If you have money to invest and have plans of investing in Delhi’s National Capital Region (NCR), the time is right now. Experts say that the market’s focus has shifted from being investor driven to one which is begging buyers to purchase.
This change in the market sentiment is mainly the result of a drop in the sale of homes. In the first three months of 2015, sales have dropped by almost 50% compared to the corresponding period in 2014. There has also been a fall in demand of flats which are ready for occupation.
Builders have also delayed new launches. It is estimated that 90,000 housing units are still under construction and almost all are being delayed.
During this period, it has been estimated that 1.7 lakh units are lying unsold in the Delhi NCR. Experts predict that given such a market scenario, house prices are likely to drop in the coming four to five months.
Reports indicate that average price correction has been by more than 15% during the course of the last year. There has been a drop in prices in areas in the NCR which have been as high as 30% while others are around 15%.
The reasons why there are so many unsold flats are basic. The first reason for the inventory pile up is that most of the flats have problems with regulatory clearances. Some others are tied in litigations which will take years of court time and finally a great majority of these constructions are in areas which are in very bad locations.
A word of warning to anyone investing at this point of time: It is always advisable to do the due diligence very carefully. You will have to check and see if the papers are all in order; if the builder has all the environmental clearances as well as the clearances from the local civic authority. Make sure that the building has electrical, water connections and sewerage connections as well.
Anand Vihar is a suburb in east Delhi which is also known as Trans Yamuna. It is the administrative district of the NCR. On the west is the River Yamuna, to the north is north east Delhi, on the east is Ghaziabad and to the south is Gautam Buddha Nagar.
The residential real estate available in east Delhi and in Anand Vihar is a mix of independent houses and Delhi Development Authority (DDA) apartments. Though most of east Delhi caters to the middle income group, Anand Vihar is a slightly more up market locality in east Delhi.
Investing in Anand Vihar real estate would be a good idea because of the good connectivity in this locality. The going rate for apartments here falls anywhere between INR 10,500 to INR 18,000 psqft. Anand Vihar is the centre for connectivity in east Delhi as the elevated metro station of the Delhi Metro’s Blue Line is located here. The metro station is also connected to the Anand Vihar Inter State Bus Terminal as well as a railway terminal which is spread over 42 hectares.
East Delhi is considered as one of the major commercial centres in Delhi and there are a large number of small and big retailers here. The Commonwealth Games Village is in this region of Delhi; this was jointly developed by the DDA and Emaar MGF.
The major growth simulators for east Delhi and for Anand Vihar have been the better connections with other parts of Delhi and the NCR. The Commonwealth Games, despite, the bad press it received at that time, has helped to develop the infrastructure in this region.
Nina Varghese for IndiaProperty.com
Image: “Anand Vihar metro station – board” by Superfast1111 – Own work. Licensed under CC BY-SA 4.0 via Commons – https://commons.wikimedia.org/wiki/File:Anand_Vihar_metro_station_-_board.JPG#/media/File:Anand_Vihar_metro_station_-_board.JPG