NEW DELHI: Home prices in many prime locations of the national capital have gone down by up to 20% since 2013 even as emerging locations in the region have seen a rise of 10-35%, according to property consultancy JLL India.
While prices in Gurgaon and Noida remained static at Rs 6,500-17,000 per sq ft and Rs 5,500-8,000 per sq ft, respectively since 2013, emerging NCR locations such as Neemrana, Sohna and Delhi's-J and L zones have stolen the show.
Residential prices in posh areas of south and central Delhi such as Vasant Vihar, Defence Colony, Jor Bagh and Golf Links witnessed a decline of 15-20% in 2013 and remained at those levels in 2014. A correction in prices was also observed in areas like West End, Shanti Niketan, Prithviraj, Aurangzeb Road and Amrita Shergill Marg, but in a lower range of 10-15%, says the report.
"The Delhi NCR market is under stress, which means that valuations remain attractive for end users. This also points to opportunities for distress sales and bargain buys for investors / buyers," says Santhosh Kumar, CEO, operations and international director, JLL India.
Kumar feels sound fundamentals of the emerging locations enabled them to beat the negative trend and saw very good price appreciation. "While Neemrana has massive industrial development along with good connectivity through the NH-8, Sohna promises the next wave of industrial and residential growth in Gurgaon. Delhi's J-zone has the location advantage of South Delhi and the L-zone is in an area adjoining the upcoming Dwarka-Gurgaon Expressway."
High home loan rates, liquidity crunch and lack of developer-friendly reforms have plagued the residential real estate market off-late. Delhi-NCR has been worst affected with an unsold inventory of nearly 154,000 units in 2014.
In terms of months, Gurgaon has unsold inventory of 33 months and Noida of around 38 months.