Prices to stabilise in the long term in NCR
New stock expected to come up in the Capital under the land pooling policy to cost between 5,000 to 12,000 per sq ft
The new stock expected to come up in Delhi , as per the land pooling policy, is likely to be priced at ₹ 5,000 to ₹ 12,000, depending on the location. This is in line with prices in the NCR, especially areas such as Noida, Manesar, Sohna. Currently, housing stock in Noida is priced between ₹ 4,000 and ₹ 7,000 per sq ft and in Gurgaon it’s ₹ 12,000 per sq ft. The entire range fits into both the Noida and Gurgaon markets.
In the mid to long term with a steady housing supply coming up in the Capital, prices will stabilise in NCR, says Ashutosh Limaye, national director – research, JLL India.
But some sectors in Gurgaon close to Delhi, especially in Dwarka Expressway, may face a challenge once housing stock starts to come up in Delhi’s new zones.
Also the benchmark price for these properties is based on prevailing prices in Dwarka. This may pose a big challenge in the mid term, especially when products in Delhi start selling for ₹ 5,000 per sq ft. Today, many projects along Dwarka Expressway are going for over ₹ 10,000 per sq ft. If six years later, projects in Delhi sell for ₹ 10,000 per sq ft, the price appreciation potential of projects located in Dwarka Expressway near the Delhi border may get stunted, says Anckur Srivasttava of GenReal Advisers.
This will, however, not lead to reverse migration. People working and residing in NCR will not automatically shift to Delhi. Neither will IT offices and other corporates. The demand factors will continue to remain the same but prices will stabilise.
Another gradual impact will be that developers active in NCR Master Plan Delhi 2021 was notified in February 2007 and was to be reviewed within five years, keeping in view the changes during that period. The midterm review started in 2011. The operational guidelines have been notified only in 2015. The document was put in place to take care of the growth and the