With fewer new launches in the last 6-9 months as developers focus on completing their projects and improvements in infrastructure, the suburbs around Delhi now offer ample opportunities for prospective home buyers. Highlighting this trend, Harinder Singh, a Delhi-based consultant says that as far as real estate is concerned, “There is now some sort of a developmental stagnation, in the central regions. Either one can see redevelopment projects, or a huge secondary market, where prices are still high for most people.” Consequently, there has been a correction in prices, which augurs well for buyers.
For example, the average price of residential apartments in Golf Course Road of Gurgaon during January to March, 2017, was in the range of Rs 11,000-12,500 per sq ft, a drop of almost 15-20 per cent over the corresponding period of 2016, when rates were in the range of Rs 14,500-15,000 per sq ft*. Same is the case with regions beyond east Delhi. Other areas, such as Noida Extension in the National Capital Region, have witnessed price stagnation over the past two years. A similar situation prevails in the suburban region of Manesar, which is closer to Gurgaon. The current average capital values of apartments are in the range of Rs 4,000-4,200 per sq ft*. (*The rates indicated are derived from primary research.)
Suburban areas in Delhi to witness healthy supply in the near future
Gulshan Sharma, who deals in properties along the Delhi-Jaipur Highway, says that “While launches have dried up, the suburban areas, where projects were delayed, are now seeing some renewed activity. A number of projects that are nearing completion, will be delivered within this year itself.” Suburbs along the Delhi-Jaipur National Highway, micro-markets such as Noida Extension, the newly developed sectors of Noida, the outskirts of Greater Noida and certain parts of Faridabad, are likely to witness good supply.
Experts point out that the recent changes in regulations, will also impact delivery timelines. Many states, including the union territory of Delhi, have notified the rules and established the authority under the Real Estate (Regulation and Development) Act (RERA). “Soon, the entire NCR, including the suburbs, will have a real estate authority. Developers will be in a hurry to complete their projects, to avoid getting into trouble with the authority,” says Sunder Khatri, a senior Delhi-based lawyer.
How will this benefit buyers?
Assured returns: Buyers who do not wish to live in their invested properties, can give it out on rent. “The rental market in most of Delhi’s suburbs has remained strong, on account of the working, migrant population that seeks low-cost accommodation. Often, due to their work requirements, owners do not move into their apartments. So, they put it on rent,” explains Rajiv Mehrotra of Sunshine Properties.
Developers, who are not able to give possession of the apartments immediately or on time, are also offering special schemes. One such buyer, Saurabh Kumar, who invested in a residential project in Manesar, which will get completed in 2018, is receiving monthly assured returns on his apartment. “The monthly pay-out is enough, to support my other expenses and take care of the equated monthly investments,” he says. Even Noida now has projects, offering assured monthly income. Some developers have even promised an extended 5-10 year lease guarantee, on purchased properties.
Improving infrastructure: “In the past two years, along with residential projects, a number of shopping complexes and other infrastructure, have come up in the suburbs. This has made living easier, for those who opt for these regions,” adds Mehrotra. For example, the regions beyond Sohna Road are well-connected via road and have a number of markets in close proximity. Similarly, parts of Greater Noida, including Noida Extension, now have good connectivity along with a number of malls, shopping complexes, schools and entertainment hubs, while similar projects have been planned along the Yamuna Expressway.
As infrastructure projects, such as the Delhi-Gurgaon Expressway and the Gurgaon-Manesar and Noida-Greater Noida Metro corridors, are completed, the improved connectivity to the suburbs will also boost the value of one’s investment.