Delhi NCR remains ‘stagnant’
Prices in Noida’s sectors 74 and 134 increased by 10% and Dwarka’s Sector 17 witnessed an appreciation of 9%, says a report PRICE TRENDS
The rental market in Delhi NCR performed better than the capital market, recording an annual growth of 3% in the first quarter of 2015 as compared to October-December 2014, says a 99acres.com quarterly report focusing on capital and rental price trends in the residential real estate market across seven major cities of India.
Property prices in Delhi NCR witnessed a marginal growth of 1% per sq ft in January- March 2015 over October- December 2014. Rental values went up by an average 3% in the JanuaryMarch quarter as compared to the same quarter last year. Supply of residential units dipped from 71% in OctoberDecember 2014 to 64% in January-March 2015. Houses with 3BHK units continued to be the most popular configuration of Delhi NCR’s inventory.
Commenting on the report, Narasimha Jayakumar, chief business officer, 99acres. com, said, “Real estate sentiment in Delhi NCR remained sombre with several projects embroiled in legal and delivery issues. However, with expansion of the metro network, the state government’s efforts to regularise illegal colonies and proposal to construct more affordable housing options, the real estate story of the city is expected to improve in the coming quarters.”
Dwarka’s Sector 17 was the top grosser in Delhi witnessing an appreciation of 9% in capital values in the first quarter of 2015. This sector was closely followed by sectors 4, 9, 10, 12 and 13, which clocked an increase of 8% each during the same time span, the report said.
Riding on the wave of new Unsold inventory and legal hurdles dented customer sentiments, although the Delhi Government’s decision to regularise illegal colonies in the city brought some cheer The UP Housing and Development Board and the Delhi Government came up with plans to develop budget housing options Most sectors in Dwarka sub-city were the highest grossers in terms of capital values due to its affordability quotient road infrastructure, Greater Kailash I and Lajpat Nagar recorded a spike of 8% in the quarter ending March 2015 versus the previous quarter.
East Delhi localities such as Vasundhara Enclave and Patparganj saw a dip in property prices to an extent of 1% to 2%. However, robust enquiries kept the market buoyant.
Plans to construct the metro corridor in Greater Noida failed to give a fillip to the market. Sectors Beta 2, Zeta, Pi I and II and Omicron saw prices dipping by 6-15%. In Noida, sectors 74 and 134 emerged as the top performers in the zone, with 10% increase in capital prices.
Capital values in Ghaziabad plateaued in the JanuaryMarch 2015 and OctoberDecember 2014 quarters despite the launch of various low and mid-range housing societies. Boasting of welldeveloped social infrastructure, Ahinsa Khand 1 was the top grosser with 7% spike in property prices.
New Gurgaon witnessed a massive surge in property values with prices increasing by 11%. Prices in Bhiwadi and Faridabad remained stagnant, while that in Gurgaon crawled up by 1%. Amongst the top non-performers in this zone were Manesar in Gurgaon and Sector 88 in Faridabad which recorded a price dip of 10% to 11%.
As far as the rental market was concerned, the top performers were Dwarka’s sectors 4, 10, 18A and 18B, where rental values increased by 15% to 23% in a year. Premium localities such as Defence Colony, Vasant Vihar and Anand Niketan from South Delhi recorded a drop of 12% to 16%.
Sectors Zeta and Zeta I in Greater Noida were top grossers, witnessing 14% annual hike. Rental values grew as a result of price feasibility and availability of ample properties in both furnished and semi-furnished conditions. Haphazard traffic movement and availability of affordable properties in more developed neighbourhoods led to a drop in rental rates in Sector 62, Noida by 10%. Absence of public transport and lack of social infrastructure adversely impacted the rental market of Sector 119, which saw prices dipping by 8%.
Ghaziabad saw demand for rental properties leaping by 5% as compared to the previous year. Located opposite the industrial areas of Noida, Sectors 62 and 63, Vaibhav Khand in Indirapuram recorded the maximum housing demand and therefore the highest spike in rental rates to the tune of 25%.