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Noida Property News: Correction, stagnation and boom. Over
the last one year, residential property rates have seen it all in
different areas of the National Capital Region(NCR). While price in
Gurgaon-Manesar area saw a 8-10% fall, in Rohini and Kundli there was a
significant 30-35% jump. Prices in major upcoming locations in and around
Delhi, such as Dwarka, Faridabad and Noid, continued to grow at a steady
pace of about 10-15%. |
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At present, property price in the Gurgaon area varies
between Rs 3,200-3,300 per sq ft against Rs 3,500-3,600 around beginning
of 2006. Between the years 2002 and 2005, price in this area had seen a
10-fold jump.
The Dwarka area zoomed on the realty radar towards middle 2005, when
prices saw a sudden 40-50% jump, which was then attributed to completion
of the flyover project and metro connectivity. Since then, price in the
area has been growing steadily, and is close to Rs 3,500 per sq ft now.
Prices in Noida in sectors bordering Delhi are about Rs 4,100 per sq ft
against Rs 3,700 almost an year back. Similarly, in Delhi-bordering areas
of Faridabad, such as Surajkund, property price has gone up to about Rs
2,500 per sq feet from Rs 1,800-1,900 in the last one year.
Present prices in the Kundli area, on the northern borders of Delhi, which
was just about Rs 1,200-1,300 per sq feet in January 2006, has grown by
40-50% and now varies between Rs 1,900-2,100 per sq ft.
Experts say that genuine property buyers are mainly being guided by
proximity to Delhi. Says TDI MD Kamal Taneja, “For a property buyer,
distance from the central business district (CBD) and connectivity are the
primary concerns. Of late, there have been many joint initiatives by both
Delhi and Haryana governments to address infrastructure problems in areas
close to Delhi on the northern borders. This has attracted a lot of
investor interest in the area over the last 12-18 months.”
TrammellCrowMeghraj COO Santhosh Kumar notes that over the last one year,
increased activity in the secondary market has put pressure on developers
to rein in rampant price increases. “Many investors in the property market
are in the process of unlocking their value. This has lead to secondary
market rates in certain pockets in Gurgaon and Noida that are around
10-12% less than what developers want for new projects,” he said.
Also over the last one year developers have focused on bringing to the
market top-end projects that range anywhere between Rs 70 lakh and Rs 1.25
crore. Property dealers agreed that in the supply of Rs 35 lakh to Rs 70
lakh projects have been very limited.
According to optimist experts, the slow-down in the Gurgaon area is also
only a temporary phenomenon. Says National Real Estate Development Council
(Naredco) deputy director Summit Jha: “This time, the real estate boom in
the NCR is based on solid foundations. There may be minor corrections but
by and large, there would not be a fall-out. There is a genuine demand for
housing and once ongoing road and flyover projects in Gurgaon head towards
completion, prices will bounce back.”
by http://economictimes.indiatimes.com
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