The global economic slowdown has provided an opportunities to end users a unique opportunity to buy their long cherished sweet homes as prices in real estate market of National Capital Region have fallen steeply. In particular, apartments and flats are now available in the some markets at almost 50% of the prevailing price a couple of years ago. The average price in Gurgaon has fallen by almost 30% and in Noida by over 15% since 2007. According to PropEquity, by June 2009, Gurgaon has an unsold supply of 17,680, Ghaziabad had 17,028, Faridabad 11,026. Interestingly, the unsold supply in Noida and Greater Noida is very low as developers effected a sharp price correction.
Delhi/NCR always remain a first choice for both developers and residents. But due to economic downturn, developers delayed the construction of ongoing ones as well. But the sluggish sale increased their inventories, which put extra financing burden on them. Therefore, real estate Delhi/NCR developers had no choice but to change their strategy in favour of constructing affordable houses in the country, particularly in Delhi/NCR. Thus, developers altered there product portfolio and launched affordable housing across India to revive demand.
In the meantime, the government’s easy money policy drove interest rates down. Banks like SBI cuts interest rates to 8% for new borrowers. Therefore, the affordable housing concept with reduced home loan rates put the residential real estate India market on the path to recovery. With this innovation, the rise in demand was observed in the first half of 2009. DLF sold off the entire block of 1,400 apartments in Motinagar in central Delhi at Rs.4,500 per square feet, in just a couple of days. Similarly, Jaypee sold the whole stock of 3,000 apartments in Noida at the rate of Rs.2100 sq ft within a couple of days of opening the offer.
As per PropEquity reports, Noida and Faridabad demonstrated high absorption primarily due to the launch of affordable housing projects. The projects of Jaypee in Noida and BPTP in Faridabad were primarily driving the high absorption values in these cities with these developers commanding more than 70% of the market share for the period of Jan-Jun’09. Noida maintained its top position in NCR with the launch of 7,032 units and beats Gurgaon by a large margin of over 2,300 units. Ghaziabad also witnessed a good demand for affordable housing, especially in its Indirapuram area.
Indirapuram Properties have attracted the leading Housing Companies like Gaur Builders, Jai Krishan Estates Private Limited, Orange County, Assotech, etc to undertake swanky constructions in Indirapuram. As it is always said, Real Estate is the mirror of any city’s development; Indirapuram’s unprecedented rise in Real Estate and Property Development has made it develop faster in terms of infrastructure and commercial landscape. Indirapuram Properties, Apartments, and Flats now command high prices to an extent that many Banks and other Housing Loan Companies in Ghaziabad have been offering Home loans to enable people tackle the price rise. The main reason as why Indirapuram Properties have received so much appreciation is its enhanced connectivity with the Commercial centers in Delhi, Noida, and South Delhi.
In addition, the high-profiled global developers like Orange County are providing fantastic amenities and facility management like total green belt surrounding, 3 level luxurious Penthouses,high-speed elevators, Club with Pool , Gym , Steam , Sauna , Jacuzzi , Bar , Restaurant etc. Indirapuram Properties have no doubt opened a new investment option for all the residents as even Ghaziabad Development Authority is undertaking major steps in this direction. As the world is recovering from the economic slowdown, there is great chance of booming up of real estate in the coming months.