HT Estates - - HTESTATES -

For all the pos­i­tives that can be high­lighted about Gur­gaon’s lux­ury homes mar­ket, the fact is that the cap­i­tal val­ues ap­pre- cia­tion trend in Gur­gaon has in fact slowed down con­sid­er­ably. From a re­mark­able ap­pre­ci­a­tion high of 17.8% year-on-year in 2011- 2012, the trend tapered down dras­ti­cally to 3.7% yearon-year in 2012-2013 and de­clined fur­ther to 1.1% year-on-year in 2013-2014.

At the cur­rent point in 2015, lux­ury cap­i­tal value ap­pre­ci­a­tion in Gur­gaon re­mains at this point. Cap­i­tal val­ues for lux­ury apart­ments av­er­age at around ₹ 11,425 per sq ft, though this fig­ure ap­plies only to ac­tively sell­ing projects and is not rep­re­sen­ta­tive of in­di­vid­ual projects which are sold out. Cap­i­tal val­ues three years ago ranged be­tween ₹ 10,900 to ₹ 11,300 sq ft.

Though there is not much to be cur­rently said for Gur­gaon in terms of ROI based on cap­i­tal val­ues growth, de­mand for lux­ury homes re­mains healthy. From our cur­rent mar­ket read­ings, buy­ers are not look­ing so much at ap­pre­ci­a­tion as on the op­por­tu­nity to se­cure lux­ury homes in Delhi NCR’s most glam­ourous, best- con­nected business hub.

Also, a sig­nif­i­cant amount of the de­mand for lux­ury homes in Gur­gaon comes from in­vestors geared to­wards rental in­come. Gur­gaon of­fers a good choice of lux­ury hous­ing, with a num­ber of lux­ury hous­ing projects that are ei­ther op­er­a­tional or near­ing com­ple­tion/under con­struc­tion.

Th­ese high-end lux­ury apart­ments boast of world class ameni­ties that ex­pats look for in their res­i­dences World-class ed­u­ca­tional and

Many high- end apart­ment seek­ers pre­fer tak­ing uber lux­ury homes on rent over out­right pur­chase. Gur­gaon has, in fact, emerged as a wellde­fined mar­ket for in­vestors fo­cused on l ux­ury homes, which ac­counts for the steady sup­ply of rental op­tions avail­able in the most de­sired lo­ca­tions. This, de­spite the fact that lux­ury rental val­ues in Gur­gaon also un­der­went a cor­rec­tion of around 11% year-on-year in 2012-13, there­after see­ing only a mar­ginal re­cov­ery of less than 1%.

Sup­ply trends

Cur­rently, the stock of lux­ury apart­ments in Gur­gaon health­care fa­cil­i­ties Pres­ence of high-end malls, shop­ping cen­tres and mul­ti­cui­sine restau­rants that of­fer food of all ma­jor world cuisines

Good MRTS (Rapid Metro) sys­tem which has mas­sive ex­pan­sion plans

Close prox­im­ity to air­port Rapidly grow­ing in­fra­struc­ture

Fu­ture sce­nario

In the fu­ture, Gur­gaon’s lux­ury real es­tate mar­ket is ex­pected to pick up mo­men­tum on ac­count of:

De­mand fun­da­men­tals re­main­ing strong on ac­count of healthy of­fice space ab­sorp­tion and the city’s po­si­tion as the pre­ferred res­i­den­tial des­ti­na­tion for up­per lev­els of man­age­ment across var­i­ous cor­po­ra­tions. Qual­ity of con­struc­tion, ameni­ties, spec­i­fi­ca­tions and prox­im­ity to so­cial in­fra­struc­ture will con­tinue to act as driv­ers for im­proved de­mand mo­men­tum.

Lux­ury hous­ing is based on con­cepts of niche ad­dress and lim­ited up­com­ing sup­ply, es­pe­cially on the Golf Course Road

In­ter­est rate soft­en­ing may have a pos­i­tive im­pact as end-user buy­ers, es­pe­cially salaried pro­fes­sion­als (the up­per-tier man­age­ment) are look­ing to up­grade to lux­ury ac­com­mo­da­tion by sell­ing off older in­vest­ments and bridg­ing the gap through bank loans Sec­ondary mar­ket trans­ac­tions for com­pleted and close to com­ple­tion projects is likely to in­ject mo­men­tum in the pri­mary mar­ket go­ing for­ward.

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