High price tags, no buyers
Potential buyers are preferring to stay away as properties in premium Delhi areas are put up for sale at prices that are ridiculously expensive
The buzz around high-end properties can never be toned down – no matter how badly or well the economy is doing. And premium areas around Delhi continue to be grist for the gossip mills. Suddenly, a lot of properties are on the market in areas previously thought to be saturated with hardly any owner ready to sell. The price tags are, however, so high that potential investors are getting put off and staying away, waiting for good deals to come their way.
Let’s look at what’s available. The mother of all asking rates for a bungalow on the prestigious Aurangzeb Road in the Capital is a whopping ₹ 651 crore. Those in the know say that the property is spread over 54,009 sq ft with a built-up area of about 15,000 sq ft, and when sold will be one of the priciest.
In the posh Malcha Marg area, an erstwhile maharani’s two-and-a-half storey, 3,375 sq ft house is priced at ₹ 60 crore and has many potential buyers lined up.
In the Connaught Place area, a 7,200 sq ft plot is on sale for ₹ 275 crore. Another vacant property of 2,000 sq ft is available for ₹ 125 crore. Enquiries are coming in from potential buyers but the properties have remained on the market for about six months now.
Notwithstanding the major slowdown in the real estate sector, Delhi’s affluent are in no mood to slash prices, putting up their homes and commercial properties for sale with price tags of over ₹ 100 crore. Surprisingly, agents claim such prices are “still not that high,” going by the value and location of the properties. A 10,800 sq ft house in the upmarket colony of Jor Bagh earlier this year was snapped up for ₹ 140 crore by a reputed company.
The flip side to all of this, however, is the reluctance of the super rich buyers to clinch a deal. It is not that there is a dearth of millionaires or even billionaires who can dig very deep into their pockets for a prize property, but many of them are now being cautious, say property agents. The major reason is that the asking rates of properties in premium areas is absurdly high, and even appear irrational at times. Many prospective buyers then wonder whether it’s worth their while to invest such huge sums and get something of value.
It was very difficult to find vacant properties of 9,000 sq ft or above two years back in the already saturated premium property market, says Capt Sabharwal of The Shelter, a real estate agency. Now, things have changed in areas like West End, Shanti Niketan and Vasant Vihar. West End has three highend properties for sale, each of about 10,800 sq ft, with prices ranging between ₹ 90 crore and ₹ 100 crore, depending on the location and property. Four properties again of about 9,000 sq ft each in Shanti Niketan are available for prices ranging from ₹ 85 crore to ₹ 90 crore. In Vasant Vihar, there were 10 properties available for about ₹ 75 crore each. These prices, according to Capt Sabharwal, had fallen about 10% to 20% from last year.