Real Estate Market In Delhi Is Going To See Better Time, Here Are The Reasons Why It Is So!

Well, well, well, property rates in Delhi is increasing like crazy and 2020 will only see the climbing ladder. If the latest reports are to be believed, Delhi globally ranked 9th in terms of growth in the prices of high-end property. More so, in second quarter of 2019, the capital ranked 10th in the global property consultant's survey. Also, Prime Global Cities Index, Knight Frank has noted that in areas such as Greater Kailash, Vasant Vihar, Anand Niketan, Defence Colony and Green Park of Delhi, the subjective average capital value of chief residential properties rose by 4.4% year-on-year to ₹33,511 per square feet during the quarter under review.

In Shishir Baijal, Chairman and Managing Director words, "While Delhi and Mumbai have moved up in their rankings, luxury home prices have remained stable in both the cities in the past three months. Delhi's prime residential market, which is characterised by its tight supply, had witnessed a growth of 4.4% in the March 2019 quarter." In this article, we have mentioned a few pointers that might lead to such a hike in real estate Delhi. Take a look”

• Property Prices Will Increase: In 2020, it will be very hard to find cheaper homes in the capital when one will actually go and hunt the property in town. The logic as per the scenario is also quite simple. Builders would be coping up with a stark liquidity crisis, reducing unit rates isn't much of an option. Moreover, it will be a time when there won’t be a lot of lenders who would be willing to grant loans, and hence, they can hardly be anticipated to play around with their only chance of getting liquidity.
• The consumer rights will be more protected now: It is expected that in 2020, the consumer rights will be more protected and all the credit goes to the real estate authorities that are bringing on positive change as the regulators of the market. Specifically talking about certain states like Maharashtra and Haryana, buyers can already see a change in the market as state RERAs force constructors to be unsoiled and transparent in their trades. Also, righteousness will be conveyed much faster than the regular judicial system.
• Home loan at a lower price: The signs of growth is sort of indefinite as the GDP growth is touching an over six-year low of 4.5 per cent in Q2 FY20. Apart from the fact that the 135 basis point (bps) reduction in rates through the course of 2019 by the banking regulator, Reserve Bank of India (RBI). On the other hand, all the banks have not been able to give all the benefit to the borrowers because of the stress level in their own liquidity issues. In addition to this, RBI is expected to lower policy rates in order to kick the demand and banks simultaneously might offer housing loans at a relatively lower rate in 2020.
• No project delays: It is also expected that in 2020, the developers may not delay the projects that they are working on. In case they delay the same, the builders will have to pay compensation to the buyers. This is the reason the commitment of early delivery of projects has come down at a drastic level. Consequently, the number of new launches would also decrease in the year to come.
• 2020 will be a good time to invest in property: If we calculate everything and even if we believe the latest reports, the housing loans are cheaper and the prices of the property are stable, making this phase to be the perfect time to invest in property in 2020.

We would like to conclude this article in Dinesh Jain’s words who happens to be the MD of Exotica Housing, “Small realtors with considerable unsold residential stock refrained from hiking the property prices as they feared customer aversion. On the other hand, credible players such as ATS, Godrej and Prateek, among others, who had limited unsold stock not only announced new projects but also increased the capital ‘asks’ by 8-10 percent during the calendar year 2019. For instance, ATS sold over 1,200 units across 2019 and hiked the property prices by Rs 400 per sq ft to Rs 4,400 per sq ft, while, Prateek increased the per square feet rate by up to Rs 300 across most of its projects.”