Indian Real Estate Forum - www.indianrealestateforum.com - View Single Post

rakesh · 18-12-06

A buyer's guide to real estate in Delhi

Have money and want to buy a house? Good sense, if you are in Delhi. "Land has become scarce in Delhi city, with very few new developments coming up. Most of the new supply in Delhi is coming up in townships such as Dwarka. So, if you are getting a premium property which is priced anywhere between Rs 4,000 and Rs 6,000 a sq ft in Delhi, it is considered reasonable, compared to other cities in Asia Pacific," says Nitin Gupta, associate director, PriceawaterhouseCoopers.

"These properties can still give a return of 20 per cent over the next three years," adds Gupta. "Although Delhi prices are at an all-time high, they are not going to come down in the near future. In fact, whatever correction has to happen, has already happened.

Compared with the last couple of years when prices increased 40-50 per cent, this year, the rise has been a more modest 15-20 per cent. We expect this trend to continue, especially in the Rs 60 lakh to Rs 1 crore segment," says Jayant Verma, executive director - north, Knight Frank, a real estate consulting firm.

He also predicts a 10-15 per cent correction in the prices of properties priced upwards of Rs 1 crore, in the medium term. "There is too much supply coming in at this end with developers such as DLF, Parsvanath and Unitech announcing new developments. But we are doubtful about whether the market can absorb so many of these properties. By the time these properties are actually ready, we expect a slump in demand," says Verma.

And who should buy? Buy only if you are a long-term investor and are not looking at short-term gains, says Gupta.

"Only then does it make sense to put in Rs 4000-6000 for a sq ft. If you are looking at short-term gains, then investing in a property in Delhi may not be the best use for your money," says he.

--Business-standard.com

18-12-06	#1
rakesh New Member Join Date: Oct 2006 Posts: 30 Thanks: 0 Thanked 0 Times in 0 Posts	A buyer's guide to real estate in Delhi A buyer's guide to real estate in Delhi Have money and want to buy a house? Good sense, if you are in Delhi. "Land has become scarce in Delhi city, with very few new developments coming up. Most of the new supply in Delhi is coming up in townships such as Dwarka. So, if you are getting a premium property which is priced anywhere between Rs 4,000 and Rs 6,000 a sq ft in Delhi, it is considered reasonable, compared to other cities in Asia Pacific," says Nitin Gupta, associate director, PriceawaterhouseCoopers. "These properties can still give a return of 20 per cent over the next three years," adds Gupta. "Although Delhi prices are at an all-time high, they are not going to come down in the near future. In fact, whatever correction has to happen, has already happened. Compared with the last couple of years when prices increased 40-50 per cent, this year, the rise has been a more modest 15-20 per cent. We expect this trend to continue, especially in the Rs 60 lakh to Rs 1 crore segment," says Jayant Verma, executive director - north, Knight Frank, a real estate consulting firm. He also predicts a 10-15 per cent correction in the prices of properties priced upwards of Rs 1 crore, in the medium term. "There is too much supply coming in at this end with developers such as DLF, Parsvanath and Unitech announcing new developments. But we are doubtful about whether the market can absorb so many of these properties. By the time these properties are actually ready, we expect a slump in demand," says Verma. And who should buy? Buy only if you are a long-term investor and are not looking at short-term gains, says Gupta. "Only then does it make sense to put in Rs 4000-6000 for a sq ft. If you are looking at short-term gains, then investing in a property in Delhi may not be the best use for your money," says he. --Business-standard.com