With neighbouring satellite cities such as Noida and Gurugram accounting for a large volume of real estate developments in the National Capital Region, we look at the prospects in Delhi and whether it still makes sense to invest in a property here
Delhi, the capital city of India, continues to attract economic wealth and migrant population and this has a positive effect on its real estate market. Santhosh Kumar, vice-chairman, ANAROCK Property Consultants, points out that in spite of the overall slowdown in the realty market, with prices correcting by up to 10 per cent in most areas, Delhi continues to be a lucrative market for real estate investments. “Being the national capital, Delhi attracts migrants from all across. In fact, as per the Economic Survey of 2017, Delhi, Noida, Greater Noida and Gurugram, saw the maximum influx of migrants between 2001 and 2011. There is a dire need to fulfil the housing needs of these migrants,” Kumar explains.
From students to business professionals, Delhi has been a preferred destination for those looking for accommodation. To cater this growing need, the government has been focusing on developing the peripheral areas of Delhi and its outskirts, such as Dwarka Expressway, Rohini, etc. Realtors in the area maintain that property rates in the NCR will remain stagnant for some time, on account of oversupply in the region.
“With some rationalisation, the sector along the Dwarka Expressway, will continue to entice mid-segment buyers. Urban housing demand is highest in Delhi-NCR across all segments, among the top eight cities. Delhi-NCR is followed by Mumbai and Bengaluru, which are expected to generate housing demand of about seven lakh and eight lakh units, respectively, over the next five years,” reckons Abhishek Singh, chief operations officer, Paarth InfraBuild.
However, the bigger question pertains to how Delhi stands, in comparison to its suburban locations like Noida and Gurugram. Kumar points out that housing supply in Delhi, over the last two years, has been fairly low, as compared to its counterparts – Gurugram and Noida. “This is essentially due to a demand-supply mismatch. There is excessive demand for affordable housing in the city, while prices in most pockets have skyrocketed. Pockets that offer affordable or mid-segment projects, have been doing relatively better than those that are expensive, such as Greater Kailash II, Panchsheel Park and South Extension II, to name a few. In fact, in 2018 as well, it will mostly be the affordable micro-markets that will drive the real estate growth in the city. Besides the affordable prices, improved metro connectivity to these areas, will also attract prospective home buyers,” he explains.
Places in Delhi, which are likely witness healthy demand
L-Zone: Strategically located between Dwarka, Gurugram and IGI airport, L-Zone is being touted as the most preferred realty hotspot in 2018. Proposed to be developed as a Smart City, the area is slated to have modern facilities, including solar power stations, rainwater harvesting and camera surveillance. Nearly 2,050 units have been launched in the L-Zone over the past two years, with maximum supply in the mid segment (Rs 40 lakhs-Rs 80 lakhs), followed by the affordable segment (less than Rs 40 lakhs). The weighted average price of properties here is Rs 3,454 per sq ft.
Uttam Nagar: Located in west Delhi, Uttam Nagar has witnessed massive real estate growth over the last few years. Affordable property prices have kept the momentum going, with capital values presently ranging between Rs 3,150 and Rs 6,050 per sq ft. The monthly rental for a 1-BHK is also as low as Rs 5,000, thereby, luring several house owners to revamp their old homes and build more floors, to earn rental returns
Rohini: Home to two metro stations, Rohini in north-west Delhi, continues to be a popular realty destination for end-users and investors alike. The locality boasts of excellent connectivity to other major areas, via the metro rail. Additionally, its proximity to the Bawana Industrial Area has triggered developments along Phases 4 and 5 of Rohini. The capital values range between Rs 7,300 and Rs 12,500 per sq ft, which is far cheaper than several other localities in the vicinity.
In summary, despite all the traffic woes, growing levels of pollution and safety concerns, people still find Delhi to be a favourable place for living, owing to the ample job opportunities that it offers.
