NCR Market At Takeoff Point – The Indian Express – 06-Dec-2014
December 11, 2014 - Uncategorized
Post the DDA housing scheme results, fence sitters who did not make it are scouting for a home. Signals of an interest rate cut
going forward and relaxation in FDI norms are set to provide a boost to the NCR market, experts feel
The residential real estate market in the National Capital Region is slowly but steadily coming back to normalcy after the results of the draw for Delhi Development Authority’s flagship housing scheme was announced in November. While over 10 lakh applications were submitted for 25,040 flats across various categories in the city, market players say that a large number of unsuccessful applicants who were fence sitters in anticipation of success at the draw, have now started prospecting for a home. As a result, there has been a noticeable rise in the number of queries over the past couple of weeks.
Within a fortnight of the DDA draw, the government has notified the relaxation of the norms in foreign direct investment in construction where the minimum holding period has been done away with and the investment and built-up area threshold have been significantly reduced.
In addition, the possibility of Reserve Bank of India announcing an interest rate cut in the first quarter of 2015 in its monetary policy review is likely to give a renewed boost to the housing market in the months to come. But the mood is not the same across all micro-markets in the NCR. While Noida may benefit from entry of new buyers, Gurgaon may continue to suffer as prospective buyers are now getting attracted to the housing projects that are being launched under the affordable housing policy of the Haryana government.
Cause of the downturn
Industry players say that several reasons led to a decline in the real estate market in the NCR. While a dip in demand resulted in an oversupply situation and a rise in inventory, the DDA housing scheme took a large number of prospective home buyers out of the market as they were awaiting the results of the draw before entering the market for their home purchase.
“Since the DDA draw has been announced, we have seen a significant rise in the number of flat bookings. Also, the number of queries have witnessed a jump,” said Honey Katiyal, MD, Investors Clinic. There are others who agree and say that while investors may not be knocking their doors, end users are getting into the market.
“While it is not a market for investors to get into, end users who are looking to buy a house have a good opportunity as the prices have corrected and many applicants of DDA housing scheme are now entering the market for their home purchase,” said Sandeep continued…