Delhi-NCR real estate continues to flourish
With its world-class infrastructure, rapid urbanisation and large-scale employment opportunities, Delhi-NCR always makes its presence felt among the real estate investors. There are several factors responsible for the Delhi-NCR realty market to be eye-catchy to both investors and end-users.
The national capital region (NCR) has been witnessing growth in all the sub-sectors including housing, retail, hospitality and commercial, mainly due to the presence of several industries leading to employment and economic development.
Real estate in Delhi-NCR started growing in 2001 and lasted till about 2010, according to a Crisil report. Many realty experts are of the opinion that the Indian real estate sector has been a mixed bag of growth in the last decade.
Factors that led to realty development
Over a decade ago, along with rapid urbanisation, growing trend of nuclear families and apartment culture, were the key factors which kicked in real estate growth in the NCR. Besides these, factors like higher disposable income and FDI money in different sectors such as manufacturing, retail and service added to the growth. Banks and NBFCs encouraged lending during 2001-05, which enhanced the real estate demand. Observing this, developers too started to offer various schemes and discounts.
Over the years, along with the NCR region, even the adjoining areas like Sonepat, Faridabad, Rohtak, Meerut, Jaipur and Agra witnessed growth owing to improved connectivity through many new roads, expressways and rail links.
Growing population
The Master Plan of Delhi – 2021 estimates that the population in the city would reach nearly 20 million in 2016 and up to 23 million in 2021. According to the Census 2011 data, the population density was 112.97 persons per hectare. It is expected to move up to 225 persons per hectare in 2021 which indicates that there will be a huge demand for real estate properties.
NCR’s present scenario
Due to the recent slowdown, the NCR real estate market witnessed a declining trend. Consumer confidence seems to have been hurt because of the higher interest rates, inflation and the current economic outlook.
However, it is flexible enough to withstand the effects of slowdown and going forward, is likely to continue showing a positive growth trend. The residential real estate prices of residential properties are likely to rise due to the limited land supply coupled with an increase in construction cost.
The suburban regions of the NCR hold immense growth potential, say experts. The driving factors of the suburban areas are the substantial financial viability and affordability that they offer to both developers and end-users.
The most important factor responsible for making Delhi-NCR an interesting destination is its independent planning board. The board was formed to channel the flow and direction of economic growth and development along more balanced and spatially orientated paths. It sets its own functional plans for the various constituent sub-markets of Delhi NCR and makes sure that they properly get implemented too.
Delhi-NCR real estate market has performed well even during a sluggish market. It is making every possible effort to keep up equilibrium and builders have been focusing more on project completion than announcing new launches.
During Jan-June 2013 period, the NCR has witnessed a total absorption of 35,000 units, which is up by 18 percent from the same period last year. About 49,000 units were launched in H1 2013 showing a marginal increase of 11 percent against H1 2012. The demand is gradually getting stabilised, promising a healthy residential market in the future.
