Activity Slowdown - Delhi NCR Property Market

Goldman Sachs visited leading sites of Realtors in Delhi NCR and after Research on the ground, here is a snapshot of finding

• Absorption has slowed down from levels seen in late 2009, which may be as a result of significant price hikes. Channel checks suggest that overall market absorption may remain lower than 4Q2009 until the end of the monsoon season, but steady nonetheless.
• Prices of some residential launches have risen significantly since March 2009, by 20%-30% in some cases. However, there have been a number of launches by small local developers, which may temper any further price hikes until after the monsoon.
• There is end-user demand in Gurgaon, but investors and brokers account for a high proportion of sales in Noida and Greater Noida
• Office vacancy rates remain high in Gurgaon, Noida/Greater Noida. Rents are down 40%-50% from the 2008 peak but have bottomed
• While absorption is low, it is picking up and the recovery is likely to be gradual rather than V-shaped