Realty sector booms with launch of housing projects in Gurgaon

The surge in real estate market on account of festive season has led to launch of new housing projects in Gurgaon.

"The bookings for new projects are encouraging," said Sanjay Sharma, MD of Qubrex, a real estate consultancy. The improvement in demand has also pushed up prices in some of the new sectors. "For instance, a big developer's project in sector 104 started of at Rs 5350 per square feet. Now, the same property is going at Rs 7000 per square feet," he said.

He added that the prevailing high cost of property in Gurgaon contributes to the investors' interest in new projects. "Fresh booking involves low investment, between Rs 10 lakh to 20 lakh depending of the project. The payment is construction linked and it suits the investors," said Sharma.

The real estate industry has also seen low absorption rate in the city. "The new sectors of south Gurgaon (Sec 58 to 75 & 79 excluding 74 A& 75A), have seen a drop in absorption by 47% year to year. Likewise, in new Gurgaon (excluding NH-8 Manesar), the drop in absorption has been 31% year to year," said Samir Jasuja, CEO, PropEquity.

Around Dwarka Expressway, new launches have increased by 74% year to year while absorption has increased only by 12%. "This indicates that demand is lagging supply," said Jasuja. ,"One growth corridor which has bucked this trend in Gurgaon has been Dharuhera where new launches have dipped by 85% but absorption has increased by 27%. This trend is promising," he added.

Apart from the festive season, Jain says, the recent reduction in home loan interest rates has wooed more investors. "The reduction of home loan has played a role in changing the market scenario. Now, more buyers are booking in fresh launches," said Jain.

Source: articles.timesofindia.indiatimes.com/2012-11-12/gurgaon/35068222_1_new-sectors-gurgaon-samir-jasuja