Delhi NCR has turned into a lucrative buyers’ market, thanks to a variety of reasons, after the huge disruption caused by the pandemic. However, like all other metros in India, Delhi NCR region has bounced back and has become irresistible for investors of both commercial and residential properties. Astro strategist Hirav Shah feels the upswing will continue throughout 2021, which spells good news for buyers, builders alike
Given the current situation, one question on the minds of many would be – when will real estate prices pick up in Delhi? Buyers would want to know about the expected property trends for 2021 and the real estate prices. Well, astro strategist, real estate investment advisor assures that they would be very soon.
However, one must understand here that the rate of property in Delhi is always fluctuating due to the floating market conditions. Added to this, given the present COVID-19 situation, everything seems uncertain.
The real estate market is perhaps one of the fastest growing in the world owing to constant demand for better residential, commercial, as well as hospitality spaces. As the world continues to grow and change with times, so do their requirements in terms of housing, businesses, and more. They seek the best for themselves, and the ability to show it through the place where they work, reside, or just enjoy.
Being able to own a home in the national capital Delhi, is not just an aspiration for many. It is symbolic of overall personal and social growth. It is not just residential property that garners interest these days. Property advisor, real estate strategist, real estate investment advisor Hirav Shah feels Delhi is a place full of possibilities. There is a huge inventory of unsold properties that the builders and developers are trying to get rid of. This has obviously impacted the real estate prices in Delhi.
Property investment in Delhi
Current status of commercial real estate
As is being observed in other metros, Delhi’s commercial realty scene is on an upward swing with increasing demand from large corporates for office space. It’s a good time to invest as the prices are at an all-time low when it comes to acquiring bulk office spaces. On the other hand, mid-size companies and MSMEs are looking at cutting down on their requirement of commercial spaces and workforce. However, there is an ongoing demand for small and mid-size offices.
The other segments of commercial real estate like logistic parks, warehousing, retail shops and showrooms and malls are figuring out their requirements based on the property up for sale in the market. India happens to be one of the most preferred destinations for multinational companies and there is tremendous growth potential for warehousing and logistics parks in extended industrial belts and land banks of metro cities. There is going to be increasing demand in the industrial warehousing and logistic parks segment for the next 36 months. Some of the developers and owners of warehousing segments are offering lucrative pre-leased deals for investors to earn a return on investment of around 8-10% per annum.
Current status of residential real estate in Delhi NCR
Delhi happens to be the national capital and it is bound to be impacted by post-pandemic effects. Delhi NCR’s booming real estate scene looks rather optimistic and the city has adapted beautifully to the changing times.
Property trends in Delhi show that a decline in property rates coupled with the need of buyers to have a permanent shelter has given people a reason to buy their dream home. The demand for spacious residential and commercial property is expected to grow through 2021. The builders and developers are offering affordable luxury property at attractive prices, which is expected to bolster the market. As the pandemic made people aware of their need to invest in property as a permanent source of income, those in the realty sector hope to see a major spike in the ownership of both residential and commercial properties throughout 2021.
Also, the measures taken by both central and state governments have kept the industry buoyant. Reduction in stamp duty, relief for mortgages and loans and the promise of extended support to the realty sector has given rise to a lot of optimism.
Thirdly, the sector has adopted digital processes rather swiftly and has imbued smart ways of communication and trained its staff to be ready. Buyers too have taken well to virtual home tours, video conferencing, online consultations. This is likely to result in a swift rise in online shopping of property during 2021.
Areas to invest in Delhi
South of Gurgaon
South of Gurgaon has good connectivity to all major cities in NCR and one can expect the same amenities as in Gurgaon, except for huge traffic jams. The area has plenty of housing options alongside luxury ones. As of now, the outsourcing industry in Gurgaon hires around 5 lakh people and about 2 lakh workers are employed by Maruti and Honda. Also, you can rest assured of good rental income if you rent out property in south Gurgaon. In the past few years, the prices have increased by 10-15% and realtors feel the prices will be moving upward in days to come. Hence it is wise to invest in the area.
Sectors in Noida
Situated on Noida-Greater Noida Expressway, Sector 150 of Noida is a much preferred hotspot for investors in residential property. The sector is so planned that 80 percent is full of greenery, 20 per cent is allotted to construction and about 42 acres has been set aside for development of infrastructural activities. It also falls on the Faridabad-Noida-Ghaziabad Expressway, Yamuna Expressway and Eastern Peripheral Expressway and is well-connected through bus services, metro and cabs. Besides, good educational institutions, corporate offices and F1 racing track make it ideal for investments.
Noida Expressway (Sector 142 to 149)
It is considered to be the most peaceful and fast emerging micro markets that connects Greater Noida to other regions of Delhi through Noida Expressway. Apart from big IT firms, the state government’s plan to develop a financial centre along the lines of Gujarat International Finance Tec-City (GIFT), is another reason for it turning lucrative. The aqua line metro expansion has also pushed up both housing and rental demand here.
Sector 118-122, Noida
Once considered a dead market, this area now offers mid-segment to luxury category ready-to-move in and under construction properties. It’s proximity to firms like TCS, Nokia, Tech Mahindra, HCL, make it a lucrative destination. Also, the state government has recently approved the Noida-Greater Noida West Metro expansion plan which will be operational by 2022.
Central Noida (Sector 74 to 78): This area offers high-end luxury residential and commercial projects and is considered to be the fastest urbanising zone in Noida.
Sector 100, 135, 137
Various MNCs have set shop around the area. Companies such as Sify, Matrix, Oracle, InfoEdge, Genpact, KPMG, IndiaMart and IBM are some of the prominent employers here. Demand for property is backed by robust rental demand, making it ideal for investments.
Prime residential destination in Gurugram. Provides a mix of constructed and under construction properties. Upcoming hubs for start-ups, small and medium enterprises, connectivity to National Highway 48 and Dwarka Expressway and development of social infrastructure in the form of shopping malls, schools and hospitals, make it an irresistible destination.
Vasant Kunj and Gold Links: Investing in these posh areas is bound to increase as the buyers can now pay Rs 1.5 lakh less on sq metre of land, thanks to reduction in circle rates and stamp duty.
3 periods important for real estate in Delhi-NCR for buyers as well as real estate developers
These periods will turn around the trust factor and buyers’ interest in Delhi real estate.
1. From 5th March, 2021 to 10 May, 2021.
2. July 5, 2021 to August 14, 2021
3. October 2, 2021 to December 15, 2021
Hirav Shah’s predictions for Delhi real estate
Commercial real estate in Delhi will begin to pick up from March 2021.
Housing real estate in Delhi will start to pick up around July 2021.