Real estate in Delhi has looked up dramatically. In fact until the end of last year, no one could imagine that the property prices could swell to such an extent. The real estate sector in Delhi is practically booming. Nevertheless, Delhi, the capital city of the country has become a concrete jungle. Delhi and its adjoining areas- NCR, the National Capital Region is not behind either.
Factors that triggered growth in Real estate market in Delhi
There are few factors that can be held responsible for the growth of the real estate arena in this part of the country. Let us see what they are –
Foreign Direct Investment (FDI)
Real estate in the capital city has looked up ever since the Indian government has encouraged FDI or Foreign Direct Investment in the infrastructure sector aside from the real estate segment. The foreign investors are investing in this region with the expectation that the ROI or the Return on Investment will be high. Foreign investment by multinational companies has contributed immensely to the growth of the property market in Delhi.
Increase in Disposable Income
Aside from the FDI, there is another factor that has contributed to the growth of the property market. Until few months back, loans were extended in limited proportion. This holds true for residential as well as commercial loans. Lending institutions had adopted stringent measures so that they are not at a loss financially.
However, with the lenders loosening their strings a bit, investment in the property market is looking up again.
Commercial real estate in Delhi
Commercial real estate in the capital city has grown in leaps and bounds. As the need for office space increases, the demand increases too. Many multinational companies from abroad are opening offices in this region. And they need space for the same. In fact the shopping complexes were just a concept a couple of years ago. But it appears as if people cannot do without them these days. And these shopping malls require space for developing and expanding.
Residential real estate in Delhi
As new offices are operating in the city and its suburbs, residential real estate in Delhi has looked up too. There are many individuals who move to the city to seek job in the multinational companies that are opening here. As such they move to the city with their family. So, they either go for rented premises or buy an apartment. This explains why residential property is in demand. However, this is just one of the many factors.
Property Prices in Delhi
Shortage of residential as well as commercial space in the city and its adjoining areas has caused the property prices in the city to rise. Experts are of the opinion that this shortage is probably an artificial move by some of the city builders and developers. However, the reason is yet to be found out. Some are of the opinion that since prices are high, the property is not accessible and affordable by all. As such there are many houses that are waiting for buyers. This also indicates that the home sale has plunged as compared to before.
It is also being said that owing to the forthcoming 2010 Commonwealth Games, the realty market has skyrocketed. It is interesting to note that during recession, even if the real estate agents and property dealers were out of business, the prices of homes and commercial space didn’t touch its lowest price ever. The house and office space may have had no takers but the prices were not at an all time low.