Noida Property Supply vs Absorption Levels

Absorption levels in Noida/Greater Noida have picked up meaningfully over the last 2 quarters. Launch/sales activity has shifted to Greater Noida. This comes on the back of notification of Greater Noida new master plan and launch of Yamuna Expressway. Unitech’s launches seem to have done well in Noida, while Jaypee and other local developers have registered good pre sales in expressway/Greater Noida launches. Overall absorption run rate is trending back to 2011 levels, after a lull in CY12. Prices in Greater Noida / sectors surrounding have seen a sharp appreciation. Unsold inventory has come down meaningfully in the market. Deliveries in the market are about a year away, which will be the true test of the market.