Prime areas of the national capital are witnessing a plunge in prices of properties. Read on to find out the areas affected.
Housing prices in Gurgaon and Noida are experiencing stagnancy, and Delhi seems to have gone a step further. Prices of real estate in several prime residential neighbourhoods have come down by almost 20 percent from what they used to be in 2013. In contrast, housing prices in Noida and Gurgaon were quite stable.
Market experts have stated that the property market in Delhi NCR is under stress currently. Home buyers looking for flats in Delhi have attractive options to consider now. Prices of apartments in Delhi in posh neighbourhoods of Central and South Delhi such as Golf Links, Jor Bagh, Defence Colony and Vasant Vihar have shown a decline of 15 to 20 percent. The decline was first observed in 2013 and has stayed so in 2014 and 2015.
Areas such as Aurangzeb Road, Shantiniketan, Amrita Shergill Marg, Prithviraj and Westend have also witnessed price correction. However, the level of price correction hovers between 10 and 15 percent, unlike the premium neighbourhoods of Delhi.
In contrast, Noida and Gurgaon have shown steady capital values at Rs 5,500 to 8000 per sq. ft. and Rs 6500 to 17,000 per sq. ft. respectively. These areas have remained quite stable since 2013. As a matter of fact, those looking to purchase properties in Noida or Gurgaon can look forward to good discounts because of oversupply in certain micro-markets of the two cities.
The plummeting of prices for flats in Delhi and their stagnancy in Noida and Gurgaon have made investors turn to other markets such as Sohna, Neemrana and the L and J zones in Delhi. These areas have witnessed a hike of 15 to 35 percent in capital values.
On the whole, it can be unambiguously stated that the NCR Delhi market is under duress and hence valuation of properties for end users is quite food. There are several negotiable properties and distress sales for apartments in Delhi that investors and buyers can look into. These areas have well-developed social and physical infrastructure. Investors stand to earn good rental returns from them as well. The festival season of Diwali saw developers offer good cash discounts and freebies like gold coins and foreign trips to attract buyers.
Because this market is ideal for buyers, they should be cautious to not let go of a property they like, hoping for prices to drop further. It has been predicted that the real estate market will have a turnaround within six to eight months and property prices would start escalating again. If buyers come by a project that fits their list of needs, it would be a better idea to go ahead with the transaction. Chances are that the property would be liked by some other buyers who would not play the waiting game.
Those considering investment in Noida or Gurgaon should also take the plunge as their respective governments are taking suitable measures to make real estate appear attractive to investors again.