Impact of property price slump in Delhi

It has always been a dream for any prospective home buyer to own a residential property in India’s capital – Delhi. For many years, property developers had a great control over the real estate market in the capital city. The pricing was more when compared to other parts of the country and in spite of it there was a great demand. But the whole situation has turned upside down now.  Fortunately or unfortunately, there are more residential units waiting to be occupied in the capital city. This is because neither the property developers are willing to bring down their selling prices nor the home buyers are willing to pay the asking values. As a result, Delhi real estate has reached a stalemate situation as no transaction is taking place. 
To ease the situation, either the government is expected to take an initiative to increase the confidence of the home buyers or the sellers expected to relax their stand and lower their selling prices. Since nothing is happening at the moment, the residential realty market in Delhi is beginning to crumble.

New project launches have dropped down to nearly sixty percent in the first half of this year itself while the sales of such properties have dropped down to a massive fifty percent during the same time period. The slump in new project launches and sales clearly points out the resistance of the buyers towards highly-priced and unappealingly priced units. According to recent reports, there are nearly one lakh eighty thousand unsold dwelling units in NCR alone and at this pace of sales it is expected to take nearly five years to sell them all. This demand-less situation has in fact driven property developers to look for ways to exhaust their present inventory in hand instead of constructing new ones and blocking their finances by investing on them.

NCR was an investor’s marketplace once upon a time when there were more takers even if the property developers hiked their property values artificially. With buyers becoming wary of making purchases instinctively, distressed sellers are providing discounts from twenty to thirty to percent to recover the money that has been blocked as apartments in Delhi. But this bait has not lured investors since they too do not want to invest their hard earned money in projects that are going to appreciate at a very slower pace. Many are even extra cautious to buy clean and non-controversial projects. Some of the suburbs where the values of flats for sale in Delhi have dropped include Dwarka, Mayur Vihar and NCR.

Since realty market drives the economy of the country, experts are of the view that the situation will ease soon.  The socio-politico scenario too is getting better with the rule of a stable government in place. In addition to it, the focus is more on infrastructure and land development that many believe that it would stimulate the demand. Increase in salaries and lower EMIs will be a reality in the near future whereby increasing the buying capacity of individuals too.

Devanahalli-One airport and a whole lot of development

Rewind back to 2000 or an earlier year and you would not have wanted to live in Devanahalli. It was a typical peasant’s neighbourhood where roads never existed and water scarcity was always rampant. But times change, especially in real estate they change at the speed of light. That is what happened with the property prices in Devanahalli when the Kempegwoda International airport commenced operations in 2008. One airport and Devanahalli has made itself amply visible in India’s fastest growing IT city, Bangalore.

Reaching Devanahalli

Devanahalli is located on the northern part of Bangalore, almost 35 Kms from city centre. Quick way to reach is through the NH 47, also known as the Bangalore-Hyderabad Highway or the Bellary Road. Further, NH 7 and 207 also snail through this village bring the metro close like neighbourhood.

NH 7 from Hebbal to Devanahalli with its 6 lanes roads (to be increased further in the near future) makes it possible to reach the airport within thirty to forty minutes. With the execution of the metro Phase 2 plan, Devanahalli will also have metro connectivity to airport.

Devanahalli’s growth story

The land rush at Devanahalli began with the signing of the MoU between AAI and KSIIDC in 2005 to build the Kempegowda International airport. By the time the first phase was completed in 2008, almost every inch of land in Devanahalli was taken over by real estate promoters and developers for manifold times of the original prices.

Per acre cost of Devanahalli was a humble number in 1990s. Come 2008, the price shot up to Rs. 250/sq.ft and today it is almost 1500/sq.ft. Most promoters are yet to commence construction here, but it is definite that the prices will skyrocket further higher.

Residential and industrial development

The many industrial parks present in Devanahalli are sure to boost the residential and commercial development in the region. Three more parks exclusively for hardware, aerospace and IT/BT are proposed in the region which will boost residential development and industrial activities in the region. NH 7, NH 207 and NH 4 will provide ample road connectivity without any traffic bottlenecks.

250 acres of land are set aside for developing the M.S.Ramaiah Medical Research Centre to cater to the educational requirements of the city as a whole. Schools, colleges and other social infrastructure facilities necessary for comfortable living are also adequately present in Devanahalli.

Housing at its best

Bangalore enjoys a high concentration of HNIs (High Net worth Individuals). Devanahalli also enjoys huge demand for high-end living facilities from the senior management cadre employees of the IT industrial corridor. With sophisticated tastes and an appreciation for serene living they are one reason why the land values in Devanahalli has shot up in such short time.

The demand for affordable housing is also very high. Patel Neo Town, VBHC Attibele, Sovereign Lakefront, Provident Welworth are some of the affordable residential projects in the region. Golden Gate Properties, Purvankara, Shriram Properties, Brigade Group, Ozone Group, etc. are some of the high flying names in luxury housing that are creating the upper class living ambiance in Devanahalli.

The right time to invest in Devanahalli is now. There was no better time in history or will there be in the future when property prices have been so inviting for an aspiring homeowner.



Pratheepa writes for indiaproperty.com, a leading online portal dedicated for real estate sector in the country. It provides property marketing solutions for buyers, seller, and real estate agents.

Ghodbunder Road in Thane is the new realty hotspot

Ghodbunder Road in Thane has opened up new venues to many home buyers who are looking for pocket-friendly homes. In spite of the swift infrastructure developmental activities in and around this place, it has managed to remain nominally priced. People who have been watching the developmental activities in Mumbai are well aware of the fact that Thane has grown from one of the small suburban towns located at the peripheries of Mumbai to a metropolis that can take care of its needs all by itself. This place with integrated townships, expansive flyovers, broad roads, high-rise structures and uninterrupted highways has attracted both property developers and buyers that it has boosted the whole realty scenario.

Ghodbunder Road is nearly twenty kilo meters long linking the Eastern Express Highway and the Western Express Highway, the two arterial roadways of Mumbai City. The Western Express Highway is the one that begins at East of Bandra and turns into the National highway heading towards Gujarat, while the Eastern Express Highway begins at Sion and ends at Thane. Apart from offering swift access to various small-markets such as Ghatkopar, Bhandup and Mulund, this road route enables reaching Mira road from Thane in no time.

In a move to further more improve the locality’s infrastructure and connectivity facilities, development authorities has decided to come up with a monorail network that would act as a supportive service to the proposed Metro project in the region. The Metro corridor is believed to extend from Kasarvadavali to Wadala on the Ghodbunder Road.  Residents are less likely to face traffic woes. Thanks to the Kapurbawdi Flyover that has been put to use to ease traffic congestions. With quick development in the cards and availability of huge land layouts, this area has received the attention of various reputed property developers. Puraniks Builder, Vijay Group, DS Group, Runwal Group, Harmony Lifestyles Group and Rosa Group are some of the property developers who are already present in this region. Due to this, the probability of finding a wide array of housing choices ranging from one bedroom apartments in thane to duplex bungalows has increased considerably.

Ghodbunder Road is also witnessing more commercial activities. Needless to say that, this area is mushrooming with more malls, retail outlets, banks, showrooms and corporate offices. MGM IT park is supposed to be one of the major business centers to begin its operations soon. Observing the prevailing situation in Thane near Ghodbunder Road, realty experts firmly believe that the prices of properties in Thane to appreciate by nearly seven to ten percent. At the moment, the worth of newly built multi-storey apartments in thane range from Forty lakh rupees to two and a half crores while the average property values are found to be in-between eight thousand and ten thousand per square feet range. When compared to the capital values of properties situated in the middle of Thane, the worth of the properties situated near Ghodbunder Road in thane is very insignificant. No wonder, property buyers are eager to grab their share of opportunity before it is too late.