Friday, September 28, 2007

Booming Property Market in Delhi NCR

In today’s day and age, eyes of the potential buyers and investors are all set on the NCR property market. Ongoing commercial developments in Delhi and NCR have led to an increase in the demand for office and residential space. Also, the limited supply of properties in Delhi is cited to be one of the important reasons behind this sudden boom in NCR real estate market. Parts of Haryana, Rajasthan, Uttar Pradesh and the National Capital Territory of Delhi constitute the NCR region and a boom in this region was first started with Gurgaon and Noida. Gurgaon which is touted as India’s outsourcing capital saw a sharp increase in its property rates within a span of few years. A similar trend was also seen in Noida thereby making it imperative for the real estate industry to look for newer locations.

Towns like Ghaziabad, Meerut and Faridabad are rapidly becoming the hotbeds for massive real estate development. Besides keeping in mind the escalating property prices, most of these areas are also well connected to the NCR thereby ensuring the properties turn into lucrative options for the buyers. But in the midst of aggressive real estate development in NCR, lies the dillemma of finding out the feasibility of making the right decision while choosing a property for commercial or residential purpose.

Delhi, the heart of the NCR region has already reached a mature stage in the real estate sector and this is evident with the soaring property prices and property rentals of both commercial and residential space in most of its prime locations. However the high property prices have not put a dampener to the real estate development as much can be seen happening in areas like Dwarka, Rohini, Mayur Vihar, Jasola and Patparganj. Well connected to Gurgaon and Noida along with the upcoming metro network has seen a spurge in the development of a large number of group housing societies.

Following close on the heels of Delhi are Gurgaon and Noida where the property prices have also increased tremendously within a short span of time. Boosted by continuous commercial development, the rentals in Gurgaon have gone up from approximately Rs. 40 per square feet per month to Rs. 120 per sq ft per month within a period of three years. Indeed, Gurgaon real estate, as the actual trendsetter, leads the property markets in different locations.

Whereas, the second hot favorite location are the twin cities of Noida and Greater Noida. Infact Noida is being projected as the next boomtown in order to lure more foreign investments. In order to meet the real estate demands big real estate companies such as Unitech are setting up exclusive township on the Noida – Greater Noida Expressway.

With so much of rapid development happening in the NCR region, it is only left to be seen how this shapes up the real estate sector in this part of the country. Do you think this would benefit the customer as it gives him more options or the skyrocketing property prices will act as a deterrent? Share with us your opinions and views on how and what you perceive about the growing demand for properties in NCR.

1 comment:

Realty Rider said...

There is good news for all the homebuyers who wished to own a dream house of there own but couldn’t possess due to the skyrocketing property prices. If you are waiting for property prices to fall by the end of the year to buy your dream house in the city, you may be doing the right thing! Realty experts predict a 10-20% fall in residential prices in and around metros.There is respite ahead for people who want to invest in residential property in metros. According to experts, this segment of the market is set to witness a slide in prices soon. That's because over five million sq ft of residential space is under construction currently in areas in and around Delhi, Mumbai, Chennai, and Bangalore. They say a majority of this supply will hit the realty market over the next 6-12 months. Since there are fewer takers for residential property in prime locations right now, it could force to bring down prices. In certain markets the reason is oversupply. In certain markets the size of the market is very small and the number of projects that have been announced, or which are being sold in the market are much more. Secondly, there is an absence of investors in the market, so it's a purely end-user market. The stock markets have corrected, peoples' perception that they have lesser wealth right now, also effects the real estate market. Experts say the demand for houses in the metros has already reduced by 40-50% in the last few months. While investors and speculators seemed to have left the realty market for now, end-users continue to drive the market but they make up only about 30-40% of the total market size.For more view-