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
Read more
Reply
2 Replies
Sort by :Filter by :
  • I think the property prices in the recent times have been quite exorbitant in whole Delhi

    Story published in indianrealtynew.com gives ongoing property rates in Delhi
    Delhi is the national capital of India and also one of the hottest destinations for investors. One of the most proactive reasons for investor’s priority as such is due to its good connectivity with most of the cities in India other than the best connecting city to all international airports. The property prices in Delhi in the recent times have been quite exorbitant.

    The recent sealing drive of illegal commercial properties in Delhi for instance had no effect on the property market as such. However, as traders panicked for alternate options, it did create a significant increase in property prices of commercial properties in the malls and other legally acclaimed retail outlets. Delhi’s Khan Market also been in the news recently for been the costliest retail locale in the world.

    In the residential market segment, Delhi has been known to have made the most astronomical transactions where properties sell for millions. This trend though most common in the posh localities of South Delhi is now moving towards earlier less significant places like Dwarka. The rental values of residential properties like the apartments and independent houses are quite high. The corporate leasing and diplomats in the city are in a way responsible for the trend, as they opt for the high-end properties.

    Commercial properties like the office spaces in particular are in much demand as every other company want to have their offices in the city, as Delhi has better edge over many other metros in infrastructure, availability of professional work force and connectivity.

    Read More for Property rates in Delhi
    CommentQuote
  • Places around delhi have become hot destination for the investors lately. Everybody i know either have or is planning to buy a property in kundli or in other suburb areas which have potential to give good returns in coming years.
    CommentQuote