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| Noida Property |
The real estate market all over the country has been hard hit because of delays in approvals, increasing costs of raw materials and contraction of overall demand for realty assets. However, over the past 2 years, the prices of residential real estate assets have increased and been recovered in the past 2 years. The rising residential asset prices have led to potential bubble which may cause stagnation in the past 2 quarters. From a perspective of the whole country, the newer launched in the residential sector have fallen though the year and developers are looking at disposing off existing stocks for generating cash flows.
Builders in areas of Delhi NCR are offering price cuts and discounts on the housing prices in order to bring in more buyers. There are festive season discounts on offer that buyers are completely taking up. Builders have realized that there is little sense in offering material gifts for Noida property such as gold coins, foreign trips and other aspects because buyers truly are not looking for such freebies. Some buyers are also offering flexible pay plans, where buyers simply pay 10 percent of the property’s worth to the buyer at the time of booking and the remaining 90 percent is paid up later on. Some other offer 30:30:30 payment schemes or 25:75 schemes for easing EMI payment burdens that buyers have to usually deal with.
How is the commercial realty sector doing?
The commercial office space sector in Delhi NCR healthy to moderate levels of overall absorption have been seen in the last 3 years. In the year 2013, absorption was lowest in 9 years even though there was promising lease activity. It was mainly because occupiers focused more on portfolio rationalization and cost saving mechanisms.
The ITeS or IT sector has been the best performer and contributes a large share of the leasing volumes whereas the industrial and manufacturing sector has shown commendable traction lately. Even though most office leasers or buyers prefer to set up base in Gurgaon, Noida property has also done well. Even though Gurgaon has shown a healthy balance between corporate and IT occupiers, mostly IT companies occupied Noida property.
Over a period of one to three years, market participants can expect to see betterment in absorption and demand as the economic conditions of Western Europe and US are becoming stable. This would perhaps increase outsourced tasks to India which would in turn improve the performance of office sectors. India’s domestic corporate companies are most likely going to continue their contribution towards the non-IT demand.
Given the current scenario, it is more sensible to choose leased assets from the point of view of investment. Bigger investors must consider raising domestic PE funds that are seeking investments in commercial properties. As a matter of fact, leasing activities are increasing in most of the commercial property markets of cities.
Residential Realty Development
The residential property sector of Delhi NCR was much affected by the shocks that the domestic economy underwent such as increasing input costs, higher inflation and prices that were increasing consistently. There was much speculation about the stability of the central government and buyers thought it would be best if they waited out till the elections were over to see the benefits that the central government brings in for the sector. The festival season in 2013 was a very subdued season for residential property sales in the past 5 to 6 years. Sales were quite sluggish even though festive offers, newer projects and discounts were advertised. As a matter of fact, the inventory that has piled on can take up to 2 years to be cleared.
When the stock of inventory is high compared to the numbers of months, the overall supply figures are higher only in the broader Noida property market. The monitored environment in the other sub markets have acted to upkeep the numbers at more manageable levels so that the demand and supply gaps are not too wide.
Several residential corridors do continue to be attractive in the current scenario. The valuations of secondary markets are right now trending at twenty five to thirty percent discounts compared to primary markets, which is why the secondary market is good for bargaining. Some emerging corridors in the NCR that are suitable for housing investment include.
Neemrana- Location of upcoming infrastructural and industrial developments which is driving up residential demand.NH 24- Contains a lot of pent-up demand, lower entry points, affordable housing along with potential for future appreciation.
Sohna: Next corridor for development in Gurgaon. Aside from the benefits it derives from its proximity to Gurgaon, it also benefits from KMP Expressway.
Faridabad- Given the current land demand and rising residential prices, Faridabad seems to be a gold mine. The infrastructural development of this area is most likely to fast track growth of this area.
Currently the conditions of property markets in the Delhi NCR region are not very good. However, not all is lost as those looking to buy the properties for end use are buying flats even in these market conditions. They may be deliberating a lot on the property to buy because they would be investing their life savings in it, but they are definitely purchasing properties. The ones who are sitting out are the investors who are expecting price correction to kick in so that they can go about buying properties.
A lot of NRI investors are showing interest in properties that are coming up because of the depreciated value of the rupee.
If you are thinking of buying Noida property or property in Delhi and NCR region, you could look up online to find the best properties. Apartments are available in various configurations and you can look up the specifications of the apartment. You can also find out about the ongoing property trends in the area. A lot of people participate in the real estate discussions that are posted on the website. You can also read up expert reviews and interviews to find out what is best for you.
Builders in areas of Delhi NCR are offering price cuts and discounts on the housing prices in order to bring in more buyers. There are festive season discounts on offer that buyers are completely taking up. Builders have realized that there is little sense in offering material gifts for Noida property such as gold coins, foreign trips and other aspects because buyers truly are not looking for such freebies. Some buyers are also offering flexible pay plans, where buyers simply pay 10 percent of the property’s worth to the buyer at the time of booking and the remaining 90 percent is paid up later on. Some other offer 30:30:30 payment schemes or 25:75 schemes for easing EMI payment burdens that buyers have to usually deal with.
How is the commercial realty sector doing?
The commercial office space sector in Delhi NCR healthy to moderate levels of overall absorption have been seen in the last 3 years. In the year 2013, absorption was lowest in 9 years even though there was promising lease activity. It was mainly because occupiers focused more on portfolio rationalization and cost saving mechanisms.
The ITeS or IT sector has been the best performer and contributes a large share of the leasing volumes whereas the industrial and manufacturing sector has shown commendable traction lately. Even though most office leasers or buyers prefer to set up base in Gurgaon, Noida property has also done well. Even though Gurgaon has shown a healthy balance between corporate and IT occupiers, mostly IT companies occupied Noida property.
Over a period of one to three years, market participants can expect to see betterment in absorption and demand as the economic conditions of Western Europe and US are becoming stable. This would perhaps increase outsourced tasks to India which would in turn improve the performance of office sectors. India’s domestic corporate companies are most likely going to continue their contribution towards the non-IT demand.
Given the current scenario, it is more sensible to choose leased assets from the point of view of investment. Bigger investors must consider raising domestic PE funds that are seeking investments in commercial properties. As a matter of fact, leasing activities are increasing in most of the commercial property markets of cities.
Residential Realty Development
The residential property sector of Delhi NCR was much affected by the shocks that the domestic economy underwent such as increasing input costs, higher inflation and prices that were increasing consistently. There was much speculation about the stability of the central government and buyers thought it would be best if they waited out till the elections were over to see the benefits that the central government brings in for the sector. The festival season in 2013 was a very subdued season for residential property sales in the past 5 to 6 years. Sales were quite sluggish even though festive offers, newer projects and discounts were advertised. As a matter of fact, the inventory that has piled on can take up to 2 years to be cleared.
When the stock of inventory is high compared to the numbers of months, the overall supply figures are higher only in the broader Noida property market. The monitored environment in the other sub markets have acted to upkeep the numbers at more manageable levels so that the demand and supply gaps are not too wide.
Several residential corridors do continue to be attractive in the current scenario. The valuations of secondary markets are right now trending at twenty five to thirty percent discounts compared to primary markets, which is why the secondary market is good for bargaining. Some emerging corridors in the NCR that are suitable for housing investment include.
Neemrana- Location of upcoming infrastructural and industrial developments which is driving up residential demand.NH 24- Contains a lot of pent-up demand, lower entry points, affordable housing along with potential for future appreciation.
Sohna: Next corridor for development in Gurgaon. Aside from the benefits it derives from its proximity to Gurgaon, it also benefits from KMP Expressway.
Faridabad- Given the current land demand and rising residential prices, Faridabad seems to be a gold mine. The infrastructural development of this area is most likely to fast track growth of this area.
Currently the conditions of property markets in the Delhi NCR region are not very good. However, not all is lost as those looking to buy the properties for end use are buying flats even in these market conditions. They may be deliberating a lot on the property to buy because they would be investing their life savings in it, but they are definitely purchasing properties. The ones who are sitting out are the investors who are expecting price correction to kick in so that they can go about buying properties.
A lot of NRI investors are showing interest in properties that are coming up because of the depreciated value of the rupee.
If you are thinking of buying Noida property or property in Delhi and NCR region, you could look up online to find the best properties. Apartments are available in various configurations and you can look up the specifications of the apartment. You can also find out about the ongoing property trends in the area. A lot of people participate in the real estate discussions that are posted on the website. You can also read up expert reviews and interviews to find out what is best for you.
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