At present, property price in the Gurgaon area varies between Rs 3,200-3,300 per sq ft against Rs 3,500-3,600 around beginning of 2006. Between the years 2002 and 2005, price in this area had seen a 10-fold jump.
The Dwarka area zoomed on the realty radar towards middle 2005, when prices saw a sudden 40-50% jump, which was then attributed to completion of the flyover project and metro connectivity. Since then, price in the area has been growing steadily, and is close to Rs 3,500 per sq ft now. Prices in Noida in sectors bordering Delhi are about Rs 4,100 per sq ft against Rs 3,700 almost an year back. Similarly, in Delhi-bordering areas of Faridabad, such as Surajkund, property price has gone up to about Rs 2,500 per sq feet from Rs 1,800-1,900 in the last one year.
Present prices in the Kundli area, on the northern borders of Delhi, which was just about Rs 1,200-1,300 per sq feet in January 2006, has grown by 40-50% and now varies between Rs 1,900-2,100 per sq ft.
Experts say that genuine property buyers are mainly being guided by proximity to Delhi. Says TDI MD Kamal Taneja, “For a property buyer, distance from the central business district (CBD) and connectivity are the primary concerns. Of late, there have been many joint initiatives by both Delhi and Haryana governments to address infrastructure problems in areas close to Delhi on the northern borders. This has attracted a lot of investor interest in the area over the last 12-18 months.”
TrammellCrowMeghraj COO Santhosh Kumar notes that over the last one year, increased activity in the secondary market has put pressure on developers to rein in rampant price increases. “Many investors in the property market are in the process of unlocking their value. This has lead to secondary market rates in certain pockets in Gurgaon and Noida that are around 10-12% less than what developers want for new projects,” he said.
Also over the last one year developers have focused on bringing to the market top-end projects that range anywhere between Rs 70 lakh and Rs 1.25 crore. Property dealers agreed that in the supply of Rs 35 lakh to Rs 70 lakh projects have been very limited.
According to optimist experts, the slow-down in the Gurgaon area is also only a temporary phenomenon. Says National Real Estate Development Council (Naredco) deputy director Summit Jha: “This time, the real estate boom in the NCR is based on solid foundations. There may be minor corrections but by and large, there would not be a fall-out. There is a genuine demand for housing and once ongoing road and flyover projects in Gurgaon head towards completion, prices will bounce back.” (Source: The Timesnews Network)
Labels: Property