Gurgaon residential property investor update

Over the last one year, capital values rose by more than 30-35% in Gurgaon's residential sector. Developers are now going slow on execution of real estate projects, resulting in a drop in supply of residential apartments in most prime markets. Emerging residential areas are still not able to meet the huge housing demand.

Two key reasons for increasing rental and capital values for residential properties are:

 Because of rampant construction delays, the expected supply of residential properties announced in early 2009 has not been able to reach the market. Around 500,000 units that were scheduled for possession in key markets by end of 2011 are delayed by another year

- There has been an increase in lateral hiring by corporates. With job scenario improving all over the country, people have more to spend. This has resulted in good investment opportunities, and investor sentiments in the affordable and mid-income segment of Gurgaon's residential market have improved.


Hot Locations

Residential property prices on the upcoming southern peripheral road connecting to National Highway 8 have seen considerable appreciation over the past few months. This location holds great investment potential thanks to enhanced connectivity that NH8 provides to Manesar and Dwarka. In particular, residential properties along the Dwarka Expressway have attracted interest from the mid-income buyer group. As prices soar in upcoming locations of Gurgaon such as Golf Course Extension, Sectors 70 and Sector 78, buyers have been looking at these alternate locations.


The Downside

That said, not all residential projects rank equally from an ROI perspective. Whatever appreciation in capital values Gurgaon residential properties have seen does not seem as significant when seen in the light of factors like the higher interest rates on home loans. Nominal capital appreciation of a property may be as high as 25-30%, but the actual ROI after making adjustments for inflation and higher interest rates can be nil. There is a 75% chance of investing in a property that will not give investor any gains - and in some cases it may even result in a loss.

Gurgaon is expected to see a residential property supply explosion. There are 55,000 ready flats on the market today. We expect to have around 6000 ready flats by end of 2012, with an additional 65,000 by the end of 2014. Another 20,000 in 2015 will take the final tally to almost 150,000 by the end of 2015.

Out of the total supply, properties which offer locational advantages in terms of vicinity to airport and Metros connectivity will have better absorption. Strategic location and superior amenities will be the keys to profitable residential property investment in Gurgaon in the foreseeable future.

Long-term fundamentals

Gurgaon remains promising for office space, and there are good prospects for more major global players setting up operations here in near future. On the whole, this augurs well for the residential property market, more or less assuring relatively healthy absorption of residential space in the times to come.  The new infrastructure initiatives being undertaken by the Government will also play a crucial role for Gurgaon's residential and commercial property sectors.

Source :- http://www.moneycontrol.com/news/real-estate/gurgaon-residential-property-investor-update_682406.html

Why Gurgaon is a better property destination than Noida

Home sales rose across most major markets in the country between January and March 2013 compared to last quarter of 2012, thanks to new project launches at attractive prices and the discount schemes on offer. Expectations of further rate cuts on home loans and the impending revival of the economy is likely to further fuel demand for new homes.

If you are planning to buy a house around Delhi, Noida and Gurgaon must be high up on your list. The satellite cities are the most sought after destinations when it comes to the National Capital Region.

Gurgaon:

Often called the 'Millennium City', Gurgaon saw demand for new homes slowing for the third consecutive quarter, according to a Bank of America Merrill Lynch report. However, the slowdown in demand had no effect on prices, which rose by an average 4.5 per cent across projects over the three-month period, the report says.

Fewer project launches during the quarter, lower inventory and rising speculation among investors led to a strengthening of prices.

Real estate biggies like DLF and Unitech, which have executed large projects in Gurgaon, launched fewer apartments to focus on execution and inventory clearance. The absorption rate in Gurgaon is slowing but is still the highest in the country among tier I cities indicating robustness in the market, Bank of America adds.

Gurgaon has the lowest unsold inventory of unsold flats in the country, the report says.

According to Bank of America, Gurgaon will continue to show strength on the back of rising number of end-users and investors.

"Prices of ongoing residential projects in Gurgaon continued to move northwards despite weak macro indicators and slowing demand trends," the report states.

Noida:

Noida also witnessed a slowdown in new launches in the first quarter of 2013 but, unlike Gurgaon, demand remained steady.

Noida is the most affordable city among tier I cities, but its absorption rate has remained subdued and unsold inventory continues to rise since year 2010, Bank of America Merrill Lynch says.

Home prices have remained depressed in Noida because of a large number of project launches, poor execution and tepid price appreciation. As a result, investors have fled the market.

Bank of America Merrill Lynch said the timely execution of projects will be the differentiating factor for Noida in the near future.

So, if you are an end user looking for affordable housing, Noida is a suitable destination. For those with deeper pockets, especially investors looking to make a quick buck, Gurgaon is the way to go.

Source :- http://profit.ndtv.com/news/property/article-why-gurgaon-is-a-better-property-destination-than-noida-320498

Paras Quartier in Gwal Pahari Gurgaon Call 9810602376 - Real Estate, Residential, Apartment/Condo - Gurgaon, Haryana, India 632315

Paras Quartier in Gwal Pahari Gurgaon Call 9810602376 - Real Estate, Residential, Apartment/Condo - Gurgaon, Haryana, India 632315

Latest Property News on 'Gurgaon' State seeks removal of eway toll plazas

Property In Delhi - Ncr

The Haryana government on Thursday told the Delhi High Court that inconvenience caused to commuters on the Delhi-Gurgaon Expressway was bringing disrepute to it and sought termination of the concession agreement between the NHAI and its operator.

If the proposal, which has also been suggested by financier Infrastructure Development Finance Corporation’s (IDFC), is agreed by all, around 2,00,000 vehicles plying between Delhi and the Millennium City won’t have to pay the toll amount.

The Haryana government urged the court to consider the suggestions it had to offer to resolve the issue which included removal of both the toll plazas and termination of operator Delhi Gurgaon Super Connectivity with a payment of R118 crore.

Justice Manmohan Singh will hear Haryana’s plea on July 31.

Referring to the IDFC suggestion for removing the first toll plaza at the border and shifting the second at Kherki Daula beyond Gurgaon’s city limits, Haryana said, “It has been requesting the NHAI and the union transport ministry for removal of both the toll plazas.”

“The state of Haryana expects an early solution to this. It is a source of inconvenience to commuters as the toll plazas cause huge traffic snarls and hinder economic development of the area,” the state said.

The NHAI has been engaged in a legal battle with the expressway operator since February 2012. The court gave time to the NHAI and the operator DGSCL to discuss IDFC’s suggestion to resolve the issue.

The concessionaire had told the court that it was ready to get out of the project provided it was cleared of all the liabilities.

“It is a gross misinterpretation of facts to say that the toll plaza is running in losses. It is also an injustice as attempts are being made to push us out when profits have started coming in after we invested so much in the project,” said senior lawyer Abhishek Manu Singhvi representing the DGSCL.

http://www.hindustantimes.com/India-news/gurgaon/State-seeks-removal-of-eway-toll-plazas/Article1-1091170.aspx

Source :- http://www.indianrealtynews.com/category/real-estate-india/gurgaon/