There has been a price correction in the Delhi NCR real estate prices. The price correction has been around 1% and even then it looks like it does not have a large number of buyers. It has been a trend from past many years where we see that homebuyers are keept away from the Delhi NCR real estate.
1. Slowdown and litigation problems:
The slowdown has taken its toll on the real estate market. Delhi NCR is probably the worst affected. It has been found that there are almost 25,000 unsold units here. There are several properties which are under development but some of them have problems like criminal proceedings, problems with clearance etc. This obviously has a negative impact on the real estate market of Delhi NCR. Residential property is the highest available property in Delhi NCR. The number of unsold units is so high that it has had an adverse effect on new projects and resulted in stalling of new projects.
2. Lack of policy implementation and infrastructure:
There is no doubt that the government has put forward several policies with regards to real estate. But these have not yet got implemented in the Delhi NCR region. As a result Delhi-NCR market is also getting affected. One of the most important factor that is considered while buying a property is its infrastructure. It is found that this part lacks good infrastructure which is again leading to a negative effect. Though there are plans to improvise the infrastructure of the area, it will take a while till the enhancement happens and policies get implemented.
There is no doubt that the government has put forward several policies with regards to real estate. But these have not yet got implemented in the Delhi NCR region. As a result Delhi-NCR market is also getting affected. One of the most important factor that is considered while buying a property is its infrastructure. It is found that this part lacks good infrastructure which is again leading to a negative effect. Though there are plans to improvise the infrastructure of the area, it will take a while till the enhancement happens and policies get implemented.
3. Disproportion in the demand and supply ratio:
One can see that there is a discrepancy in the demand and supply ratio. The residential apartments available in Gurgaon are 1/3rd of that in Delhi NCR. Due to various factors, there have been delays in new projects in the Delhi NCR region. To add to it there are a large number of ready-to-move in properties available in this region. So obviously people here are giving preference to the ready property. But these ready properties cannot take care of the huge demand. According to certain reports the demand for ready to move in homes is highest in Delhi-Gurgaon regions where as in places like Faridabad the 2 BHK and 3 BHK ready to move in properties are just too many. It has been found that most of the new projects focused mainly on ultra luxury category. But the demand is more for budget housing. This discrepancy is also affecting the market.
Despite property prices falling in a particular area if the consumer is not getting what he is looking for then the demand for the property will also be on the lower side. In case of Delhi NCR also then there is lack of facilities, delay in implementation of policies and such other factors which is keeping the buyer away from the place. With the problems of litigation and clearance, hovering on new projects the condition is deteriorating further. Hopefully, with developments in the future the picture of real estate in the area will also improve.
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