Delhi NCR Property in Premium Demands

The National Capital Region is witnessing frenzied activity again. This time round, it is across segments and in all categories including plots, floors and apartments. The elections were a big driver. Affordable housing has caught the fancy of private developers in Delhi, and large developer groups from the NCR, such as DLF have launched affordable housing in Moti Nagar.

Values have gone up by 8-10 per cent across the board in established areas of Delhi and another 5-7 per cent hike is expected in capital values after the budget. The buyer profile includes end users, investors, builders and High Net Worth individuals.

In premium residential areas such as Defence Colony, Vasant Vihar and Greater Kailash there has been a significant number of transactions. As a result there is very little stock waiting to be sold in the market. Only those sellers who are asking for unreasonably high values are left with stock. According to a real estate consultant, "In a rising market the expectation of the owners rises faster than the market. In a falling market, on the other hand, their expectations fall slower than the rest of the market."

In the less premium market such as Saket, Hauz Khas and Green Park the rate of transactions has been low with values falling 15-20 per cent from peak values. In middle class areas such as Moti Nagar and Vikas Puri values have registered a steep fall of almost 30 per cent.

Mayur Vihar and much of East Delhi is riding the crest of the Commonwealth Games and the advent of the Metro. Areas which had previously recorded very low capital and rental values have already witnessed a 100 per cent rise. The reason for shifting of population from expensive Noida to the more affordable Mayur Vihar has been the rental values and the steadily rising demand for rental housing. The advent of the Metro will enhance these values further.

Delhi market has been witnessing a weakening sentiment because of the global economic slow down and consequent job losses. Today the active buyer segments are traders and businessmen. According to experts there is money with potential buyers but they are holding back, either waiting for market to bottom-out or because they are waiting for the economic scenario to improve. For serious end user buyers this is probably the right time to buy. After this once the Metro advances from across Delhi to the NCR, values are bound to rise. Today it is possible to negotiate with sellers but after a few months this may not be possible.

The retail market will take more time to stabilise. Neighbourhood markets and Local Shopping Complexes have scored over shopping malls which have seen a drop in footfalls.