What Knight Frank Report says about NCR Residential Market?

July 27, 2007	(3 votes, average: 4.33 out of 5)  Loading ...
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Despite the soaring interest rate on home loans, there is no decline in the demand of residential properties. Increasing urbanization, rising per capita income, growth in trend of nuclear families are some of the leading factors fuelling the housing prospects across the country.

The scenario led a multitude of real estate developers to announce their projects in different locations of NCR. But, the report by a leading real estate consultancy Knight Frank says something else. According to the data, the residential values across the country are likely to remain under pressure and some markets could also undergo major price corrections to the tune of 15-20% over the medium term.

Capital market values of land across NCR have already witnessed a correction of around 15%. Visualizing the prevailing trends, the developers have made a beeline to come up with their respective residential projects. Around 530.5 million sq ft of housing space would be developed in Grade A & B category in major cities. It would be accountable to about 2, 00,000 units per year in the MIG and HIG categories, but the major shortage of accommodation units exist in the low income group (LIG) and economically weaker section.

The NCR would see the supply of approx. 191.42 million sq ft. residential space by the year 2009-10. Of all the locations in NCR, IMT Manesar is believed to be the best planned destination which possesses great potential to be the next growth centre.

The report, however, hints towards the weak social and physical infrastructure of Gurgaon which is known to have leaded the realty development in other cities.

Then, there are other proposed exclusive infrastructure projects to add to the allure of Greater Noida. Yes! The report talks about the proposed airport at Jevar which will bring the twin city of Noida next to Manesar in terms of planning and development.

The Taj Expressway will be a matter of convenience for the people visiting the region. Its announcement has already raised the demand for residential property in the region.

There are several real estate projects to come up in the south-west part of NCR by 2009-10. The region includes Bhiwadi, Dharuhera, Rewari and Alwar. But , the area is experiencing the problem of poor physical and social infrastructure which has kept the demand for houses muted here.

Knight Frank Research has highlighted the factors such as increasing inflation, interest rate hike and Sebi’s stand on valuation of land bank which together clearly underlines a possibility of price correction in NCR property market in future.

News Published Under:   Real Estate Trends |