Monday 25 May 2015

Rapid Urbanisation Creating New Spaces in Delhi-NCR Market



The industry observers and investors consent that the real estate sector is the biggest job producing sector and has outstanding infrastructure and reasonable property approval therefore it has assisted in increasing the investments in this sector. The sub-sectors including retail, commercials, hospitality and retail are developing as they are connected to industries that should increase the rate of employment and economic development. The real estate sector in India has been a varied sector of growth in the last decade. According to a report the growth of real estate sector in Delhi-NCR region begin in the year 2001 and end till 2010. The real estate investments increasing with rapid urbanisation due to explosion of nuclear families that are increasingly moving into apartments. The factors including FDI money and higher disposable income in several sectors like retail, manufacturing and services has also increased the growth. The NBFCs and Banks has also increased loaning that has directed to a more demand of real estate due to which developers began to provide discounts and schemes. The real estate segment of NCR displayed flexibility in the decelerated period. The prices of residential real estate are likely to grow due to limited supply of land coupled with increment in the construction cost. According to the Delhi Master Plan 2021, the population pressure is expected to move up from 18.2 million in 2011 to 19.9 million in 2016 and to 23 million in 2021. The population is predicted to increase up to 225 persons per hectare in the year 2021 simply for Delhi National Capital Territory as specified by the Delhi Master Plan 20121 from 112.97 persons per hectare for Delhi NCR as specified by the Census 2011. Therefore, demand is predicted to influence the micro market that should influence the price increment. According to International property consultancy Delhi NCR is the biggest urban agglomeration in India and second largest globally. 


The Delhi NCR market is attractive because it has an independent planning board that comprised to direction and channel flow of economic growth and development with spatially and balanced slanted ways. All three real estate sectors of Delhi-NCR including retail, residential and office are exhibiting growth due to suburban towns covering the major city. The drivers of market in these regions are significantly unexploited development possibility in these regions and considerable affordability and financial viability that provide both end-users and developers. NCR market has fared both in terms of launches and absorption in the wake of cautious consumer sentiments. The NCR market is striving for a better equilibrium and developers focusing on project completion and deferring new launches. The residential market of NCR demonstrates a careful viewpoint due to the retardation in both projects absorption and launches. Developers are experiencing the liquidity crisis due to restricted entree to both local and international funds significant for slowdown in construction action resulting in project delays. The confidence level of consumers has been spoiled due to increased interest rates, present economic outlook and inflation. A RICS India Commercial Property Survey articulates that response of the Indian occupier and investment real estate markets has been strike due to declining levels of growth in the economy, consistent drop the value of rupee, high retail inflation and subsequent rise in key policy rates.
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