Res­i­den­tial real es­tate to be back on the growth track in the sec­ond half of the year; cap­i­tal val­ues to in­crease in the range of 10-12% year-on-year LO­CA­TIONS TO WATCH OUT FOR

HT Estates - - FRONT PAGE - Van­dana Ram­nani

For those sit­ting on the fence to buy prop­erty or wait­ing to sell at a de­cent profit, the re­sults of next year’s gen­eral elec­tions is likely to be a game changer. Realty ex­perts say that while cau­tious mar­ket sen­ti­ment will pre­vail at l east t i l l t he f i rst half of the new year, the post poll p h a s e wi l l con­trib­ute to the re­vival of the real es­tate sec­tor that has not been do­ing well over the years due to po­lit­i­cal and eco­nomic un­cer­tainty, high in­fla­tion and the de­pre­ci­at­ing value of the ru­pee.

The strong head­winds that the do­mes­tic econ­omy has been fac­ing since the last year due to struc­tural is­sues such as high fis­cal and cur­rent ac­count deficits, and de­lay in re­forms are ex­pected to re­main un­til the gen­eral elec­tions next year. As a re­sult, the first half of the year may main­tain sta­tus quo but im­prove there­after in the sec­ond half, says San­jay Dutt, ex­ec­u­tive man­ag­ing direc­tor, South Asia, Cush­man and Wake­field.

The sec­ond half of For end-users, there will be many op­por­tu­ni­ties avail­able both in the pri­mary and the re­sale mar­ket. “One has seen cor­rec­tion in prices, es­pe­cially for the new sup­ply com­ing into the mar­ket. This has pro­pelled de­vel­op­ers to take a cau­tious

For end- users, es­tab­lished l oca­tions such as Golf Course Ex­ten­sion Road, New Gur­gaon and Dwarka Ex­press­way are op­tions to look out for. For in­vestors, ar­eas close to Gur­gaon such as Bhi­wadi and Neemrana in Ra­jasthan, have the po­ten­tial to of­fer good yields Noida Ex­press­way of­fers res­i­den­tial op­por­tu­ni­ties for end-users want­ing to in­vest in a f ully es­tab­lished and de­fined cor­ri­dor that is well con­nected and has a so­cial in­fra­struc­ture in place. Greater Noida is a good bet for in­vestors who can the year is likely to wit­ness a grad­ual re­vival in ab­sorp­tion of res­i­den­tial units. Real es­tate cap­i­tal val­ues will also in­crease in a sub­dued range of 10% to 12% year-on-year pan-In­dia for the whole year, says Anuj Puri, chair­man and coun­try head, Jones Lang LaSalle In­dia.

Post elec­tions, fence-sit­ting in­vestors are likely to be­come ac­tive. The in­crease in ab­sorp­tion of res­i­den­tial units will help re­duce the cur­rently large in­ven­tory hold­ings of de­vel­op­ers.

A re­cently ob­served trend of a grad­ual fall in sup­ply in re­sponse to the sub­dued de­mand will only re­verse with a lag, wait for an­other five years as it is per­haps the only planned township in the NCR. Those in­ter­ested in Ya­muna Ex­press­way have to be pa­tient as the Greater Noida mar­ket will take off much be­fore Ya­muna Ex­press­way. Ya­muna Ex­press­way is likely to be a good long term in­vest­ment op­tion if one can get a ` 25 lakh af­ford­able ticket size unit in a good lo­ca­tion.

While Indi­ra­pu­ram is largely a sat­u­rated mar­ket, Raj Na­gar of­fers good op­por­tu­ni­ties for end-users due to its lo­ca­tion, price point and up­com­ing in­fra­struc­ture help­ing prices to strengthen in the sec­ond half. There­fore, pan-In­dia res­i­den­tial real es­tate prices are likely to go up fac­tor­ing in in­put-cost in­fla­tion and a grad­ual pick-up in de­mand, Puri adds.

The most sought-af­ter prop­er­ties among buy­ers will be those that are mid-sized and rea­son­ably priced, of­fer lo­ca­tion ad­van­tage and good in­fra­struc­ture. Th­ese will be homes in the ` 3,500 to ` 5,500 per sq ft seg­ment.

Se­lect lo­ca­tions may wit­ness healthy ac­tiv­ity and get good re­sponse from de­vel­op­ers, in­vestors and end-users due to on­go­ing in­fra­struc­ture de­vel­op­ments. Over­all res­i­den­tial mar­kets are ex­pected to wit­ness sta­ble cap­i­tal val­ues, ex­cept for those de­vel­op­ments that are over lever­aged and are not able to at­tract sales.

Post the elec­tions there will be a lot more clar­ity from both the po­lit­i­cal and eco­nomic stand­point, adds Rahul Gaur, CMD of Brys Group.

Mayur Vi­har-II Dil­shad Gar­den Va­sundhra En­clave

Vivek Vi­har Laxmi Na­gar Pat­par­ganj


Mayur Vi­har-III


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