1 In 5 Properties in Gurgaon Laying Vacant – TOI Report

Gurgaon-Real-Estate-Market

On the one hand, thousands of people aspire to have a house of their own, while on the other hand, about one-fifth of houses in the city are lying vacant. According to Census 2011, more than 18% of houses in Gurgaon are neither occupied by owners nor by tenants, higher than the number of such houses in other parts of the NCR at about 15%.
By simple market rules, such a large number of vacant houses means oversupply. This, in turn, should translate into a fall in prices. But in the case of Gurgaon, the reality of realty is different. Here, the rich are buying several houses. And the fact that they don’t even care for rental incomes, which run into tens of thousands of rupees per month, goes to show the kind of returns they expect on such investments.
This state of ‘vacancy’, which is far higher than the state average of 8.7%, is despite the fact that about one-fifth of the city’s population doesn’t have ‘livable’ houses.Neerja Sekhar, Director of state census operations, said on Wednesday that there may be many reasons for such a situation but the number of vacant houses is increasing sharply.Independent experts, however, point out that the extent of vacancy indicates what a goldmine Gurgaon’s real estate is. The vacant stock simply shows profiteering at play in an era of exorbitant property prices.
“It shows that builders and investors in this market don’t mind holding on to the stock in the hope that prices will go up in the near future,” said Jagdeep Aatri, a property agent. The data also shows that many Gurgaonites living in other cities or working abroad prefer Gurgaon as an investment destination, which may contribute to vacant housing stock.A real estate analyst warned that many people might have invested black money into city properties.
“Such individuals don’t give their property on rent as they acquire it through black money and search for ‘suitable’ potential buyers. In many cases salaried tenants declare the details of their house owners to authorities, which may result in tax departments catching the loopholes.”If not anything else, this kind of vacancy rate creates an artificial shortage of potential leasing properties, leading to unreasonable growth in rents.In Haryana, the number of vacant houses was 2.58 lakh in 1991, 3.22 lakh in 2001 and 6.19 lakh in 2011. Around 68% of households in Haryana own a television. About one-sixth of the households own a computer, out of which just 6% have access to Internet. Around 80% households own a telephone. While one-third of them have two-wheelers, about one-tenth of the households own four-wheelers.
Source – TOI

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