DELHI: Prices of homes in upscale South Delhi have dropped by 20 per cent-35 per cent over the last one year, with developers and cash-strapped investors offering big discounts to dispose off their assets in a slowing economy.
Till about six months ago, discounts on new homes in the area were being offering only by developers facing oversupply. But with the economic situation worsening, this category of sellers has expanded to include cash-strapped investors and businessmen who are keen to sell the high-end apartments they had picked up some years ago.
The situation offers an opportune time for bargain hunters. "There is a lot of distress sale today, both by builders and investors," said Samarjit Singh, managing director of IndiaHomes, a property broking firm.
The slowdown in the economy has pushed investors and end-users out of the market. The ones still around are negotiating hard. "The asking price itself has become more reasonable today," said Mudassir Zaidi, national director, residential, at real estate consultancy Knight Frank India.
Another developer said his company is willing to negotiate with buyers, as the market is very slow. "If we get buyers, we are willing to negotiate," the developer, who did not wish to be named, said.
While prices have fallen across residential colonies in South Delhi, the drop is the most in Defence Colony and Vasant Vihar. For instance, a 2,000-sq ft apartment in Defence Colony, available for Rs 9.5-10 crore a year ago, can now be negotiated for anything between Rs 6.5 crore and Rs 8 crore, according to dealers. Similarly, the price of a 2,300-sq ft apartment in Vasant Vihar has dropped to Rs 10-12 crore from Rs 12-14 crore last year.
Inventory levels, too, have risen sharply. According to property consultants, residential areas such as Vasant Vihar, Defence Colony, Greater Kailash, New Friends Colony, Panchsheel Park and Gulmohar Park have about 3,000 unsold apartments, and investors are set to add another 1,000 soon.