NCR Realty Trend 2010: Property Price Revival
Realty prices back on track in Delhi
India Infoline News Service / 16:59 , Dec 15, 2010
The trends clearly prove that 2010 was a year of revival and the overall sentiment of the sector has improved dramatically since the downturn and property prices are back to the 2007 levels.
A study by 99acres.com, India’s no 1 real estate portal revealed that the property price trends for the Delhi and NCR region have seen an escalation if we compare per square feet prices(PSF) of Q4-10 over Q1-10. The trends clearly prove that 2010 was a year of revival and the overall sentiment of the sector has improved dramatically since the downturn and property prices are back to the 2007 levels.
Commenting on the same Vineet Singh, Business Head, 99acres.com said “Over the last 18 months, Delhi-NCR has become a unique market. On one hand there is Noida which has emerged as the end-user hub as there is lot of supply resulting in minimal price increase of 10-20% over a 12 month period. On the other side is Gugaon which is an investor’s paradise with rates increasing by over 35-40% over the last year.
This unique balance continues to drive the Delhi NCR market to new highs. In the city of Delhi we’ve seen continued price increase (as expected due to hardly any new inventory being available) across the city in a range of 20-50%. I remain very bullish on the DelhiNCR marlet with Noida being my top end-user pick and Gurgaon the top investor pick across India”.
A look at the property prices of localities of Delhi show that Vasant Kunj and Uttam Nagar has seen a 16% and 24% appreciation in prices respectively if we compare Q4-10 prices over Q1-10. The prevailing rates of these localities are at Rs. 11000psf (per square feet) for Vasant Kunj and Rs. 3100psf for Uttamnagar. With the introduction of metro rail service, Dwarka has gained a lot of popularity and property prices of almost all localities in Dwarka have seen an up swing. Sector 11 saw prices rise by 35% and Sector 10 saw a 23% increase in property prices.
The Noida and Ghaziabad region has also emerged as one of most popular destinations for housing because it offers a perfect blend of industrialization and habitation. With improved road and metro connectivity the commuting time to Delhi has also reduced considerably. Sector 93 and Sector 50 of Noida saw prices moving up by 14% and 6% in Q4-10 over Q1-10. The property prices in these localities are at Rs. 4800psf and Rs. 5300psf in Q1-10. Ghaziabad has also seen steadily upward moving property rates with Vaishali and Indrapuram witnessing a 9% upward movement in prices respectively in Q4-10 over Q1-10.
Localities of Gurgaon also witnessed an upward trend in property prices. Properties located on the Golf Course Road and Sector 56 in Gurgaon shows the highest appreciation with prices moving up by 38% and 39% respectively in Q4-10 over Q1-10. Localities like Nirvana Country and Sushant Lok witnessed 34% increase in prices respectively in Q4-10 over Q1-10 with property prices floating around Rs. 5500psf and Rs. 6600psf in Q4-10.
Source: http://www.indiainfoline.com/Markets/News/Realty-prices-back-on-track-in-Delhi/5022122182