Prices in the national capital are once again going through the roof prompting the middle-class people to explore options in the NCR
It is generally believed that real estate world sees a lot of positive energy and activity every year, close to festive seasons. That is a time, even when the market is not flooded, a lot of serious prospective buyers throng developers for houses. These are the people who wait for this supposedly auspicious time to seal a deal.
Well, the festive season is once again upon us but there seems to be no sign of any positive mood in the market. The mood is rather dull and lukewarm. Buyers are very much there but they are waiting for a time when prices of houses of their choice come down to reasonable levels. The current situation is very abnormal and this does not seem to be an opportune time to clinch a deal. The secondary realty market in the national capital is touching a new low as the rates of flats have increased without any rhyme or reason – up by 30-35% during the last 15-18 months. That has greatly dampened the spirit with serious buyers postponing their plans to buy a flat this festive season.
According to Samir Jasuja, MD of PropEquity, “If the location is good, then increase in rates is even steeper. I am sure that unless prices do not fall to reasonable levels, the market would not see a lot of positive energy.” Sources say that due to the astronomical rates of properties, serious buyers are abandoning Delhi for the NCR. They are also playing a waiting game.
If you talk about prominent areas of West and North Delhi like Rohini, Paschim Vihar and Vikas Puri, the increase in prices were up to 25%. A realty expert said that market goes up once some property sold at a good price. After that, the rate of that particular deal becomes the benchmark in that area. People forget that there are many factors that determine the price of a particular property. Hence, what is true for one property cannot be true for another one in the area. According to a Paschim Vihar-based realty consultant, Suresh Bhalla, “There is hardly any deal which is reaching its logical conclusion as far as DDA or cooperative group housing flats are concerned. The current going rate for a MIG flat in Paschim Vihar, Janak Puri and Vikas Puri is around Rs 70 lakh. The rate for an HIG flat is even higher. This is too much. With such rates, it is not easy to find buyers.”
And, if you move on East Delhi, the rates of both DDA and society flats are again crossing the threshold of the budgets of the middle-class segment. You can feel lucky if you manage to buy an MIG flat at less than Rs 65 lakh. There are some societies where flats even cost more than Rs 1 crore. Given the fact that the original cost of such flats can not be more than Rs 18-20 lakh, the prices seem to have run amok.
However, amidst this not too
happy a scenario, there is a gain for places like Ghaziabad, Noida, Faridabd and Gurgaon as many people are now looking for possible options there. J K Jain, MD of DesignArch e-homes, says that one has to be very practical when it comes to finalizing a property-related deal. “Rather than waiting for a time when rates fall, one should buy the property at a second best possible place at the available rates.” Echoing this, Sunil Jindal, CEO of SVP Group, is of the opinion that the NCR is thriving because the capital is now more or less out of bounds for working-class and middle-class people. It is now no secret that this is a reason for a large number of buyers flocking to places like Noida, Ghaziabad, Gurgaon, Faridabad, among others, looking for flats that match their budget.
Dejected as he failed to match the demand of a flat owner
in Mayur Vihar, which he took a fancy to, a senior TV journalist Niren Majumdar said that he had a budget close to Rs 60 lakh – but even then he could not buy a flat in Delhi. “They (flat owners) are asking for the moon from people who look for flats in the capital. I do not think it would be possible for working-class people to buy house here.”
So, are there no buyers for flats and floors in the national capital? This claim or perception is hotly contested by San jay Khanna, director of Kailashnath Projects Private Limited, who says: “This is not true at all as in Delhi floors worth Rs 4-5 crore are finding buyers. It is not at all true that buyers have shelved their plans owing to high rates of houses.”
Courtesy Times Property dtd:-16/10/2010

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