The most popular parts of Delhi, Mumbai and Bengaluru where people invested in real estate in 2016

The real-estate sector had a neutral year last year with demonetization affecting it on the worse side.

According to experts, there is a high possibility of prices softening in sub-markets which have seen a lot of housing supply in recent years, which means some unheard upcoming areas are seeing traction like never before.

Based on the data collected by 99acres we have encapsulated the performance of the real estate market in Delhi - NCR, Mumbai, and Bangalore for the year 2016.

ALSO READ: Meet N. Chandrasekaran, Tata Sons new chairman, and Ex-TCS boss

Mumbai

The city recorded a 20 percent YoY rise in sales volume in H1 2016.
The affordable and mid-income housing segments drove maximum demand, especially in the micro-markets of Thane and Navi Mumbai, while the premium sector remained subdued.

• Bagging several big-ticket transactions in the year, Worli emerged as the new luxury housing destination in Mumbai. The locality recorded a YoY price appreciation of four percent.
• Navi Mumbai emerged as a popular destination amongst end-users. The region clocked a rise in property registrations between April-October 2016. Registrations, however, dipped by a whopping 45 percent, immediately after demonetization.

ALSO READ: Dating app Woo reveals what women are searching for in men

Delhi-NCR

• Developers restrained new residential launches in Delhi NCR, due to an inventory overhang and delays in obtaining construction approvals and clearances. New launches in the city, thus, dipped by 20-30 percent YoY.
• By the end of H1 2016, Delhi NCR had about 2 lakh housing units still unsold.
• Gurgaon and Greater Noida collectively witnessed about 80 percent of the overall sales reported in Delhi NCR. Property rates in the region have decelerated by approximately five percent YoY.
• By September 2016, nearly 25,000 housing units were handed over by developers in Noida and Greater Noida.
• Gurgaon’s cosmopolitan status and a growth-conducive environment continued to attract private equity firms. The region alone clocked investments over $1 billion across residential, commercial and land categories.
• The end of 2016 saw demonetisation severely hitting property inquiries and transactions across primary and resale markets in Delhi NCR. Sales volume dropped as an immediate aftermath of the move since buyers deferred purchase decisions anticipating the correction in property prices.

ALSO READ: Freecharge integrates with Indus OS to increase 30% user base in the next 6 months

Bengaluru

The city recorded approximately 21,800 new unit launches by the end of Q3 2016.

• Hebbal and Thanisandra Road in the North and Panathur-Varthur Road in the East led the influx of new residential supply in the city.
• More than 90 percent of the new project launches were reportedly made in the mid-segment category to cater to the active buyer base.
• Sales volumes augmented by 5-6 percent during the festive season. Availability of ready-to-move-in apartments in affordable price brackets turned out to be an ideal combination for fence-sitters.
• The rental market witnessed only a marginal hike in the year as supply superseded demand in localities near employment hubs. • Demand for plotted developments augmented near metro corridors due to higher Floor Space Index (FSI) being approved for projects falling within 500 m of the metro.