An overview of micromarkets in Delhi-NCR during 2013
Amidst ongoing economic slowdown, liquidity crisis, rising construction costs and inflation, various micro-markets in Delhi-NCR have performed in different ways in the year 2013. However, on an overall basis, the national capital region (NCR) has performed rather slowly.
While few of the sub-markets in NCR have witnessed exorbitant growth, few of them tend to have slowed down from their earlier growth levels. Some micromarkets have managed to remain constant with neither growth nor fall.
Micromarkets witnessing slow growth
Gurgaon and Noida, which seemed to be all-time favorite destinations of investors, witnessed a low growth in 2013. Investors seem to have shifted to other emerging areas like Bhiwadi, Faridabad, etc. The number of launches has also reduced in Noida while Gurgaon witnessed good number of launches or rather an oversupply of new projects. But, the demand for properties had decreased in both the markets, mainly due to their high prices.
Some areas in Gurgaon like Sohna Road, Golf Course Extension Road, New Gurgaon, etc. and Greater Noida West (Noida Extension), Noida Expressway, etc. in Noida region have also recorded significant growth. Though the sales volume has reduced in these markets, the prices have hardly been cut.
South Delhi, which was among the most preferred destinations of the upmarket buyers, has been witnessing downward trend. The prices of properties have dropped by around 20-30 percent in the past one year and are even expected to decline further. A property worth a price of around Rs 20 crore is now available at Rs 15 crore.
Prices soar in Delhi suburbs
As an outcome of new amendment in the farmhouse policy by the Delhi Development Authority (DDA), the areas located in the outskirts of Delhi, where farmhouses are allowed, have witnessed around 50 to 100 percent hike in land values. The new policy allows farmhouses on one-acre plots, while earlier the minimum area required to develop farmhouse was 2.5 acre.
Farmhouses are permitted in Zone N (Northwest) of Delhi with 10 villages and Zone L (Southwest) with 27 villages. In Zone N, plots are priced around Rs 1.5 crore to 3 crore per acre, based on the location. In Zone L, plots are priced around Rs 2.5 crore to 6 crore per acre. Farmhouses are located in other zones as well. The new rule has created tough competition against independent properties available in prime areas in Delhi such as Golf Links, Jor Bagh, Shantiniketan, etc.
Areas in NCR with good real estate growth in 2013
The micromarkets located in the suburbs of NCR including Sohna, Bhiwadi, Dharuhera, Neemrana, etc witnessed healthy demand by homebuyers and investors. These areas are likely to benefit by factors such as location in proximity to Delhi, excellent connectivity and proximity to industrial areas and SEZs. The areas have been witnessing real estate activity in the recent times only and it would take more than 2-3 years for them to see enough development.
Noida Expressway and Greater Noida West (Noida Extension) witnessed enormous increase in property price during 2013. The real estate in Greater Noida West started booming after the National Capital Region Planning Board (NCRPB) gave clearance for the Master Plan 2021 of Greater Noida, following a court order in October 2011. Nearly 3 lakh housing units have already come up in this part and are currently under various stages.
With the entry of metro and improved connectivity, Indirapuram, Vaishali, Crossing Republic in Ghaziabad have also been doing good in terms of real estate.
In Faridabad, Greater Faridabad (Neharpar) has been witnessing rapid real estate growth with a healthy supply and demand ratio.
Rental values
Rental market across the NCR has remained almost stable in 2013. Most of the prime micromarkets had witnessed low to moderate hike in the rental values of residential properties. While areas like South Extension and Greater Kailash I and II observed about 12-13 percent drop in rental values during the first half of 2013, while micro markets such as Panchsheel Park, West End and Vasant Vihar observed about 9-11 percent fall in rentals.
