I happened to read an excellent Article about
Delhi NCR market being Driven by nexus of Builders - Brokers and Investors which is like riding a Tiger and is bound to correct very soon.
At present, projects in futuristic locations in Gurgaon, such as Dwarka Expressway and New Gurgaon, are being launched at INR5,000-6,500 psf. However, these areas, we think, will only be liveable in the
next 3 to 4 years as they currently lack basic infrastructure and amenities. Builders will find it difficult to justify the higher prices from the existing levels given that completed properties in more mature micro markets, such as Golf Course Extension road are available at INR7,500- INR9,000 psf.
Who are the Buyers ?Investors operating in the NCR market are either based out of NCR or are NRIs. The market is not experiencing any significant interest from investors outside of NCR. Investors who are cashing out of their high valued Delhi real estate holdings are picking up multiple units in the Gurgaon market.
Brokers remain a major channel through which developers are achieving majority of their sales. In fact, this ratio is as high as 95 percent in NCR markets vs. 30-50 percent in other markets
A significant amount of the bought-out units are being held by investors. We believe that the large supply of already-sold units in Noida, Greater Noida and Noida extension, once completed, will take some time to get absorbed.
Popularity of the Noida market has taken a hit, after the issue of Noida extension land cropped up. This has benefited Gurgaon. If the new UP
government can come up with business-friendly policies, this would help the Noida real estate market, especially given that Noida is still quite affordable, compared with Gurgaon.
