DELHI REAL ESTATE – 2014
Areas of South Delhi like Vasant Vihar, Defence Colony and Central Delhi have always been on the wish-list of almost all investors. Even as the overall real estate market in India cools, the demand for super-luxury residential properties in Premium South Delhi Colonies, is showing no signs of a let-up, with the super-rich still opening their wallets for talk-of-the-town homes.
In Delhi, the preference of HNIs when it comes to established and high-value locations is more or less inflexible. South Delhi is still the micro-market of choice for ultra-rich clients with budgets ranging from Rs. 10-300 crore. Golf Links in Delhi is a more vibrant market in terms of demand when compared to even to Lutyens Zone. Shanti Niketan and Vasant Vihar are two other key HNI destinations where demand exceeds supply. Most other cities have similar pockets, but also show evidence of a certain degree of demand diversion to newer locations and concepts, which is not the case in Delhi.
What Ultra-HNIs Look For
Ultra-rich buyers look at following parameters when it comes to buying a luxury residence:
1. The Profile Of The Residents
It really matters whether or not you share the neighbourhood with the tycoons, celebrities and prominent CEOs of the city, as this makes a definite status statement and is also good for business. While ultra HNIs do gravitate to creamy layer environments for reasons of prestige, it is also true that many business deals are concluded at these residential locations during social interactions over weekends and holidays. In Delhi areas like Amrita Shergill Marg and Golf Links come readily to mind for these reasons.
2. Low Density
The rich and famous do not like to live in the crowded areas of a city, but prefer locations with lower population densities offer. For this reason, locations like Jor Bagh and Westend in Delhi are locations where the rich pay very high premiums.
3. View And Privacy
Area surrounded by parks or a view of a golf course and a high level of privacy matter a lot when it comes to defining luxury for India’s ultra-rich.
4. Ready Access To The City’s Centre
South Delhi is very well connected to Airport, Connaught Place, High-Streets and Five-Star Hotels in the capital.
5. Overall Luxury Experience
The definition of luxury has been extensively abused in Indian real estate, and is being closely scrutinized by ultra-rich buyers when it comes to evaluating offerings. Luxury goes beyond club houses and the quality of fittings used in a project’s apartments. Multiple aspects of a project are evaluated to discern if the ‘luxury’ tag indeed applies.
The property prices have not come down, but there is stagnation in the market. The main reason is the economic slowdown and overall uncertainty in the market. With increase in the Circle Rates, there will be cut down in black money components in property transactions. This increase will only result in higher revenues for the goverment in form of stamp duties and taxes but is unlikely to have significant impact on prevailing property prices.
Buyers market continues in Delhi.
NCR (National Capital Region) REAL ESTATE – 2014
Delhi shares proximity with Gurgaon, Noida, Ghaziabad and Faridabad forming the National Capital Region (NCR) which had emerged as one of the most favored market of real estate investors. While the mid-end of the property market has more end-users buying apartments, the top-end of the market has been dominated by investors who were attracted to the segment by the lure of superior returns.
In Gurgaon, for instance, the price in DLF’s Magnolias project has jumped up from 9,000 per sq ft in 2009 to 25,000 per sq ft today. M3M’s Golf Estate has gone up from 6,000 per sq ft to 12,000 per sq ft. Tata Housing’s Raisina Residency has seen prices move up from 4,000 per sq ft in 2008 to over 10,000 per sq ft today. But over the last 12 months, prices in all the three properties have risen only 9-10 per cent. Now investors are no longer lining up to buy these projects like before.
The Gurgaon residential market has currently stabilized, and there is no scope for any significant appreciation in the near term. Gurgaon has transformed to being an end-user driven market from an investor-driven market and short-term speculators on the lookout for immediate capital gains have ceased to exist in this market.
THINKING OF BUYING OR SELLING A HOME IN DELHI OR GURGAON ?
If you’re interested in learning more about the Delhi NCR real estate market, considering selling your home in Delhi or GURGAON, or thinking about moving to these places, please drop us a line and we’ll love to connect with you.
