Drop in affordable housing launches impacts Gurugram residential real estate

Gurugram, the millennium city, continues to see a struggle in its residential real estate sector. Launches have reduced by more than 60 per cent in first half of 2018, compared to last year, whereas, sales have improved by 21 per cent but on a small base. A key reason for the drop in launches, was the reduction in affordable housing units launched in Gurugram. Last year, there were 5,290 new units launched in the sub-Rs 25 lakhs budget range, which reduced to 1,058 units in H1 CY18. no new licenses were issued for affordable housing in 2018. Sohna Road contributed 37 per cent to new launch units in H1 CY18, followed by Dwarka Expressway, which contributed 28 per cent. Moreover, the new units were driven by a handful projects. For example, Mahira Homes launched around 1,300 units in January 2018 in Sector 68, on Sohna Road. This was the only launch on Sohna Road and was in the sub-Rs 50 lakhs segment. Dwarka Expressway reported a launch of nearly 1,000 units, where Godrej Meridien launched around 700 units in May 2018 in Sector 106. Unsold inventory in Gurugram fell to 31,500 units in H1 CY18, compared to 36,500 in H1 CY17, owing to the significant reduction in launches. The Gurugram Metropolitan Development Authority set a deadline of 18 months from June 2018, to complete the remaining parts of the Dwarka Expressway. This region of Gurugram has significant potential, once the road is completed and is likely to be a major contributor to new launches, in future.