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- Originally Posted by Raj AryanAFTER a two-year boom, the Capital’s real estate market has now gone into a slump, due largely to the high interest rate of 15 per cent, as opposed to 8.5 per cent even a year ago.
The result: like neighbouring Gurgaon, Noida and Ghaziabad, Delhi’s property market has seen a 20-per cent decline in the past five months.
“The problem is that Delhi over the past few years has had no real buyers — individual property owners who buy plots for residential purposes,” says Amit Sirohi of Eros Group. “Most residential plots are now bought as investment, to be sold (later) for a profit.”
But investors, he says, now are not willing to buy residential properties at such high interest rates simply for investment, resulting in the slump.”
Sirohi says another factor that has affected the market in Delhi, and has also had a spillover effect in the rest of NCR, is Delhi’s failure to win the bid for 2014 Asian Games. “Such events result in infrastructure boom, and subsequently a real estate boom,” Sirohi says.
Interestingly, actual property prices in Delhi areas — like Gulmohar Park or Paschim Vihar for instance — have not decreased, but realtors say there are no buyers in the market right now.
S K Mittal, president of Association of Certified Realtors of India, says the Supreme Court staying construction of additional floor in residential plots as per Masterplan 2021 has also affected the market.
Did it effected anything?
I think yes it did, india's real estate market is getting stronger.CommentQuote0Flag
- Useful Information... The time of Investment in RE is some time away...... Only genuine buyers needs to go for the purchase.CommentQuote0Flag