Dipping Prices

The property prices in Dwarka had touched exorbitantly high levels during the real estate boom.

The property prices in Dwarka had touched exorbitantly high levels during the real estate boom. However,they are finally showing signs of reducing. A few more months might lead to prices dropping to more reasonable levels for middle-class professionals,a market that Dwarka is ideally supposed to cater to.

In the first quarter of last year,which is between January and March,prices in Dwarka had touched Rs. 6938 per square feet. This means that an average 2 BHK flat of area roughly 1000 square feet was priced at almost Rs .70 lakh. In the second quarter (between April and June),prices were still touching Rs. 6500 per square feet. Considering the buying capability of the average middle class that Dwarka was originally set up for,these rates were too high. There was no fresh supply in the first two quarters of last year,which led to the increase in prices with demand having remained steady, said Vineet Singh,Business Head,99acres.com. However,the slowdown in the market and the economy as a whole is finally beginning to impact prices in Dwarka. Rates are now hovering around Rs 5000 per square feet. Prices have corrected by about 20-25 per cent. However,there should be a further correction between 5 and 20 per cent over the next 6 months, added Singh. 3 BHK society flats which are currently available between Rs 70 lakh 1 crore,might fall to levels as low as between Rs 50 60 lakh.

The market in Dwarka has always been reflective of economic activity in the Delhi and Gurgaon regions. With the slowdown having hit the IT sector,professionals working in IT hub Gurgaon are thinking twice before investing in their first home. Dwarka has always fed on the Gurgaon boom. With fewer IT hiring,there is less demand for homes in Dwarka. Even those who are employed are reluctant to invest, explained Singh.

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Dwarka is extremely affordable when it comes to rental rates. A 2-3 BHK apartment of size between 1000 1400 square feet can be rented at Rs 12,000. Rates had increased to about Rs 14,000 between July and September of last year,but the drop in demand has again dragged prices back to their original level of Rs 12,000.

Dwarkas infrastructure is yet to reach its maximum potential,particularly after reports of alleged faulty planning of the Dwarka-Palam flyover having caused eight deaths in eight days. I would have to disagree with that. Dwarkas infrastructure has shown remarkable improvement over the last one to one-and-a-half years,not to mention how connectivity has improved with the Metro construction, said Singh. The flyover is an isolated case that needs to be looked into by the authorities. But overall,infrastructure is acceptable. Residents complain that the water quality is hard though water supply is fairly regular. While Dwarka contains self-sufficient markets,there are no malls or cinema theaters within the colony. Gurgaon is the closest destination and yet getting to the nearest Ambience Mall requires a drive of about 20-25 minutes.

However,Dwarks offers reasonable rates at a time when purchasing a house in Delhi has become a distant dream for most middle-class professionals.