09/02/2015
In Gurgaon, almost all major micro-markets have witnessed significant variations over the 2011 levels. Super-luxury residential price points have definitely corrected, currently being in the range of Rs. 23000-28000/sq.ft. as compared to the Rs. 30000-35000/sq.ft. range two years back. Premium / luxury projects in Gurgaon are currently priced between Rs. 12000-17000/sq.ft.
On Golf Course Road, normal apartments are currently priced in the range of Rs. 12000-16000/sq.ft. as compared to the price range of Rs. 8000-9000/sq.ft. two years ago. On MG Road, the current prices for residential apartments range from Rs. 10000-12000/sq.ft. as against an average of Rs. 8000-9000/sq. ft. in 2011.
Residential apartments on Golf Course Extension, which has a huge upcoming supply, are currently priced in the range of Rs. 8000-13000/sq.ft., while the corresponding figures two years back were Rs. 6000-9000/sq. ft. The current prices for apartments on Sohna Road range from Rs. 9000-9500/sq.ft., while the prices for comparableproperties in same location at beginning of 2011 were in the range of Rs. 7000-7500/sq.ft.
Apart from the traditional high-demand residential micro-markets, other locations that are emerging as promising destinations are the Southern Periphery and Dwarka Expressway.
Today, the Southern Periphery has properties priced in the range of Rs. 6000-7000/sq.ft. as against the price levels of Rs. 4500-5500/sq.ft. a couple of years back. Prices for properties on Dwarka Expressway are currently selling at rates ranging from Rs. 6000-8000/sq.ft. - this represents an appreciation of over 50% over the corresponding 2011 levels.
The Gurgaon residential market has currently stabilized, and there is no scope for any significant appreciation in the near term. Gurgaon has transformed to being an end-user driven market from an investor-driven market short-term speculators on the lookout for immediate capital gains have ceased to exist in this market.
On the other hand, the Southern Periphery essentially remains a hotbed as at the current price points, as it has the highest magnitude of affordable options. The proposed widening of Golf Course Road, the construction of the underpass and the proposed expressway will boost connectivity is further going to improve significantly. This will help improve sales to some extent.
Developers in the NCR region have been hit adversely due to the drop in residential prices at a time when they are running high inventory levels. Residential sales have picked up only marginally over the last three quarters.
Against this backdrop, boosting sales in the top-most priority for developers, who will use all means to cash in on the festive season. In this period, buyers can expect serious incentives and discounts. If the various offers currently being put out on the market do not elicit the required response, developers will be forced to reconsider their pricing.
