Delhi- NCR sees whopping 36% price rise in residentials in 2011

Update 30 Dec 10

Residential prices rise 36% in Delhi-NCR in 2010

NEW DELHI: After more than a year of lull, the residential segment in Delhi- NCR and Mumbai have witnessed price rise by up to 36 per cent during 2010 on the back of good demand.

According to realty consultant Cushman & Wakefield (C&W), prices in the high-end segment in Gurgaon rose by 36 per cent, while that of mid-segment in central Mumbai saw rates firming up by 15 per cent during the year.

"The residential segment in select micro markets of NCR witnessed unprecedented growth during the year with significant increase in rental and capital values… This can be attributed to the rising interest from the end users and economic revival at large," C&W India Director (Residential Services) Shveta Jain said in a statement.

The rentals scenario in Delhi-NCR have also witnessed moderate growth during the year by up to 20 per cent. The south central region of the city registered highest appreciation.

The consultant said that the Mumbai market's prices increased due to "large-end users and investor demand for mid range housing segment".

The report, however, said the prices in these markets are likely to see some corrections due to huge supplies coming up in the next year.

"Capital values in Gurgaon are likely to see minor correction in the latter part of 2011 as it has already reached high price points and will be witnessing ample supply entering the market," it added.

In Mumbai too, capital values are expected to correct in most micro markets owing to large upcoming supply.

"Rental values are expected to be under downward pressure owing to upcoming supply in most markets too," the report pointed out.