, Sector 33, and DLF Phase 3. whereas maximum demand was concentrated in micro markets of Sector 89, Sector 106, and Sector 81.
In the case of Sector 106, the maximum (92 percent) residential sales were concentrated in more than the INR 1 crore price bracket, whereas projects that fall in less than the INR 45 lakh price bracket were preferred by homebuyers in Sector 89 and Sector 81.
The report by REA India-backed online real estate company also shows that 3BHK was the preferred configuration in Q2 2022, accounting for a 48% share in overall sales.
Gurugram has the highest inventory overhang of 82 months in the top cities of India
| Unsold Inventory | ||
| City | Unsold stock as of June 2022 | Inventory overhang in months |
| Ahmedabad | 64,860 | 33 |
| Bengaluru | 70,530 | 26 |
| Chennai | 32,670 | 27 |
| Gurugram | 39,880 | 82 |
| Noida | 16,110 | 44 |
| Hyderabad | 82,220 | 37 |
| Kolkata | 22,640 | 24 |
| Mumbai | 2,72,890 | 38 |
| Pune | 1,17,990 | 25 |
*Units converted to nearest thousands
Source: Real Insight Residential – April-June 2022, PropTiger Research
Slow sales velocity in the city has pushed the inventory overhang to 82 months, which means it will take a whooping 6.8 years for developers to offload the current unsold stock of 39,880 units.
“Gurugram is faced with a unique situation of the lack of the right product in the right price point and location. The current property market in Gurugram is predominantly end-user driven, where the majority of the home buyers are looking for a ready-to-move-in and functional project”, said Ms. Ankita Sood, Director and Head of Research, Housing.com, PropTiger.com & Makaan.com.
Ms. Sood further added, “Contrasting to the demand, only 35 percent of Gurugram’s unsold residential stock is in a ready-to-move-in stage, which in turn has put upward pressure on property prices for such projects. The city witnessed a 9 percent YoY growth in property prices in the first half of 2022 – a high amongst the top-8 cities. We see Gurugram’s residential property demand to move within close ranges in the coming quarters unless external sentiment boosters such as stamp duty waivers and developers’ discounts are offered to attract the fence-sitters.”
| National price card | ||
| City | Price in Rs per square foot as of June 2022 | YoY % growth |
| Ahmedabad | 3,500-3,700 | 8% |
| Bengaluru | 5,700-5,900 | 7% |
| Chennai | 5,700-5,900 | 9% |
| Gurugram | 6,400-6,600 | 9% |
| Noida | 5,200-5,400 | 2% |
| Hyderabad | 6,100-6,300 | 7% |
| Kolkata | 4,400-4,600 | 5% |
| Mumbai | 9,900-10,100 | 6% |
| Pune | 5,400-5,600 | 9% |
| India | 6,600 – 6,800 | 7% |
*Weighted average prices as per new supply and inventory
Source: Real Insight Residential – April-June 2022, PropTiger Research
According to the report, the average value of new and unsold property in Gurugram has increased 9% year-on-year on the back of a hike in rates of construction materials and premium charged on ready-to-move properties. Property prices in Gurugram are currently pegged at Rs 6,400-6,600 per square foot.