Delhi-NCR has been one of the most thriving real estate markets of the country. However, recently the area has faced a slump in its real estate market. The main reasons behind this development are escalating property prices, inventory pileup, delay in delivering projects, and high home loan interest rates. While some areas still stand a chance, others should be completely avoided by first time home buyers.
Planning to buy a house in the National Capital Region? Here’s a list of 5 areas that you should check:
Greater Faridabad has become infamous due to land parcel disputes, delayed under construction projects, and scam by developers. Although, property prices in Greater Faridabad have been lower than other regions of NCR, it has not been able to attract investors because the area has witnessed the lowest capital appreciation in the past few years. The primary cause behind this is the presence of too many industries in this region.
Another major reason behind Greater Faridabad’s declining real estate market is the delay in delivering projects. In some cases, developers have absconded after selling flats, thereby leaving the project incomplete.
The real estate market of Noida Extension has been affected due to the high inventory pileup. Around 1.5 to 2 lakh units will be put on the market this year without revising the property prices. Land acquisition problems have further strained the realty market in the region. Since developers have to pay huge compensation to farmers, they have increased property prices to balance the amount.
Delhi’s L&J Zones
Ever since the introduction of the Land Pooling Policy, the market for buying land in Delhi’s L&J Zones has become risky. Retail buyers should check any scheme that falls under this policy. Likewise, small buyers shouldn’t buy land in this area as the return on investment is quite low. Additionally, this area also lacks adequate social and civic infrastructure so far.
According to CommonFloor.com, properties in Noida Extension have an annual estimated sale price appreciation of -7%.
NH-24 Stretch in Ghaziabad
Ghaziabad’s real estate market is booming due to several infrastructural developments and the availability of good township projects. However, the capital price appreciation of properties located around NH-24 will depend on the growth of industries in the future.
The government has proposed to build a six-lane expressway in order to decongest traffic in this area. But, the project will take appx. six years to complete, which will make travelling around the area a task. At present, residents travelling to and from Indirapuram also have to face heavy traffic congestion. You should consider investing in this area only if you are ready to face these challenges.
If you are planning to buy a property in Gurgaon, you should always check the status of the projects. Delay in delivering projects is a common nuisance in this region and therefore it is always better if you verify the project status before making any payment.
It is advisable to stay away from pre-launches in Gurgaon and instead opt for projects, which are close to completion. Usually, when you opt for a project that is still in the pre-launch stage, you end up paying more than the market value of the property.
Delhi-NCR’s real estate market has the potential for growth but as a first-time home buyer, you should look for areas with good capital price appreciation and excellent infrastructure.