Delhi NCR residential property pricing – festive season update
Oct 16, 2013
Source : The Times of India

 

DELHI: Over the last two quarters, the residential property market in South Delhi has shown only marginal appreciation in capital values and rentals. This could have more to do with the recent upward revision in circle rates in various zones than anything else. Supply and demand dynamics in South Delhi have been more or less constant, and the revision in circle rates has resulted in larger cheque amounts and lower potential for offloading cash in real estate transactions. This has, in fact, acted as a check on the anticipated price appreciation in South Delhi.

South Delhi residential markets such as Saket, GK1, GK 2, Green Park and Hauz Khas have not shown much price fluctuations over the last two years. The average pricing seen in Q1 2011 does not differ visibly from the current averages. Currently, residential property price points in South Delhi are in the range of Rs. 24,000-32,000 sq ft

In Gurgaon, almost all major micro-markets have witnessed significant variations over the 2011 levels. Super-luxury residential price points have definitely corrected, currently being in the range of Rs. 23,000-28,000 per sq ft as compared to the Rs. 30,000-35,000 per sq ft range two years back. Premium luxury projects in Gurgaon are currently priced between Rs. 12,000-17,000 per sq ft.

On Golf Course Road, normal apartments are currently priced in the range of Rs. 12,000-16,000 per sq ft as compared to the price range of Rs. 8,000-9,000 per sq ft two years ago. On MG Road, the current prices for residential apartments range from Rs. 10,000-12,000 per sq ft as against an average of Rs. 8,000-9,000 per sq ft in 2011.

Residential apartments on Golf Course Extension, which has a huge upcoming supply, are currently priced in the range of Rs. 8000-13000 per sq ft, while the corresponding figures two years back were Rs. 6,000-9,000 per sq ft. The current prices for apartments on Sohna Road range from Rs. 9,000-9,500 per sq ft, while the prices for comparable properties in same location at beginning of 2011 were in the range of Rs. 7,000-7,500 per sq ft.

Apart from the traditional high-demand residential micro-markets, other locations that are emerging as promising destinations are the Southern Periphery and DwarkaExpressway. Today, the Southern Periphery has properties priced in the range of Rs. 6,000-7,000 per sq ft as against the price levels of Rs. 4,500-5,500 per sq ft a couple of years back. Prices for properties on Dwarka Expressway are currently selling at rates ranging from Rs. 6,000-8,000 per sq ft this represents an appreciation of over 50 per cent over the corresponding 2011 levels.

The Gurgaon residential market has currently stabilized, and there is no scope for any significant appreciation in the near term. Gurgaon has transformed to being an end-user driven market from an investor-driven market – short-term speculators on the lookout for immediate capital gains have ceased to exist in this market. On the other hand, the Southern Periphery essentially remains a hotbed as at the current price points, as it has the highest magnitude of affordable options. The proposed widening of Golf Course Road, the construction of the underpass and the proposed expressway will boost connectivity is further going to improve significantly. This will help improve sales to some extent.

Developers in the NCR region have been hit adversely due to the drop in residential prices at a time when they are running high inventory levels. Residential sales have picked up only marginally over the last three quarters. Against this backdrop, boosting sales in the top-most priority for developers, who will use all means to cash in on the festive season. In this period, buyers can expect serious incentives and discounts. If the various offers currently being put out on the market do not elicit the required response, developers will be forced to reconsider their pricing.

Latest Realty News

Govt to decide soon on relaxing FDI norms for housing sector
Oct 16, 2013
DELHI: The government would soon decide on relaxing FDI guidelines for the housing sector, including easing the three-year lock-in period norm, a senior official in the DIPP said.
To unlock FDI, govt to ease lock-in period for realty
Oct 16, 2013
DELHI: Much to the cheer of foreign real estate developers, those investing in India’s construction sector might be allowed to exit before the mandatory three years stipulated at present. However, for that, they would have to complete the project and procure completion occupancy certificates from local authorities.
Commerce Ministry amends norms to prevent misuse of SEZ land
Oct 16, 2013
DELHI: Developers seeking to surrender special economic zones will have to give an undertaking that the land will be used in accordance with the recently amended guidelines so as to prevent its misuse.
SARE Homes launches ‘Club Terraces’ in Gurgaon
Oct 16, 2013
GURGAON: SARE Homes, an FDI developer of residential integrated townships across India, has announced the launch of its new project ‘Club Terraces’ in Sector 92, Gurgaon.
Cosmic Group all set to launch “Cosmic Cruise”
Oct 16, 2013
NOIDA: Cosmic Group is going to launch the spectacular project “Cosmic Cruise” which is set to become a landmark of North India. A place which is not just designed around work but the work and life balance.
Haryana govt’s policy for NOCs for land outside controlled areas
Oct 15, 2013
DELHI: Haryana government has approved a new policy for granting no-objection certificates (NOCs) in urban localities falling outside controlled areas. Haryana town and country planning department said that NOCs would be issued only in those cases where there was no violation of the provisions of Haryana development and regulation of urban areas Act 1975, and the land was not a part of any controlled area subject to fulfillment of prescribed norms or parameters.
Govt lists draft rules to implement Land Acquisition Act
Oct 15, 2013
DELHI: Government today came up with draft rules to implement the Land Acquisition Act with a focus on consent and social impact assessment to ensure that the rights of the farmers are protected when the land is acquired.
Service apartments: an indispensible part of real estate in Gurgaon
Oct 15, 2013
DELHI: An idyllic place for longer business trips, the service apartments offer the supreme blend of comfort and privacy of a home with the services of a luxurious hotel room at a much lower price
New Delhi traders rue sky-high land rates
Oct 15, 2013
DELHI: In the last five years, only 65, mostly commercial, properties in New Delhi Municipal Council areas have been converted from leasehold to freehold. Reason, the exponential increase in land rates—a crucial component in calculating conversion charges—from Rs 28,980 per sq metre to Rs 19.35 lakh per sq metre for commercial establishments.
NHB to get Rs 500-cr loan from UK for financing low-cost homes
Oct 14, 2013
DELHI: British government's Department for International Development will give National Housing Bank Rs 500-crore loan for financing construction of affordable houses in the country.

Latest Realty News Of State

Realty Talk's