Delhi property market in 2013
remained sluggish. In fact, the absorption of residential properties was an
all-time low this year, lowest in past 9 years. High inflationary rates,
dwindled value of rupee against dollar, and economic slowdown were the major dampening
factors for the dire state of affairs. The input costs reached zenith, with
property buyers remaining more keen on saving their hard-earned money rather
than investing on real estate. In terms of performance levels, the Delhi real
estate did not fare that well as did Gurgaon and Noida.
While real estate Delhi was
outperformed by other NCR cities, its secondary market gave a satisfactory
performance. In most of these secondary markets, the properties trended on
25-30% discounts, thus bringing more alacrity among buyers. These relatively
affordable markets also were the areas that let the buyers bargain on rates.
Localities like Uttam Nagar, Khanpur, Neb Sarai, and Chattarpur emerged as
sustainable options. Asset appreciation was the another factor that acted as
dampener for buyers' spirits. The city witnessed property bubble which drove
the inventory seekers from market. The last 2 quarters of 2013 were
particularly stagnant and no appreciable buyer activity could be seen.
A major development that was like
a whiff of fresh air for Delhi real estate is the new Land pool Policy. Under
this, about 7000 acres of developmental land would be acquired by the land
owners, and used for residential and commercial purposes. The areas that will
see pooling of land and subsequent transformation of villages into
developmental areas would be Najafgarh, Ghitorni, Chhatarpur, Rohini, Mehrauli,
Khanpur, and others. While about 95 villages would get transformed into
developmental areas, the remaining 88 would be converted into urban areas. The
present occupiers of the land in the earmarked areas would be returned a part
of developed land in lieu of their undeveloped spaces. In light of this policy,
the rates in expensive localities like Vasant Kunj, and Greater Kailash are
expected to see a fall.
A number of affordable corridors
have also emerged in areas lying in proximity to Delhi. Real estate Delhi, for
example, is going to get boost by developments in and around Neemrana, Yamuna
Expressway, Faridabad, Palwal, and Sohna. Unlike the sky-high rates across
several parts of Delhi, the property prices over these new growth corridors are
relatively affordable. With good infrastructural growth an essential part of
these markets, the development prospects are high. But it would take a few
years before these sustainable areas witness any full-fledged development.