Housing demand fall in Delhi Ncr.

Q: Is property price remain high & unaffordable for end users in 2015 as demand is fall in current fiscal.

Kajal, Delhi-NCR

30th January 2015

Real estate News in Delhi

i am interested

supply & demand

end users

property price high

fy 16

india rating & research

economic growth

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Replies (3)

Hi All,
As per different sources, property prices have remained high and unaffordable to end-customers. While economic growth is likely to improve in FY16, property prices might not correct. This could lead to end-customers postponing purchase decisions. India Ratings & Research said in a statement. This is because better economic growth will boost net hiring by IT/ITeS and banking financial services insurance sectors and better customer sentiments will revive the expansion plans of both local and foreign retailers.

Jamuna sikhri, Delhi-NCR

30th January 2015

Comment

@ Kajal,
In my point of view, interest of investors in the sector remains high, especially in rent-yielding commercial properties. The relaxation of thresholds for foreign direct investment in real estate projects is likely to improve fund inflow. The announcement of the guidelines for introduction of real estate investment trusts and the clarification of tax pass-through status for such vehicles are also positive for the sector, as they improve fund availability to companies owning rent-yielding assets

Shivshankar, Delhi-NCR

30th January 2015

Hi Guys,

In my point of view, unrealistic pricing in many micro markets, high mortgage rates, dampened sentiments due to poor job and compensation growth and delay in project completions were some of the factors affecting the demand last year. Housing sales are unlikely to recover in the next fiscal as high property prices have made residential units unaffordable for end-users. The sales of residential units are not likely to recover during FY16. Any improvement in property demand will depend on not only a positive change in consumer expectations of economic growth, job and income prospects but also lower property prices.

Lohit Raj, Delhi-NCR

30th January 2015

Comment

Hi Kajal,
As per my knowledge, National Capital Region witnessed the worst housing demand in a decade with sales volume declining by 43% year on year in 2014. Demand for homes in Gurgaon fell most by 40%, the worst ever in the region's history. In top six property markets, sales volume fell 17% to 234,930 units in 2014 from 284,550 units in 2013. Mumbai, the most expensive property market in the country, also registered 9% on-year drop in sales at 67,715 units sold in 2014.

Sufia, Delhi

30th January 2015

Comment

@ Kajal,
According to me, a total of 40,575 units were sold in NCR last year, as against 71,421 units in 2013, while new launches saw 24% drop from 95,768 units in 2013 to 73,143 units last year . Around 7,900 units were sold in Gurgaon last year, compared with 13,200 units in 2013.

Sukhpreet, Delhi-NCR

30th January 2015