It May Be Good Time To Buy In NCR, Invest In Kolkata
If you had been waiting for a drop in prices before buying a home in the National Capital Region (NCR), especially Gurgaon or Noida, this might be the right time for you to go for a purchase. The time might also be appropriate if you had been sitting on the fence amid reports of various project delays.
According to PropTiger DataLabs' Monthly Realty Watch report for North & East India, April 2016, new launches in the two regions in March saw a combined decline of 79 per cent from the previous month and of 80 per cent from the same month in 2015.
“Subdued demand, stagnant prices and pressure from an unsold inventory across cities affected the liquidity scenario and resulted in a decline in new launches (in the region),” the report says.
Gurgaon, in fact, did not see any new launches in the month, while Noida saw some upcoming projects starting construction. Migsun and VPA Infratech were among the developers that launched new projects in Noida. Property prices declined in both cities, by up to four per cent year-on-year in some localities.
While there was little real estate activity in Gurgaon, Haryana as a state attracted much investor interest in March, with real estate players like DLF, Jindal Realty, SuperTech, IREO, M3M, Embassy Industrial Park and Indiabulls committing themselves to investing as much as Rs 1,23,700 crore, during the Happening Haryana' summit. Besides, the Abu Dhabi Investment Authority, private equity fund IREO and developer Hines backed Gurgaon-based developer Conscient Infrastructure to jointly develop a 10-acre residential project in the city. These indicate underlying confidence in the city's real estate market and, therefore, a brighter outlook for real estate in the Millennium City.
The report also highlights that the upcoming single-window clearance system in Delhi – which will allow developers to get project approvals within 30 days of filing applications – may augur well for the real estate sector in the national capital region.
East shining
From an investor's point of view, the major real estate market in the east, Kolkata, has shown improvement in terms of price appreciation. Residential properties in the city, across localities, in March saw a price appreciation of one-four per cent over a year earlier. Despite muted activity, Kolkata also witnessed some new launches during the month. Among the developers who launched their projects in the city were Ambuja Neotia (Mukundapur), Rechi Construction (Rajarhat-New Town) and Diamond Developers (Alipore).
The report highlights that three information technology parks, with the capacity to incorporate as many as 25 companies, are set to become operational in the city. This would boost the commercial real estate market in Kolkata. For those looking to make money by investing in the commercial segment, this could be the right time.
Another recent PropTiger DataLabs report – Realty Decoded Q4, FY16, released earlier this month – had also indicated that the affordable housing segment in Kolkata could witness high growth in the times to come.
To download PropTiger DataLabs' monthly report, Realty Watch, April 2016 -- North & East, click here.
Noida Gurgaon Delhi Kolkata Real Estate