Real estate market yet to recover

Property prices in the National Capital Region have failed to pick up once again. A recent report has revealed that while rental prices showed a ‘marginal dip’ in the city, property prices ‘stagnated’ for the July-September period.

The slump in the real estate market has also led to a 30 to 35 per cent decline in new launches in just over six months. An Insite report released by 99acres.com states that over 1.7 lakh units in Delhi-NCR remain unsold. In that, Noida has witnessed the maximum pile-up of about one lakh flats, while Gurgaon witnessed 26,000 units remaining in the developers’ kitty.

Elaborating on the report, Narasimha Jayakumar, Chief Business Officer ( 99acres.com ) said: “The residential real estate segment of the NCR continued to be in a state of inertia from July to September 2015. The slew of infrastructure developments and government reforms failed to bolster spirits, thus, leading to an increased probability of price slump in the forthcoming quarters.

Rupee devaluation and numerous freebies by developers attracted investment from Non-Resident Indians (NRIs), especially in the luxury and ultra-luxury segments.”

In Delhi, Chattarpur and Kundli emerged as the frontrunner in property prices, having recorded a growth of nine per cent each. These were followed by Kalkaji, which saw prices strengthening by eight per cent in the quarter ending September. The growth in South Delhi’s Chattarpur can be attributed to it being an unauthorised locality, where property prices are comparatively low. Kalkaji, too, owes its price appreciation to the presence of MIG housing.

“A prime factor that adversely impacted Delhi’s realty landscape is the spike in circle rates, which translated into a 20 per cent rise in property price tags,” said Mr Jayakumar.

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