Is There An Increase in Property Demand in Gurgaon and Noida?

property

The Delhi-NCR region is one of the most popular real estate investment areas in India. The area saw rapid development in 2012 to 2013 and buyer flocked to the area to invest in real estate. To cater to the incoming businesses and migrating workforce, the local government and Central government worked together to improve local infrastructure like roads, electricity, water, power-backups, etc.

However, land rates were so high that most properties in the area were too expensive for India’s middle class. Buyers moved in but too slowly and absorption levels were very low. Properties stagnated and by early 2014, sales tapered. One of the reasons for this is that election season was scheduled for January 2014. Buyers cancelled financial transactions until the new central government was in place and the new annual budget was announced.

Times Have Changed Post-Election

Yes, the election and the new budget have generated considerable interest in the real estate market. The Narendra Modi-led government is considered a progressive government that is more interested in pulling India and its economy into the future. The Central Government has also announced several interesting real estate policies that should make real estate investment profitable for investors, states Moneycontrol. A few of the most interesting moves by the government that should directly influence an increase in property demand in Gurgaon and Noida are as follows:

  • The Modi Government is committed to the infrastructural development of India. As a result, prestigious but vital projects like the DMIC (Delhi-Mumbai Industrial Corridor) and the DFC (Dedicated -Freight Corridor) will be pushed through and they will immediately improve the Gurgaon-Noida area.
  • The investment-savvy government could also lower lending rates for home loans. This could help first-time buyers invest in developing cities around Gurgaon and Noida.
  • Developers are also hoping that the Central Government will streamline and expedite the approvals granting process. This will speed up projects and put them on the market for sale much more quickly.
  • By opening up the investment market, builders and developers are expecting an increased availability of funds to start new projects. This will definitely revitalize the market and increase sales.
  • Modi has also announced a new affordable housing policy for every Indian citizen by 2025 and this means a $150 billion business opportunity for builders and homeowners.
  • The Modi-led government also opened alternative methods of funding for builders like REITs and these are expected to boost the real estate market considerably.

Builders and investors are also looking forward to the real estate market being granted “industry” status, states Myrealestate. This will ease fund flows for the builders and open up the range of properties available for first time private buyers and real estate investment firms states NDTV.

Investors Looking To Gurgaon and Noida Again

Yes, not surprisingly, interest has picked up in Gurgaon and Noida again as prime areas for investment. With great real estate policies in place, national and international investors are actively thinking about entering the Indian real estate market. In fact, Donald Trump has already entered the market by tying up with a Mumbai-based real estate firm. Industry watchers are expecting other international firms to follow him into India. Considering its proximity to Delhi, the country’s political capital, most international firms will prefer to invest in Gurgaon and Noida.

Investing in Gurgaon: Gurgaon is already seeing a demand for new homes even though there were very few new project launches in 2014. However, the lower inventory and increased investor interest has led to prices strengthening and stabilizing in the third quarter of 2014. Real estate biggies like the Unitech Group have already amped up their advertising and media drives to display their existing properties to investors and private buyers. According to the Bank of America, Gurgaon will continue to flourish as existing inventory and new launches are sold out to interested buyers.

Investing in Noida: Noida is not different says Economictimes. The city had experienced a slowdown in property sales due to the shaky economy. New projects launches have slowed down to the existing surplus properties available for sale. The good news is that property rates decreased due to the huge inventory of existing properties. For small buyers or first-time buyers, Noida is a great place to buy their first home or first property. However, for large investors who are looking for a rapidly developing local market, Gurgaon is far better as an investment option.

For First-Time Buyers

For small buyers, this is a good market, as there are now thousands of affordable properties available for sale in Gurgaon and Noida, states Economictimes. With an improving economy, government assistance, and better infrastructure, first-time buyers are assured of affordable property (that will increase in value) in the rapidly developing, central and popular areas of Gurgaon and Noida.

About Carson Derrow

My name is Carson Derrow I'm an entrepreneur, professional blogger, and marketer from Arkansas. I've been writing for startups and small businesses since 2012. I share the latest business news, tools, resources, and marketing tips to help startups and small businesses to grow their business.

Speak Your Mind

This site uses Akismet to reduce spam. Learn how your comment data is processed.