REAL ESTATE

Residential property rates set to drop in Delhi-NCR

The residential property rates in Delhi-NCR are expected to fall in the forthcoming three to five months. In the last three years, it is for the first time that the residential properties in Delhi and the national capital region (NCR) have dropped to almost 50 per cent as found for the months of January to March.

In some areas, the prices have fallen by 20 per cent to 25 per cent in 2014; and since there are no signs of the sales pulling up hence the developers are likely to slash the rates even more.

As per experts, the rates may further be slashed by another 15 per cent to 20 per cent by the developers who are keen to clear up their unsold inventory.

“Sales were down 50 per cent during January-March 2015 against a year ago and new launches have reduced,” said Ashutosh Limaye, head of research and real estate intelligence services in Jones Lang LaSalle. “Unsold inventory in Delhi-NCR is at its peak of 170,000 units in January-March. Given such a trend, prices are set to fall by 15 per cent to 20 per cent in next three-five months.”

By the end of March, there were around 1,45,000 unsold units in the NCR. Out of these, Noida had the maximum pileup of 100,000 units followed by Gurgaon having 26,000 units.

CEO of realty research firm PropEquity, Samir Jasuja also gave similar views. He said, “Sales of residential units in NCR have dropped 78 per cent from 26,110 units in January-March 2013 to just 5,729 in the same quarter of 2015. This is primarily due to a demand and supply mismatch, and investors moving away from the sector.”

He further added that the constant drop in sales has inclined the market more towards buyers and against the inventors.

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