Indirapuram has emerged as good residential location for Delhis burgeoning middle class who are looking for their own first home to live in. Unlike many other locations this area has attracted people who are looking for an apartment for self-occupation rather than as an investment.
The reason is not far to seek. Buying has just become a better deal than renting due to a massive spurt in property prices over the last year. Also,the price increase has resulted in landlords having a much higher expectation of rent,and this is increasingly eating into a substantial portion of earnings for many and compelling them to go in for purchase,as they feel that being a home owner and will free them from the trap of paying high rents.
The area has seen a spurt in new projects along the NH 24 such as Crossings Republik,which are attracting buyer interest after the recent Noida Extension episode. With sizeable numbers already residing here,Indirapuram presents a good proposition for owning a home. The current prices are in the range of Rs 4,000-4500 per sq ft for ready to move in properties,and Rs 3,500-4,000 per sq feet for under construction projects. The titles here are clear as there is no land allotment from the government,and plots are registered in the names of builders.
It is expected that this area will witness a slow but steady rise in prices. The number of new apartments for sale in the area,or those that are soon going to be ready for sale is extraordinarily low in this market. In fact,there would just be a handful of free-standing buildings for sale,or even those which are under construction. The challenge for Indirapuram,therefore,is to generate enough demand to bring in a spurt in new or resale houses.
The prices in this area have spiked far less than they have in the bubble areas,mainly because the place did not get as many speculators who were willing to flip their homes.
Even a modest increase in demand would quickly translate into strong gains,in both prices and new construction – this is expected to happen soon,since there has been a tremendous increase in the number of job opportunities in the areas nearby.
Given the proximity to Delhi and with improvement in infrastructure and connectivity,Indirapuram should see a steady rise in prices over time. The buyer should,however,should bear in mind that with enough new inventory being available in this area for the next couple of years,it may not be very easy to get a good resale price soon.
Overall,the real estate market of Indirapuram looks quite promising in the near future,with fairly reasonable property rates and lot of housing options available. It would definitely prove to be a good bet for those looking towards owning their first home.
Author is MD,Bajaj Capital