Why Gurgaon is a better property destination than Noida

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.

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:

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.

Noida:

Noida also witnessed a slowdown in new launches in the first quarter of 2013 but, unlike Gurgaon, demand remained steady.

Noida is the most affordable city among tier I cities, but its absorption rate has remained subdued and unsold inventory continues to rise since year 2010, Bank of America Merrill Lynch says.

Home prices have remained depressed in Noida because of a large number of project launches, poor execution and tepid price appreciation. As a result, investors have fled the market.

Bank of America Merrill Lynch said the timely execution of projects will be the differentiating factor for Noida in the near future.

So, if you are an end user looking for affordable housing, Noida is a suitable destination. For those with deeper pockets, especially investors looking to make a quick buck, Gurgaon is the way to go.

source:- http://profit.ndtv.com/news/property/article-why-gurgaon-is-a-better-property-destination-than-noida-320498

Gurgaon, Noida property markets gain, Delhi loses ground

To beat the blues, builders in Delhi are attempting new initiatives like throwing in maintenance and facility management services. Despite all this, builders are wary of cutting prices just yet, fearing a crash

Suburban Delhi property market is seeing a lot of action, while the South Delhi market is reeling under pressure. Demand for projects in Gurgaon and Noida has risen on the back of better specifications and overall amenities, and often at the cost of central and south Delhi properties.

Delhi's posh Defence Colony, Vasant Vihar, New Friends Colony and Safdarjung are witnessing a slowdown in demand, with many new floors remaining vacant. To beat the blues, builders are attempting new initiatives like throwing in maintenance and facility management services. Despite all this, builders are wary of cutting prices just yet, fearing a crash. The correction is assumed to be largely on account of an increase in supply and general slowdown in the market.

The National Capital Region (NCR) is often called India's most speculative real estate market. Delhi's suburbs Noida and Gurgaon are seeing plenty of action, but at the cost of premium real estate in the capital. The focus is on the South Delhi property market that is reeling under immense pressure.

Also Read: Middle class chase elusive dream of buying affordable homes

Manish Aggarwal, ED, Cushman and Wakefield India, says, "Though the prices being quoted are stable, which is at par with what we had seen around a year back. However, because of low investor activity and the market being completely end-user driven right now, there is a discount on the offering should somebody want to negotiate."

There is demand for projects in Gurgaon and Noida as their specifications and overall amenities are much better. Rohan Sharma, senior manager research, Jones Lang LaSalle India, says,"Most of the investor money is now being driven towards Gurgaon and Noida, as these suburbs are offering much better projects in terms of specifications and overall amenities. So, there are a lot of luxury projects being launched in these parts."

Businessmen, High Networth Individual (HNIs) and expatriates are going slightly slow because the prices have become unviable for them in the long run in terms of the overall cost that they are coming at to them.

The property market is made up primarily of builder flats, which till sometime ago were trading north of Rs 7-10 crore a piece. This space is occupied not so much by established pan-India players, but more by local builders like Salcon, Uppal and Saluja.

What typically happens is a family or landowner enters into an agreement with one of these developers to develop what are commonly known as builder floors. The number of flats depends on the plot size.

Delhi's posh Defence Colony has seen a surge in builder floors. Brokers say flats on a smallish 217 square yard plot are being quoted for more than Rs 6 crore and in excess of Rs 7.5 crore for a ground floor apartment or the top floor with a terrace. Starting price of a flat on bigger plot size of 325 square yard is Rs 9-11 crore. However, dozens of these new floors are currently lying vacant for want of buyers.

The story is the same in Vasant Vihar where a recent deal saw prices touch Rs 20 crore for a floor on 600 square yard plot. However, that was after heavy bargaining. Brokers say the situation is tough. Even other South Delhi colonies like New Friends Colony and Safdarjung are seeing the pain.

However, builders are wary of cutting prices just yet, fearing a crash. The correction is largely on account of an increase in supply and general slowdown in the market. So if you're in the market, this is your chance to negotiate a better deal.

Aggarwal says, "There has been no price reduction in the offering. However, there are good discounts to be taken from the developers. This is the right time to do so. The discount would be in the range of 10-15 percent, depending on the property size and the location. This can be even further, however, one needs to negotiate."

To beat the blues, builders are attempting new initiatives like throwing in maintenance and facility management services. Earlier the maintenance wasn't a part of the package developers used to throw in. Aggarwal says, "Now, some of the more reputable developers are offering that as a package and at a price which does not have too much of profit margins for developers. However, because of the slowdown, they are offering this as a package along with a price which they are offering. It is an extra cost and usually the kind of service offerings are facility management, which include common area cleaning, maintenance of your power backup, if the developer is providing central air conditioning then he would also maintain that and sometimes even provide you with basic services of a plumber and electrician."

Prices have not budged in the last one year and Delhi's loss has been Gurgaon's and Noida's gain. Cushman & Wakefield notes Gurgaon has recorded a much higher price appreciation with prices in the luxury residential segment rising almost 29 percent year-on-year (YoY).

Aggarwal says, "The South Delhi areas, these apartments or builder flats can be compared to the likes of super premium developments that developers like DLF are offering and which are pretty much in the same price range, however, offering far better amenities and the finishing's are probably comparable or even better."

The property market in the commercial capital Mumbai at best can be called subdued. High unsold inventory and low deal activity has kept the prices stable. To drive up sales, developers are launching apartments with smaller configurations. The 80:20 payment scheme is also becoming more popular in the city. Mumbai-based Lodha Developers is attempting yet another initiative.

The company has pre-launched the third tower of its Grande Project in Thane. It is priced at Rs 8,883 per square foot or Rs 1.08 crore for a two BHK spread across 1,134 square feet. The catch, the price is only for the first 27 residences and the offer is open only for two days, the weekend of 22nd and 23rd June. There is no information on what the prices would be post the special offer, but details were not forthcoming.

Lodha is following a similar strategy for its other project Lodha Golf Links in Navi Mumbai's Kalyan-Shil Road. It is pre-launching a seven storey tower called the Ramana at its 30 acre 9-hole golf course.

This offer is only for the first 18 units the company sells and the booking amount is the same as Lodha's Grande project at Rs 1.08 crore. The project can be previewed only by invitation and if someone manages to make the cut, then Lodha is throwing in a three-year free membership with the purchase of a unit.

Other Mumbai developers too are coming out with similar schemes for soft launches. A few are even reducing prices of unsold inventory for a limited period of two to three days.

Interestingly, Saudi Arabia's Prince Al Waleed Bin Talal is giving a second shot to his dream of building the world's tallest tower at one mile or 1.6 kilometers. The Prince said he's in talks with Dubai's largest realty firm Emaar Properties to team up with his investment firm Kingdom Holdings for this project. However, there's nothing concrete on the table yet, including the location of the project.

The prince is inviting offers from all major cities from New York to London to Shanghai and is clear countries interested in hosting the world's tallest one mile high tower would have to offer tax breaks, financial incentives and all other necessary government support.

If this tower is indeed built, it will stand at double the height of the world's current tallest skyscraper, that's the Burj Khalifa at 828 meters in Dubai. If built, the skyscraper will also dwarf the one kilometer tall Kingdom Tower currently under construction in Saudi Arabia. The Kingdom Tower was initially conceptualized at 1.6 kilometer or one mile high, but plans had to be scaled back as the soil was not strong enough to support the prince's towering ambition.

source:- http://www.moneycontrol.com/news/real-estate/gurgaon-noida-property-markets-gain-delhi-loses-ground_905331.html