- May 15, 2024
Planning to buy a house in Delhi-NCR? Even Rs 5 crore budget may not guarantee home in brand-new project in prime locality – Times of India
Thinking of buying a home in Delhi-NCR? In the red-hot real estate market of Delhi-NCR, a budget of Rs 5 crore may not be sufficient to secure a home in a brand-new project by a reputable developer in a prime location. With homes priced at Rs 6 crore and above selling out within hours of launch, developers are not inclined to launch smaller sized apartments, leaving end users waiting for the current market uptick to stabilize.
According to an ET report, this trend is concerning industry experts as it is giving rise to speculative buying, which could potentially lead to a bubble in the property market.
Over the past 18 months, prices have nearly doubled across most micro-markets in the NCR, with developers refraining from introducing smaller-sized apartments. These trends have diminished the prospects for middle-class homebuyers to purchase property in the current scenario, an industry expert said.. Although per square foot prices may remain unchanged, developers may need to decrease unit sizes to provide options within the sub-Rs 5 crore category, the expert was quoted as saying.
Also Read | India to become world’s 4th largest economy by 2025 by overtaking Japan, predicts Amitabh Kant
DLF has sold apartments worth Rs 20,000 crore across three projects in the last 18 months, with all of them selling out within 72 hours of launch. The company maintains that most of its buyers are non-resident Indians and end users who tend to hold inventory for a longer period, unlike speculative buyers.
Godrej Properties generated more than Rs 2,000 crore each during launch-day sales of four projects, including three in NCR. Other developers, such as Max Estates and Signature Global, also reported selling out their inventory within an hour of launch.
Anurag Mathur, CEO of Savills India, believes that prices will stabilize now and won’t increase for the next six to eight years. He notes that the market was down for a long time, and any sudden uptick was expected, but the way new projects are coming up in the same price bracket is somewhat concerning. Buyers will currently have to hold their inventory for six to eight years, which is when another upcycle is expected.
A developer stated, “Lifecycle of a high-rise project is over five years and the developer should sell some part of it every year. The buyer is also confident of price appreciation in that case and the market is also able to absorb the inventories that are coming in.”
In recent years, Gurugram has emerged as a key luxury market in the region, with demand for gated communities intensifying during the pandemic, bolstering the city’s reputation as a luxury destination.
The sharp recovery in the luxury residential real estate has led developers to add about 45% of overall luxury stock in the last 5 years alone.
According to an ET report, this trend is concerning industry experts as it is giving rise to speculative buying, which could potentially lead to a bubble in the property market.
Over the past 18 months, prices have nearly doubled across most micro-markets in the NCR, with developers refraining from introducing smaller-sized apartments. These trends have diminished the prospects for middle-class homebuyers to purchase property in the current scenario, an industry expert said.. Although per square foot prices may remain unchanged, developers may need to decrease unit sizes to provide options within the sub-Rs 5 crore category, the expert was quoted as saying.
Also Read | India to become world’s 4th largest economy by 2025 by overtaking Japan, predicts Amitabh Kant
DLF has sold apartments worth Rs 20,000 crore across three projects in the last 18 months, with all of them selling out within 72 hours of launch. The company maintains that most of its buyers are non-resident Indians and end users who tend to hold inventory for a longer period, unlike speculative buyers.
Godrej Properties generated more than Rs 2,000 crore each during launch-day sales of four projects, including three in NCR. Other developers, such as Max Estates and Signature Global, also reported selling out their inventory within an hour of launch.
Anurag Mathur, CEO of Savills India, believes that prices will stabilize now and won’t increase for the next six to eight years. He notes that the market was down for a long time, and any sudden uptick was expected, but the way new projects are coming up in the same price bracket is somewhat concerning. Buyers will currently have to hold their inventory for six to eight years, which is when another upcycle is expected.
A developer stated, “Lifecycle of a high-rise project is over five years and the developer should sell some part of it every year. The buyer is also confident of price appreciation in that case and the market is also able to absorb the inventories that are coming in.”
In recent years, Gurugram has emerged as a key luxury market in the region, with demand for gated communities intensifying during the pandemic, bolstering the city’s reputation as a luxury destination.
The sharp recovery in the luxury residential real estate has led developers to add about 45% of overall luxury stock in the last 5 years alone.
