INRnews - Indian Real Estate News

Real estate services firm Cushman & Wakefield in a research report made these observations.

An INRnews analysis of the data indicates that property prices in prime areas of Delhi are off their peak prices in the second quarter of this year. Property prices in Gurgaon are up versus the second quarter. Current prices in Delhi & NCR are however still 40% to 80% up on the previous year. The attached chart shows capital values by locality.

According to Cushman & Wakefield, South Delhi continues to witness a rise in the leasing activity. Prime localities in South and Central Delhi such as Vasant Vihar, Shanti Niketan, Jor Bagh, Golf Links, etc. witnessed heavy demand for 'builder apartments' (newly developed low rise buildings) that increasingly constitute the new supply.

Developers are constantly improving building specifications to suit the quality conscious end-users. Whilst the demand for such apartments is largely lead by senior executives from multinational corporates, the rising preference for such upscale and glamorous apartments has also led diplomatic missions to review their policies of leasing only standalone old bungalows.

With the reduced focus on demolition of farmhouses, they once again witnessed interest from diplomats and expatriate families. They are popular alternatives for families seeking larger space for a better quality of life, if they are willing to travel an extra mile. This tenant profile traditionally prefers independent houses but due to sustained redevelopment and conversion of bungalows to 'builder apartments', there are limited options available. However, only when the authorities take a clear and long term stand on the issue of illegal developments, can one assess the future of this market segment.

Leasing activity continued to be buoyant in Gurgaon as well, with an increasing number of transactions both in the premium and midrange segments. Rental values, however, remained unaffected since the supply has kept pace with the active demand in this suburb. With newer buildings such as Uniworld City, Westend Heights, Trinity and Eldeco Mansionz getting completed, adequate supply is being added to the existing pool of properties in Gurgaon. When compared to older stock, apartments in these buildings offer better finish, provided either by the developers or the apartment owners.

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About Cushman & Wakefield

Cushman & Wakefield is the world’s pre-eminent real estate services firm. Founded in 1917, the firm has 192 offices in 58 countries around the globe, and more than 11,000 talented professionals. The firm delivers integrated solutions by actively advising, implementing and managing on behalf of landlords, tenants, and investors through every stage of the real estate process.  These solutions include helping clients to buy, sell, finance, lease, and manage assets. Cushman & Wakefield also provides valuation advice, strategic planning and research, portfolio analysis, and site selection and space location assistance, among many other advisory services.