Steady stimulation

There is a slow but definite residential real estate revival happening in the Delhi-NCR region.

There is a slow but definite residential real estate revival happening in the Delhi-NCR region. Sales in many parts have increased by between 5-7 per cent over the last two months. This comes after a rather protracted period of almost complete standstill in this segment. This market is now almost completely devoid of investors and is driven primarily by end users.

So far,the Delhi-NCR region has seen a correction of between 20-30 per cent in new projects and of between 5-10 per cent in ready-to-move-in properties. The difference itself implies where the demand for residential real estate now lies there are now takers for rationally priced and well-located apartments that are ready for possession. Some rather successful recent launches serve to illustrate the point that nothing sells like real value in a changing world.

DLF recently launched Capital Greens at Motinagar and sold all of the available 1400 apartments in 2/3/4BHK configurations in three days flat. DLF had launched this project at Rs. 6000-7000/sq.ft.,but modified the asking rate to Rs. 4500-5500/sq.ft. The price was right,the location attractive and the configurations right on the button the 2/3BHK format is the best-selling model in the current Delhi-NCR residential market.

Sohna Road in Gurgaon is seeing a significant upscale in residential transactions because many of the projects are visibly and convincingly close to completion. In many of the projects on Sohna Road,buyers can reasonably expect to take possession within the next 2-3 months. With property rates ranging between Rs. 3500-4000/sq.ft. and the location being extremely suitable,all the USPs for the current market are in place there.

Unitech recently launched Uniworld Garden II on Sohna Road,and has already sold close to 850 of the 1000 apartments there. The reasons for this projects success are once again good price and location.

Noida is very much a part of the slow revival happening in the Delhi-NCR region. Jaypee Greens Wishtown Klassic is showing some impressive sales figures there right now. Again,the reasons are good price at Rs. 3300/sq.ft and the proximity to Delhi.

We expect to see the sales graphs show another marginal upward movement after the forthcoming elections,which may bring a certain degree of assurance over the stability of policies with it. l

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The writer is managing director North India Jones Lang LaSalle Meghraj