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:
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.
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.
Real estate in Gurgaon, a good investment ?
Is Gurgaon a dream destination for the real estate investor? It is touted as the next industrial hub, the residential heaven and developmental maximum city. But is it too good to be true?
The happening place
Gurgaon is the happening place at Delhi's shoulder. When New Delhi filled up, Gurgaon exploded. The Haryana government is doing all it can to make the best and brightest of all tier two and three cities. Soon you will find the tallest buildings, the widest roads, the swiftest traffic, the glitziest malls and the swankiest hotels, to believe the swaggering developers.
You are told that the city holds the greatest promise for business, recreational, hospitality and residential sectors. This is on its way to becoming reality - the government and immense private investment is pouring into the city. You can travel in all directions on six-lane highways, and live in great looking condos, bungalows or flats. You can shop at fantastic malls and eat at great restaurants.
Practically all the big industry names will be your neighbors, and you will walk along leafy avenues, play golf on pristine, manicured greens and swim in gorgeous pools. If you have money, Gurgaon is the place to be parking it.
So what's the catch? The problem is, the hype was way too premature, causing prices to skyrocket much before promises were delivered. Today, you will pay as much, or more, for a square foot of land or a house than in most places in metros. Rentals are terrible, too.
At present rates, Gurgaon offer value for money. Rates are falling and will fall some more. Vacancy rates for flats are significant because of exorbitant rents. If, as promised, the city attracts all the investment and industry, employment and occupancy will rise, demand will follow, and prices will inevitably rise again.
In the years to come, the city will prove a good investment. Today it is overpriced.
Are you headed to Gurgaon? Are you attracted by the offers of beautiful townships with superb amenities and lifestyle embellishments? Did you invest in Gurgaon before the boom? What other cities hold the promise Gurgaon had a decade ago?