Residential Market Scenario:
The real estate market in the Capital has experienced large-scale as well as wide spread development in the last few years. Most of the residential construction in Delhi primarily constitutes of “Builder Floors” in the already developed areas. This is primarily due to the non-availability of land parcels in the city. After a long boom period in real estate market, the capital is facing overall slump in the property market. However, there are premium localities, which are not affected by the recession in global economy. Acc. To Mr. Manpreet Singh, Operation Manager, www.propertyvertical.com, “After seeing a downfall of 30-40% in prices of builder flats, there is no buyer willing to buy these properties. Whereas 20-25% declined has been noticed in the prices of plots, but the same situation prevails there also”. According to a survey report, held in Delhi, 61 per cent of 688 participants said they are willing to wait for up to 6 months. And 40 percent said they expect prices to fall further in the short term.
Contrary to the situation in some areas there are locations like Golf Links, Jorbagh, Sunder Nagar, Malcha Marg in South Delhi ; and Janak Puri, Punjabi Bagh, Rajouri Garden in West Delhi, where due to the non availability of sufficient supply, prices are stable. According to Mr. Ankush of Aggarwal Estates,”These luxury sectors have been perceived as recession proof. The capital values in Golf links and jorbagh is Rs.75,000-85,000/sq ft and in Maharani Bagh is Rs. 35,000-45,000/sq ft”. Chanakyapuri commands the maximum residential capital values of around 45,000-50,000 /sq ft. Mayur Vihar in East Delhi has seen the average capital values appreciate by over 100%since 2004.
Buyers have adopted a wait and watch policy so that they can pick houses in areas, where the rates are much in excess of their budget. According to Mr. Sahni, a property consultant in Janakpuri, “This is the right time to invest in properties as one can crack a deal in his favour. During this period one can easily get a 200 sq yard house in between 1.40-1.50 crores in Punjabi Bagh, earlier which was not possible”.
With the commissioning of Delhi Metro, the residential locations of Dwarka and Rohini have also experienced substantial appreciation in capital values where the values are in the range of Rs. 4,200-4,800/sq ft.
Commercial Market Scenario:
Delhi has clearly emerged as one of the fastest growing economies in India. The physical infrastructure in Delhi is counted among the best in the country and the state government is proactive in bringing contribution of private sectors to give a real realty boost in the state.
It is one of the most sought after destination for multinational companies, corporate business, investors as it provides world-class living standards and globally comparable business houses in the form of Business Centers and IT parks. Real estate business is growing at a speedy pace in this futuristic city of India.
Commercial Office Space in Delhi has been at a short supply since long and market players do not expect the demand to soften in the near term. Earlier if a company wanted to go for office space they generally looked at Connaught Place, Nehru Place, Okhla Industrial Area to name a few. But today new and quality developments have come up in areas like Jasola and Saket by developers like DLF, Uppals, Saluja Salcon, TDI and others.
Delhi’s commercial office space has been considered as recession proof as there is no effect visible on the prices though it has slightly hit the residential property market. Also the squeeze in the commercial property market has led to substantial gains for landlords and lesser across Delhi, pushing up rentals to unimaginable levels of Rs.100 to 150 per sq. ft and those who want to sell, are waiting for a good time, when they would get the apprised value of their properties that is after elections in March-April.
By Harsimran K. Kalra