Ongoing Market Trends for Delhi Properties

Delhi NCR lost a great deal of its realty traction in 2013; woeful economical conditions, considerably high inflationary rates, and devalued rupee kept panic-stricken buyers well-distanced from making transactions. In fact, 2013 was the worst in last 5 years when it came to real estate performance. Both residential and commercial sectors witnessed this ebb-phase. But, 2014 is expected to be like a breather to the current state of affairs. Commercial sector has already showing signs of recovery and residential market too seems to follow the path.

A large number of Delhi flats inventories are lying unused, thanks to lack of price correction.  Still-developing cities like Neemrana, Faridabad, National Highway 24, and Sohna have emerged as cost-effective options. On account of improving connectivity with Delhi NCR, these alternative markets are now attracting good number of buyers. For long-term investors, the areas can be the best bets as the prices are more prone to appreciation in the time to come.

On other hand, leased properties in Delhi are sharing a major proportion of sales. With Gurgaon and Noida having emerged as IT/ITeS majors, the city is witnessing more influx of immigrants and this, in return, has accelerated market for leased out inventories. Demand-supply ratio is a dismal value in almost all Delhi NCR cities except Noida.

The recently launched Land Pool Policy by DDA has resulted in price correction for South Delhi property, a region know for extortionate realty rates. The policy is all poised to bring abut construction of relatively affordable luxury properties over pooled lands, and this has resulted in fall of rates over South Delhi premier locales. 

Delhi Property Infographics

New Land Pool Policy to Create Alternative Markets for Delhi Property Hunters

Delhi Property at Makaan.com

With the announcement of Land Pool Policy by DDA, property Delhi is going to witness a new chapter of realty development. Under the policy, DDA would be able to vacate 70,000 acre of land acquired from farmers and owners. The land shall be used for creating highly developed residential spaces. Under the plan, about 100 residential projects are expected to come into vogue, and this will, in turn, see the development of about 14 lakh residential units.

Areas like Ghitorni, Chattarpur, Najafgarh, Massodpur, Dwarka, Mehrauli shall see the execution of these projects. Peripheral areas of Rohini and Najafgarh have also come under the ambit of this policy. Most of these regions are largely uninhabitable currently with almost no or little commercialization having taken place. As the plan is brought into action, one will see the transformation of these areas, in the time to come. This would be a good boost for Delhi property market, which has become almost stagnant due to extortionate rates and low demand. With Pool Policy coming into action, a new Land Pooling Cell shall be brought into existence to oversee the execution of this mega project.

 The owners of real estate property in Delhi who shall agree to pool their land shall get 40-60% of the developed land in return. For owners of land above 20 hectares, out of the returned 60% developed land, 40% will have to be used for residential purposes. For the owners contributing to land less than 20 hectares, 43% out of the returned 48% shall have to be used as residential spaces. As the policy comes into action, the land rate in the earmarked villages shall increase substantially. DDA has identified 200 such villages.

The areas marked for development shall act as alternative markets for property Delhi, which is, otherwise, known for its colossal price rates.

Property in Delhi: Prices Bent towards the Higher Side of the Graph

Property in Delhi at Makaan.com

Delhi is notorious for its property prices, that usually cost a buyer an arm and leg. The per square feet rates in most of the localities are too high. Though we have been hearing about the price correction in some of the high-end colonies, yet the rates are still inordinate. Take, for instance , Chittaranjan Park or Gulmohar park. The psf(per square feet) rate in both the areas vary between Rs. 23000-26000/ sq. ft. Same is the story for Vasant Vihar(34000/sq.ft.), Panchshila Park(26000/sq. ft.), and Defence Colony(32000/sq.ft.), The values mentioned here are only approximate, but one thing is for sure. The rates have gone through the sky, and for a middle-class end-user, making a purchase has become a thing only to dream about.

If you are on the look out for a property in Delhi, you should be aware of the average rates prevalent in different parts of the city. While some have been mentioned above, they do not cover all.  Vasant Kunj, Vikaspuri, Patparganj, Rohini, Ajadpur, Pitampura, Saket, Shalimar Bagh, East of Kailash, Janakpuri, and Kalkaji are the areas where the rates remain above Rs.10000/ sq. ft. They vary anywhere between 11000-20000/sq. ft.  The localities that have average rates a bit lower can be found in Uttam Nagar, Aya Nagar, Mehrauli, and Dilshad Garden.

In the last quarter; i.e. Jul-Sep, the real estate prices have seen a good appreciation in many localities. Budget areas like Uttam Nagar and Aya Nagar underwent the escalation of 12% and 7% respectively. An approximate 2% increase on quarterly basis has been witnessed in Azadpur, East of Kailash, Saket, Greater Kailash, and Vasant Viahr. The drop down was observed in Dilshad Garden. Gulmohar Park, Vasant Kunj, Motinagar, Mayur Vihar, Hauz Khas, and Safdarjung Development Area. So end-users who are eying on buying a property in Delhi, investing their money in these areas can be a good decision.

Property in Delhi/NCR

Property at Makaan.com

Delhi has been the hub of real estate business for long, thanks to the commercialization that it has seen over years. Property in Delhi/NCR remains a hot topic throughout the year, a scenario that is attributed to the availability of the residences available and the fast pace at which new projects have been coming into being in the market. In response to the high demand for property, the city and its surrounding areas have captured a huge real estate market.

As far as the demand for the residential property is concerned, the city has never seen a downturn. Being able to meet the demands of an avant-grade society, it has remained popular among both sellers as well as buyers of the real estate business. For the buyers looking out for property in Delhi/NCR, the choices are unlimited. The areas in and around Gurgaon, Noida, Greater Noida, Ghaziabad, Faridabad, and Dwarka have seen an unprecedented growth in term of construction of multistories. This, in turn, has attracted a large chunk of population to seek residential property in Delhi and its adjoining areas.

Let's us have a deeper look into the Delhi/NCR real estate scenario at present. Apart from Gurgaon and Noida, there are several areas in the city itself that are particularly popular among buyers. See, for example, the status of property in South Delhi. The localities like Hauz Khas, South Ex., Greater Kailash,  New Friends Colony, and Chankyapuri are the favorites of elite and upper middle class. Most of these colonies are posh and the houses are laced with all the mod cons. So, the rates are obviously higher here, soaring to crores! If  money is not the major concern for you and it is the luxury you are looking for, opt for a house here.

In other parts of the city like Bindapur, Karol Bagh, Uttam Nagar, Kohat, Naraina, Hari Nagar, and many others, the rates are relatively lower and within the reach of the middle and the lower middle. Though not much of the new property Delhi is popping up due to lack of any worthwhile space left, the vertical construction is still going on.

If you are an owner or a developer and have some property for sale in Delhi, advertising on real estate portals can be a really good idea. There are many property sites that are dedicated to the buying and selling business; have a look through them and search what you are looking for. Makaan.com is one such portal where you can find both the residential as well as commercial spaces to buy, sell, or rent in major cities of India.