Property rates trend in some pockets of Delhi-NCR
Most of us are aware of the fact that the real estate sector of India has not been performing very well in the past one year. Owing to economic slowdown and many other factors have had their impact on the realty market and the effect is different in different markets.
Slowdown has hit all major cities in India, while the national capital region (NCR) has been adversely hit owing to drop in residential prices and huge pile of inventories. Developers took to offer discounts, incentives and freebies to accelerate housing sales. However the festival season brought in some hope to the sector, boosting sales and pushing in some liquidity to the cash-crunch developers.
Let us have a look at the recent realty market scenario of some of the micro-markets in Delhi-NCR.
South Delhi
South Delhi has been witnessing only a slight hike in the capital and rental values of properties located in the past five-six months. Both the supply and demand recorded in the residential sector of South Delhi localities seem to be almost constant in the recent times. However, this slow or no growth trend seem to have controlled the anticipated price appreciation in South Delhi.
At present, the residential properties in South Delhi are priced in a range of Rs 24,000 to 32,000 per sq ft. However, these property values do not differ much from the average price range of the properties during 2011. Residential markets in South Delhi like Saket, Green Park, Hauz Khas, GK1 and GK2 have not seen significant price hike over the last two years.
Gurgaon
Most of the key micro-markets in Gurgaon have recorded significant price variations in housing sector over the 2011 levels. Ultra-luxury segment residential properties are currently priced in the range of Rs 23,000 to 28,000 per sq ft as compared to the range of Rs 30,000 to 35,000 per sq ft in 2011. As of now, luxury units in Gurgaon are available at around Rs 12,000-17,000 per sq ft.
Most of the prime residential markets in Gurgaon have witnessed a hike in property prices. Some areas in Gurgaon have even recorded more than 50 percent growth compared to the same in 2011, in terms of capital and rental values. Besides, the developed residential areas, the emerging residential pockets in Gurgaon such as Southern Periphery, Dwarka Expressway, etc., have also witnessed significant hike in their property values.
| Micro-market | Average rate per sq ft (in Rs) | |
| At present | In 2011 | |
| Golf Course Road | 12,000 to 16,000 | 8,000 to 9,000 |
| Golf Course Extension Road | 8,000 to 13,000 | 6,000 to 9,000 |
| MG Road | 10,000 to 12,000 | 8,000 to 9,000 |
| Sohna Road | 9,000 to 9,500 | 7,000 to 7,500 |
| Southern Periphery | 6,000 to 7,000 | 4,500 to 5,500 |
| Dwarka Expressway | 6,000 to 8,000 | 3,500 to 4,500 |
However, most part of the residential market of Gurgaon is now stabilised and has less chances of further appreciation in the near future. The once investor-driven market is now converted into a end-user driven market though, there are few emerging pockets which essentially remains as hotspot destination for investors. Southern Periphery, having the highest magnitude of affordable options, is an emerging favourite destination for investors as well as buyers.
Several proposed infrastructure projects such as the Dwarka expressway, widening of Golf Course Road, the construction of the underpass, etc will further improve the pockets along the corridors besides giving a boost to the connectivity. This is likely to increase the number of residential sales in this region.
