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Good times ahead for Delhi-NCR, Bangalore and Pune real estate

Rising inventory of unsold flats has led to price correction in Delhi-NCR property markets. Most of the units are under-construction leaving opportunity for new buyers to invest in.

The residential market of Delhi NCR has always been hot destination for mid-segment buyers as the city offers multiple options in the category of affordable homes to high-end luxury projects in entire NCR realty arena.

Since, the current property market is reeling under slow and sluggish growth, here we figure out which is the right segment in property to make investment. Happykeys analyses here the current scenario of realty market across the county.

In a recent report released by real estate consultancy firm JLL India – retail and commercial space are buzzing with many real estate activities while residential space is seeing less buyers. Delhi NCR market are flooded with huge inventories and there is a vast gap between supply and demand. Bangalore and Pune realty markets have emerged as new realty hotspot which will see price appreciation over time. Here’s few of the points highlighted by JLL India on how the market is moving and where is the gap between supply and demand of the housing units.

 Demand and supply Scenario for various property options:

Retail asset class: According to the report –  retail spaces, especially malls are experiencing healthy rate of takeoff and occupancy, just because of favourable policies that have boosted the market after three years of drought. Policies such as 100 per cent FDI in single brand retail, relaxation for multi brand retailers and revised Model Shop and Establishment Act (that allows shops to remain open 24X7) have attributed for the rise in space offtake. The demand for retail space has picked up really well but there is a shortage from supply side. Market stature is experiencing robust demand but not many new malls are being built.

Commercial space: When we look at the commercial market, the situation is more or less as same. In this segment also the market is going through very interesting curve where A-Grade commercial space again experiences a huge amount of inventory absorption and lacking by supply side. Investors can look in the commercial space as in the near future prices may go up.

Residential Space: The story for residential space is just opposite. If we look at Delhi NCR residential market – it has the highest number of unsold inventory in real estate with 250,000 units, followed by Mumbai metropolitan region at 98,000 units. New buyers can take the advantage of this situation and can bargain hard while closing the deal.

“Potential home hunters looking for homes should take full benefit of the present scenario and invest in properties as prices are stable at this point of time and interest rates are also less. Not only this, buyers may be able to get good discounts as developers have been trying to woo home buyers in order to pump up their sales,” says Deepak Kapoor, president, CREDAI Western UP.

 

Bangalore is probably the bright spot for investment

Bangalore has been always the star performer in terms of highest count of office space absorption. The city is too good for investment in residential projects also as investors still see a healthy price appreciation. Unlike the residential markets of Delhi, Noida and Gurgaon; Bangalore and Pune would be the two markets which would see a favourable price rise over a period of time.