New Delhi: Property prices in both the high-end and mid-end residential segments across New Delhi and its suburbs, Bangalore, Mumbai and Pune have stabilized in the second quarter, because of an availability of new supply, shrinking demand from investors and rising interest rates, according to a report by real estate consultant, Cushman and Wakefield.
In New Delhi, residential capital values in the high-end segment remained stable at between Rs21,000-54,000 per sq. ft depending on the location.
Price factor: Gurgaon’s high-end segment witnessed growth of 17% in the June quarter because of demand from senior executives. (Photograph by Harikrishna Katragadda / MINT)
Gurgaon’s high-end segment, however, witnessed substantial growth of 17% in the last quarter because of demand from senior executives.
In Gurgaon’s high-end residential market, prices of property are at between Rs6,500-11,000 per sq. ft, whereas it is at around Rs7,000 for the same segment in Noida.
“The current economic scenario and the volatile stock market situation have changed the outlook for investment options in this sector,” Aditi Vijayakar, director of residential services, Cushman and Wakefield, said.
“The market now is suited for long-term investors; more so for end-users rather than for investors looking at short-term capital gains.”
In the high-end residential segment in Mumbai, valuations remained stable at between Rs10,000-70,000 per sq. ft depending on the location, while in the mid-end residential market, it hovered between Rs8,250-35,000 per sq. ft.
In Bangalore, rentals remained stable. North Bangalore consisting of Hebbal, Bellary Road, etc., gained importance with the Bangalore International Airport at Devanahalli becoming operational.
An excess supply of all grades of developments, emergence of newer residential locations and the sudden shift in interest towards north Bangalore have impacted the eastern micromarkets where rentals have fallen by 4-11%
The quarter also saw developers being less aggressive on fresh project launches, with more focus on individual projects and increased amenities to generate buyer interest, the report said.