Property Deals: Delhi Market Slows; Gurgaon, Noida Spring Opportunities
A close look at real estate market of Delhi shows you how the focus has shifted from the country's capital city to its suburbs in recent times. For many years now, Noida and Gurgaon realty markets have been attracting home seekers as well as investors equally. A major reason that has been driving people away from the main city to the suburbs is an infrastructure that is well-planned and offers swanky new constructions, with world-class amenities.
Good, old Delhi Delhi's old and former premium areas such as Defence Colony and Vasant Vihar are still holding on to high prices but the demand has only slowed down. Today, a premium buyer would quickly opt for a luxurious villa project in the National Capital Region (NCR) .Buyers' tendency to look towards suburbs has had an adverse impact on property prices in Chhattarpur, East Kailash, Janakpuri and Rohini; there areas have been witnessing a constant prices fall in property prices. Many other areas in Delhi are also in the red.However, when compared with the posh areas here, new developments inside Delhi have shown growth, be it Dwarka, the L-Zone, Mayur Vihar or Mahavir Enclave. This is another indication that money is flowing towards new developments. A latest plan by the Development Authority (DDA) to acquire more land to new areas across Narela, Dwarka and Rohini might bring more demand back to the city limits.
Gurgaon shiningDespite being home to about 250 Fortune 500 companies, millennium city Gurgaon is fast getting a bad name for its excess unsold inventory, standing at over 45,000 units. Adding to the inventory burden are many under-construction projects that took off at the same time.This situation led to an internal competition that had an adverse impact on Gurgaon property prices. The price fall, however, was marginal. A general slowdown in demand and an increase in the number of resale apartments in Gurgaon by investors has also made it tough for the area to record growth at present. Within , property prices has mostly seen a down trend in new areas, indicating a shifting investor interest. While new developments (Sector 103, 110, 111, 15 and 37) are witnessing a rise in price trend, old ones (Sector 99A, 93 and 24) are seeing a dip. According to PropTiger Data Labs figures, average property prices in Gurgaon currently stand at Rs 6,599 per sq ft up from Rs 4,405 per sq ft in 2010.However, this marginal drop in Gurgaon property prices is bound to be temporary, as home buyers are eyeing to jump in here to cash in on the opportunity.Prices at the Dwaraka- Expressway are also expected to pick up after a brief dip, owing to a court case on the project. The project got a go ahead recently. While forecasting growth of real estate in Gurgaon, one has to take into account a plethora of opportunities the city offers ---- the commercial growth, the city's proximity to the Indira Gandhi International Airport and various educational institutions, a good social infrastructure (don't forget the various swanky malls) and fine civic developments. These factors are sure to drive new wave of investments here.
Noida callingWhen compared in terms of the excess inventory, state of affairs in Noida is much worrisome than its peer Gurgaon. There is a huge number of resale property in Noida. However, property prices in Noida have been holding up much better than Gurgaon. From Rs 2,577 per sq ft in 2010, property prices in Noida have now jumped to Rs 4,163 per sq ft, according to PropTiger Data Labs figures.This is due to fewer under-construction apartments in Noida, as compared to Gurgaon. While the price trend has not been as bright as before, there are hopes that Noida will regain its sheen due to huge demand drivers. Areas such as Sector 1, 5 and 73 are showing good amount of growth in prices. In general, property prices in Noida have dipped only around one per cent or less.
(Katya Naidu has been working as a business journalist for the last nine years, and has covered beats across banking, pharma, healthcare, telecom, technology, power, infrastructure, shipping and commodities)