Realty Prices Up In Delhi, Buyers Undeterred

REALTY PRICES UP IN DELHI, BUYERS UNDETERRED

There was hardly any shock among various stakeholders of the realty sector in East Delhi when a 3BHK flat in a not-veryprestigious-cooperative group housing society sold for Rs 1.40 crore last month. The first floor flat was 1,250 sq feet.
This lack of emotion is perhaps owing to the fact that it is not just East Delhi, but the entire capital, where realty prices are on the rise.
Samir Jasuja, the managing director of PropEquity, says: “If the location is good, the increase in rates is even more pronounced. I believe that unless prices settle at reasonable levels, the market would not see buoyancy.”
However, there is no dearth of serious buyers who are ready to pay even up to Rs 60 lakh for a 2BHK flat in a good location. Even this amount is proving inadequate while purchasing a house in places like Mayur Vihar, IP Extension, Vikas Puri, and Janak Puri.
“Despite the fact that rates of properties are going up very rapidly, there are buyers in the market. There is hectic activity in the secondary market. People are asking for the moon from prospective customers,” Rajeev Garg, a Mayur Vihar-based realty consultant, says. “The other side of the story is that there are many who were looking for flats, now shifting attention to Noida, Ghaziabad and Gurgaon,” he says.
A Paschim Vihar-based realty consultant is of the view that only those buying properties in the capital look for bigger accommodation. They first sell their house in order to buy a bigger one, he says.
Rohit Jain (name changed), too, recently did the same thing. Jain sold his third floor 2BHK flat to buy a 3BHK flat in Mayur Vihar. Of course, he put additional money to clinch the deal. There are several other people like Rohit Jain.
“While buyers are very much there, the current situation is absolutely crazy. This is not the time to clinch a deal. The secondary realty market of the capital is touching a new high as the rates of flats have increased without any rhyme or reason – it went up by 18-20% in the last 24 months,” Devinder Gupta of DGS Realtors says.
And if you visit important areas of West and North Delhi like Rohini, Paschim Vihar and Vikas Puri, rates are up by up to 25%. A realty expert says that market goes up once a property is sold at a hefty price. After that, the rate of that particular deal becomes the benchmark in that area. However, 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 property in that area.
Manish Malhotra, a Janak Puri-based realty consultant, says: “There is hardly any deal that is reaching to its logical conclusion as far as DDA or cooperative group-housing flats are concerned. The current going rates for an MIG flat in Paschim Vihar, Janak Puri and Vikas Puri is around Rs 80 lakh. The rates for HIG flats are even higher. That is too much. With these rates, it is not easy to find buyers.” Talk about Yamuna paar and the rates of DDA and society flats once again stagger you. You can count yourself lucky you manage to buy a 2BHK DDA flat for less than Rs 70 lakh. There are some societies where flats cost more than Rs 2 crore. Given that the original cost of such flats was around Rs 18-20 lakh, the rates are absolutely crazy to say the least.
Vijay Jindal, the chairman and managing director of SVP Group, says: “One has to be very practical when it comes to finalizing a property deal. Rather than waiting for a time when rates would fall, one should buy property at a second-best possible place. The NCR cities are thriving because Delhi is now more or less out of the reach of the working-class and the middleclass people. It is no secret – that is why a large number of buyers are looking for flats that match their budgets in places like Noida, Ghaziabad, Gurgaon, Faridabad, etc.”
Gaurav Mittal, the managing director of CHD Developers, says: “I feel that rather than waiting for prices to fall, one should book a flat in any town of the NCR. Now that the Metro rail is also spreading its network, it is a good idea to book flats in any part of the NCR. Thousand of happy families live in the other NCR cities, who too first tried their luck in Delhi. When they failed, they moved on.”
Is the high cost of flats and floors proving to be a dampener for buyers in the capital? This very claim or perception is hotly contested by Sanjay Khanna, director of Kailash Nath Projects Private Ltd. He says: “This is not true, as in Delhi, units with four, even five floors, are finding buyers. There are buyers for luxury floors and flats. That segment is thriving.”
A realty consultant says that even dingy flats in places like Laxmi Nagar, Ganesh Nagar, and Shakarpur are finding buyers in hordes. “But you never know what would happen to them – every moment is touch and go,” he says, recalling an incident of a building collapse at Laxmi Nagar, which killed 70 people last year.

0 Comments

Leave a reply

Your email address will not be published. Required fields are marked *

*

Verification Code * Time limit is exhausted. Please reload CAPTCHA.

CONTACT US

We're not around right now. But you can send us an email and we'll get back to you, asap.

Sending
or

Log in with your credentials

Forgot your details?