Planning to buy a house in Delhi-NCR? Even Rs 5 crore budget may not guarantee home in brand-new project in prime locality

May15,2024



Thinking of buying a house in Delhi-NCR? In the red-hot real estate market Delhi-NCRA budget of Rs 5 crore may not be enough to secure a home in a brand new project by a reputed developer in a prime location. With homes priced at Rs 6 crore and above selling out within hours of launch, developers are reluctant to launch smaller sized apartments, leaving end users waiting for the current market boom to stabilise.
According to an ET report, this trend is a matter of concern for industry experts as it is giving rise to speculative buying, which could potentially lead to a bubble in the property market.
In the last 18 months, prices have almost doubled in most micro-markets of NCR, with developers avoiding offering smaller sized apartments. These trends have reduced the prospects of middle-class home buyers buying property in the current scenario, said an industry expert. While prices per square foot may remain unchanged, developers may need to reduce unit sizes to provide options within less than Rs 5. crore range, the expert was quoted as saying.
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DLF has sold apartments worth Rs 20,000 crore in three projects in the last 18 months, all of which sold out within 72 hours of launch. The company says most of its buyers are non-resident Indians and end users who hold inventory for long periods, unlike speculative buyers.
Godrej Properties earned over Rs 2,000 crore during launch-day sales of four projects, including three in NCR. Other developers like Max Estates and Signature Global also reported selling out their inventory within an hour of launch.
Anurag Mathur, CEO of Savills India, believes that prices will now stabilize and will not increase for the next six to eight years. He said the market was down for a long time and any sudden bounce was expected, but the way new projects are coming up in the same price bracket is somewhat worrying. Buyers currently have to hold their inventory for six to eight years, when another upcycle is expected.
“The lifecycle of an upscale project is more than five years and the developer must sell some part of it every year,” said a developer. “The buyer is also confident of price appreciation in that case and the market is also able to absorb that inventory. ” Coming in.”
In recent years, Gurugram has emerged as a major luxury market in the region, with demand for gated communities accelerating during the pandemic, enhancing the city's reputation as a luxury destination.
The sharp recovery in luxury residential real estate has led developers to add nearly 45% of the total luxury stock in the last 5 years alone.



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