Although absorption continues to be healthy in NCR, we believe increased FSI for group housing projects in Noida and fresh land auctions would cap rapid price rise. We estimate marginal 5-10% appreciation across the NCR over CY10-11. During Q1CY10, over 50,000 apartments were launched with delivery timeline of 36 months.
After registering a slowdown in new project launches in CY09 due to unabsorbed inventory and sluggish demand, Q1CY10 has seen the launch of a number of new projects in Gurgaon/Noida/Greater Noida. Over 50,000 apartments are planned to be constructed over CY10-12. The Noida-Greater Noida region has seen the highest number of launches (over 35,000 apartments) by major developers including Jaypee Infratech, Unitech,
Majority of the projects were launched in the Rs2,000-3,000psf price range with completion timelines of 36 months. Due to the enhanced FSI in Noida (2.5x for group housing projects from 1.5-1.75x earlier) and new land auctions in Noida Extension in H2CY09, about 75% of the new launches have been in the Noida/Greater Noida region with the thrust being on affordable housing projects.
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