Real Estate Boom in Delhi NCR

There is an unprecedented real estate boom in parts of India. These are the National Capital

Region certain parts of Delhi, Noida, Gurgaon, Faridabad. It is to a great extent, driven by the huge growth of the IT and BPO industry. As the IT industry grew, employees got onsite (literally - at the client site, as opposed to offshore) opportunities. Onsite typically meant being paid in US dollars and thus many employees earned a lot of money.

Cosmic India

The demand for plots of land went up with the boom in industries. But with the cost of a 30X40 ft plot plus home going for the equivalent of 5 million rupees in a good residential area, apartments soon came into favors.

The buyers earned a lifestyle equivalent to the lifestyles abroad, and they had the capacity to pay. This reduced the "matchbox" apartments on offering and has spawned a host of self sufficient complexes. Soft interest rates on home loans, a tax incentive on home loans and the general growth mode of the economy are other factors driving the real estate boom.

New apartment’s complexes have recreation facilities, basement parking, security, power back up, good lawns and even swimming pools, all of which are very difficult to get when one goes in for an individual plot.

When every builder began to offer these, the bigger ones began to offer multiplexes, shopping complexes and schools. Not content with differentiation, it is now snob value - Complexes modeled on resorts, European looks, vast open areas, pools lined with Italian marble are the latest fad these days. While this is a good thing, in the recent past, real estate in Bangalore has reached crazy levels of prices.

Even now, a significant percentage of the buyers are genuine buyers who intend to stay in the apartment they book. But when there is a genuine demand, speculators can’t keep off.

At the recent launch of a highly advertised complex in Delhi NCR, about 2000 apartments were sold in 2 days flat and there was a congregation of about 6000 people waiting to book apartments. Among those who booked apartments, many just got to choose the floor and pay the booking amount. No real apartment has yet been allotted to them. 

Considering the pathetic infrastructure in Delhi NCR, it is surprising why the rates are so high. Just outside these posh apartment complexes and layouts, roads are broken, small and there is no sign of any public transport at all.

Is it a bubble or the beginning of one? Is the bubble on its way to burst or if it will continue to grow for a while is something that will be decided by the growth of the economy.

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Tags : Boom in real Estate, Increasing trends of Real Estate,Delhi Metro influence property in Delhi NCR, property bubble to burst.