Uttam Nagar is a fairly new locality and was developed in 2008 mainly because of the recommendation of the Delimitation Commission of India. Uttam Nagar has become popular with people who have just moved into Delhi and has a number of apartments for sale or to lease out. The locality’s popularity stems from the fact that connectivity is quite good here. The blue line of the Delhi Metro, starts from Dwarka and connects Uttam Nagar not just to Connaught Place but also to localities such as Pragati Maidan, Noida, Anand Vihar, ISBT and Vaishali. The Metro line has also extended to the Airport line via Dwarka. Uttam Nagar has four Metro stations in its vicinity – Dwarka Mod, Nawada, Uttam Nagar East and Uttam Nagar West.
The locality is also quite close to Indira Park, Shanker Garden, Jeevan Park, Om Vihar, Mahindra Park, Bindapur and Vikaspuri. Thanks to the National Highway 58, Gurgaon is just an hour’s drive away while the international airport is just 12 km from Uttam Nagar.
One of the emerging trends in Uttam Nagar seems to be how house owners are knocking down their old homes and building extra floors to rent or sell. Many of the building have more than one floor. So there is a kind of mixed offering here for those who wish to rent or buy. The choices range from builder floor apartments to multistoried ones. The going rate for apartments here falls anywhere between INR 3400 to INR 4000 psqft.
Meanwhile the news is good for those who wish to invest in Delhi’s National Capital Region (NCR) as prices are likely to go south, since the number of unsold housing units coupled with lackluster sales has continued to haunt developers.
The buyers are mainly end-users who depend on housing loans to make the purchase. This category of buyer will wait for the house prices to drop to his or her satisfaction before making the purchase. The speculators have long fled the scene taking their money with them to invest in markets which give faster returns. Since the market dynamics have changed from an investor driven to end-user driven game, developers find that they cannot increase the prices.
Buyers are more cautious these days about investing in new projects. They check to see if the builder has received all the requisite approvals, whether there are any law suits pending with either the original owner of the land or with the authorities.
Many of the investors who bought apartments are now looking at the resale market. This is where new buyers will find apartments which are now being sold 15% to 20% less than the original sale price. This would well be the beginning of the bottom falling out of the reality market.
The NCR market is also witnessing a kind of standoff, with builders not budging on the price while the buyers are playing the wait and watch game. So what will happen next is the question on everyone’s lips.
What is immediately evident is that builders have delayed launching new projects. Research indicates that new launches have declined by over 65% and sales have come down by more than 50%. Developers have desisted from launches in the category of housing which costs above INR 3 crore. A majority of the new launches in the NCR have been in Gurgaon and most of them have been under the Haryana state’s Affordable Housing Policy. These housing units are priced at INR 25 lakh.
Nina Varghese for IndiaProperty.com