NOIDA/GURGAON: Housing sales have risen by over 20% in the NCR in the run-up to Diwali this year as compared to last year, showing signs of improvement in the property market that faced a slowdown in 2013.
Experts and property consultants say that this trend is likely to continue over the next few weeks, all thanks to a new government, which has managed to improve investors' confidence, and the attractive marketing strategy adopted by many developers.
"Last year was disastrous for the real estate business, no one was buying anything. But this year, the market is more optimistic, with the middle class coming out, making queries and even booking apartments. Clearly, there is a rise of bookings by over 20% as compared to last year," Vikas Sahni, the head of Property Guru, a property management and consultancy outfit, told TOI.
However, the sales are largely in the affordable housing segment, he said.
"People are investing in new projects, particularly in Noida and Greater Noida. Most are going for apartments below Rs 30 lakh. The biggest draw for this rise in sales is that one can payjust 5% of the amount and pay the rest on possession," Sahni added.
The other segment which has witnessed an upswing in the sales over the last few weeks is commercial space.
"Most of these properties come with an assured return tag which means that when someone books a space, the builder pays back the buyer 12% of the money invested, every year. This is higher than bank interest, so lots of people are simply going for commercial spaces so as to get a good return on investment. There is a rise of nearly 10% this year as compared to last year," Avinash Piplani, a Gurgaon-based real estate expert, said.
However, Indrish Gupta, the co-founder of the Noida Extension Flat Owners Welfare Association, has a word of caution for investors.
"Festival season is a great time to buy a property, but we urge the buyers to be cautious about a few things while booking a flat. They should clearly understand the layout plan, sign documents carefully, get full disclosure from builders on the sundry permissions like environment and other certificates and then invest their hard-earned money," he said.