Does real estate price in Delhi NCR increases?

The real estate market in Delhi have always been very volatile in the recent past due to supply and demand dynamics. If you have bought a flat in Delhi in the last quarter of last year, then you maybe a lucky one as it was the best time to buy a house in Delhi. During last quarter of the year 2014, the secondary market prices of properties in Delhi witnessed a dip of 25-30 per cent due to inventory pile up. This inventory pile up made investors go out of cash and made them to sell properties in Delhi for a comparatively lower price. Though these prices were not too low but were little less when compared with peak prices that prevailed in the first half of the year 2014. Though this statistics shows that this year started off with real estate being favourable for the potential home buyers, buyers were not still happy with the prices as the capital city has the highest of prices even for not so prime areas in Delhi.

The April- June quarter of the year 2015 has seen a rise of just 1% in the real estate prices in Delhi NCR. Even though the inventory pile up and subdued demand were still showing high in Delhi, this rise is just by 1 percent which is very insignificant. The property prices in South Delhi fell by 2% while North by 5% and West Delhi dropped by 8% according to the Delhi real estate market.

Meanwhile the government of Delhi cleared the decks of land pulling it the suburbs of Delhi two months back which have helped in bringing down the property prices by 15 to 20% in the next two years in Delhi. This land acquisition by the government will make abundant of land available for affordable and low-budget housing projects in Delhi. It will also help in expanding the urban limit of Delhi region. It is expected that if the builders offer required inventory on a steady phase. When high prices of properties in Delhi meets less demand then obviously the real estate sector will have a declining trend, which is now currently happens in the Delhi NCR. 

The Delhi Development Authority recently came up with the Delhi Master Plan-2021, according to which it will work along with private sectors to urbanize about 20,000 hectares of land. When this urbanization starts, there will be about 1.4-1.6 million dwelling units in the outskirts of Delhi. This plan aims at bringing a house to meet the growing population of Delhi which may strike a high rate of about 23 million in the year 2021.

The recent survey in Delhi and NCR including Noida and Gurgaon indicates that there are about 1.7 lakhs of unsold flats in these regions. With this inventory pile up going high on numbers, prices of flats in Gurgaon has went down by 25%, flats in Noida by 30% and flats in Delhi by 15%. These ups and downs in Delhi real estate market have resulted in a crucial differences in the prices here.