Five markets in the national capital region (NCR) have seen an increase of 1.6-3.4% in prices of residential properties, the highest year-on-year climb since 2017, according to a research by Anarock Consultants.
These markets, which saw an uptrend in average prices in the first quarter of 2021 compared with the year-ago period, include Greater Noida West, Noida Sector 150, Raj Nagar Extension in Ghaziabad, Dwarka Expressway in Gurgaon and Central Noida.
The reason for the price rise is because these areas were among the top areas with maximum housing demand and sales in the last two quarters.
“All these localities have properties in the affordable and mid-segment categories – the two major segments driving demand in the residential sector in Delhi-NCR currently. Given the good sales, developers saw it an opportune time to increase average prices,” said Santhosh Kumar, vice chairman, Anarock Property Consultants. “Also, property prices in all these localities have largely remained stagnant over the last six to seven years, and hence, was long overdue.”
As per Anarock Research, average property prices in the top seven cities saw some movement in Q1 2021, with most cities recording a rise anywhere between 1-2% over Q1 2020 – except Kolkata, where prices remained stagnant.
Among all top cities, NCR and Bengaluru saw average property prices rise the maximum–by 2% during the year.
“The hike witnessed in the residential properties of these micro-markets reflects the regained confidence of homebuyers,” said Shashank Vashishtha, executive director, eXp India.
Greater Noida West saw the maximum price appreciation of 3.4% during the period – from Rs 3,370 per sq ft in Q1 2020 to Rs 3,485 per sq ft in Q1 2021.
While Noida’s Sector 150 saw average prices rise by 2.3% during the year–from Rs 5,100 per sq ft to nearly Rs 5,215 per sq ft.
“An increase in price in the present situation is an indication of acceptance in the market,” said Pradeep Aggarwal, founder of Signature Global Group.
According to the Anarock report, Dwarka Expressway in Gurgaon saw an average property price rise of 1.8% during the period – from Rs 5,362 per sq ft in Q1 of 2020 to nearly Rs 5,459 per sq ft in Q1 of 2021.
“The residential real estate sector has remained resilient, and the increased prices indicate optimism and revival of confidence of homebuyers in the segment,” said Santosh Agarwal, CFO, AlphaCorp.
According to Sarthak Gaur, Director, Gaurs Group, NCR has always played pivotal role in positioning real estate in the country.
“The recent positive figures for increase in prices of residential properties is directly related to the constant increase in demand and gradual decrease in unsold inventories and the trend is going to continue. With lesser new launches, the available stock has seen a major decrease,” Gaur said.
Regions like Greater Noida West, Noida, Yamuna Expressway etc have seen major upsurge in demand for housing which has been supported by factors like lower home loan rates, allocation of funds and an over all support by the current regime.
“The average price increase of residential properties in Gurgaon is a testimony of strong demand as homebuyers have undergone a change in their preferences due to Covid19 pandemic. The new demand pattern is now being driven by homebuyers’ need to accommodate ‘space’ for remote working, more outdoor open spaces, gated communities having state of amenities which will continue for a longer period of time,” said Ashok Kapur, Chairman, Krisumi Corporation.
“Dwarka Expressway in particular has an edge over other areas due to its proximity to key locations such as NH 8, industrial hubs of Neemrana and Manesar, and corporate hubs such as Cyber City, Golf Course Road,” Kapur added.
Source : ET