Be it the hit by slowdown or price corrections by 10% in real estate market, investors and end-users still hook up to Delhi NCR as their favourite.
Real Estate market got a total slowdown in the business but this hasn’t deterred the end-users of dreaming their accommodation in Delhi NCR.
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Capital City & Real Estate Market
Delhi NCR is the capital city of India and thus it can be one of the many reasons that migrants from all across the nation get attracted to this city. As per Economic Survey in 2017, the maximum influx in the number of migrants was observed by Delhi NCR, Gurugram and Greater Noida in between the years 2001 and 2011. Thus the dire need of house fulfilment can be somewhat understood with this data.
Skyrocketed Property Prices
As per ANAROCK data, Gurugram and Greater Noida have fairly overstepped the accomplishments of Delhi NCR in-housefulfilment. The lower rates of house supply in Delhi NCR can be explained with the mismatched balance in demand &supply. The prices in the real estate market have rocketed high with increasing demand, but the fulfilment rates have gone down the road.
South Extension II, Greater Kailash II and Panchsheel Park are few of the affordable pockets offering mid-segment projects. They are performing much better than the expensive pockets of the city. In 2018 too, these micro-markets with affordable markets are in the driver seat when it comes to performing well I the real estate market and its growth the capital city.
Another important reason that migrants are getting more and more attracted and banking their investment in these affordable pockets of the city is due to the growing metro connectivity. Prospective home buyers are greatly looking forward to these hotspots.
Regaining Lost Momentum
Delhi NCR witnessed a great setback in the past year in the real estate market. But with the revival in the economy, the lost momentum is all ready to be gained again. Government is now working even harder, using every stone to build and restore the infrastructure build back on its growth track. The infrastructure sector is now more capable than before in delivering to citizens.
PPP- Private Public Partnership model is now being supported by the government, more than before, resulting in a significant boost in infrastructural undertakings in the capital city. City’s environs are all set to revamp with contribution from public & private sectors in this snowballing growth strategy.
Economic Sentiment of the Capital City
Subdued and restrained economic sentiments along with the city’s attractive business atmosphere and the rising inflation rate in the market can be evaluated and gauged with commercial realty health of the city. This is evident with some stats like how Connaught Place has emerged to be the fourth costliest business or commercial office market across the globe.
5.5 msf (million square feet) was the total Grade A supply that was recorded last year. Average rental values have jumped up by 8-10 percent despite the vacancy levels going higher by 24.3 per cent. Due to increased vacancy, the renal values are expected to remain stable this year.
Elements in The Growth
Residential activity has increased multiple folds along the line the growth corridors. Few of the up comings in them are along Noida and Gurugram, like Noida Expressway, Yamuna Expressway or Dwarka Expressway. They all have recorded tremendous activity with potential buyers and will be seen driving the residential market growth in upcoming years.
Future of Delhi NCR in Real Estate Market
Now with all the facts and stats presented, one can tell that the future of Real Estate in Delhi NCR looks to be promising. The rental values have gone more stable and property markets like Gurgaon, South-Central Delhi and South-East Delhi have all perceived capital appreciation of around 14-29 per cent this year.
Last year a cautious buyer sentiment was felt in Delhi but this year, with good activity been recorded in the suburban market, the situation is expected to get a lot better. Recent budget cam with more focus on real estate and affordable housing and a boost in the residential market can be expected after this.
Coming to the future stats of real estate and affordable housing in Delhi NCR, the DDA or Delhi Development Authority has been given the responsibility of more than 65,000 affordable house building, all that in the next four years.
Many factors are fuelling the boost in the real estate market in the nation’s capital. Some of them are the rapid metro projects, expansion of roads, affordable living focused budget, the dew of policies like GST and RERA (Real Estate, Regulation & Development Act) and many others.
Micro-markets are seeing appreciation from prospective home-buyers more than before and with rental values going stable, more migrants are expected to be coming to the city. Thus, it can be conclusively said that Real Estate Market in Delhi NCR looks to be promising and expected to boost up in the coming few years.