Those with a fat budget can consider ongoing and upcoming high-rise projects
Many homebuyers would prefer to live in modern apartments, but moving to NCR is not an option
Delhi’s skyline could resemble Mumbai’s or Gurgaon’s in the not too distant future. While the concept of skyscrapers came to Mumbai way back in the ’70s, Delhi is only taking its first steps.
A handful of developers have launched upmarket high-rise apartment projects, equipped with modern amenities in Delhi (see graph) as of now, but a recent announcement by the Delhi Development Authority (DDA) is likely to boost the supply of such residential projects in the national capital. At a meeting headed by Lieutenant Governor of Delhi Anil Baijal last week, DDA approved the disposal of residential plots for group housing societies through e-auction to individuals, partnership firms, private and public limited or consortium, having the financial wherewithal to purchase the land and develop the project.
At present, among existing residential buildings in the city, DLF’s Capital Green in Moti Nagar and M2K Victoria Gardens at Azadpur are the tallest, both at 111 metres with 30 floors each.
Until now, homebuyers who prefer modern apartments over independent houses or builder floors and are willing to move out of Delhi head out to the National Capital Region (NCR), but that trend may change with the launch of new high-rise projects. Even amid the lull in the real estate market, there is some demand from the section who can afford it. Read on to know more.
Sanjay Tuli, 59, a businessman from Sadar Bazaar, a wholesale market in old Delhi, booked a 5,250-sq.ft apartment, consisting of five bedrooms, a hall and a kitchen in The Amaryllis, a residential project by Unity Group, a Delhi-based developer, when it was launched last year. The project is located in central Delhi’s Karol Bagh area and is close to Tuli’s business establishment.
“We always thought of living in high-rise building but had no options in the nearby locality. This project offered us what we were looking for like modern amenities and security for family and children," said Tuli. The project is expected to be delivered in the first quarter of 2020. Remember that given the liquidity crunch in the realty market, you should be cautious when investing in under-construction projects.
Like Tuli, a lot of homebuyers in Delhi would prefer to live in apartments with various modern facilities, but moving to NCR is not an option for them. “There’s no denying that Delhi remains a sought-after destination for aspiring homebuyers, especially since new inventory has been limited for many years. We have seen a revival in interest in Delhi’s luxury projects," said Mani Rangarajan, group chief operating officer, Elara Technologies Pte Ltd, which owns property portals Housing.com, PropTiger.com, Makaan.com and Fastfox.com.
Mint went through the details of some of the new projects and found that most of them are offering amenities like swimming pool, gym, spa, tennis court, children’s play area, jogging track and so on. The apartments are also accoutred with human sensors and gadgets to control temperature and light, among other facilities.
The facilities are aimed at attracting high networth buyers. “These are meant for industrialists, business honchos, NRIs who want a luxurious home in south Delhi, in many cases, those who earlier lived in farm houses but now find maintaining the same a problem. The appeal of community living is also a positive factor which draws buyers towards projects like King’s Court (only nine out of 57 units are vacant in the project," said Akash Ohri, senior executive director, DLF Home Developers Ltd.
“Our customer is a Delhi-based resident who would not want to move away to NCR. Also, the major chunk of our customer base would be people who would want to live in a luxury gated community with all features facilities that can walk to them," said Li Qiongjia, director, Risland (North India), a Hong Kong-based multinational real estate conglomerate planning to launch Sky Mansion project in Chhattarpur, Delhi, in October.
To assuage concerns surrounding under-construction properties, most developers have launched the projects only after the completion of a significant part of construction. “We feel that the market is fast evolving towards ready-to-move-in and almost-ready-to move-in apartments. Customers today are ready to pay a premium if they see that the project is already under construction," said Kunal Behrani, vice-president, sales and marketing, Unity Group. Risland, too, has completed a significant part of the construction work on Sky Mansion. “We are at level 14 in terms of construction, which means about 40% structures has been completed," said Qiongjia.
While most of the upcoming or ongoing projects cost upwards of ₹3 crore, you will find some mid-segment projects in L-zone of Dwarka, a Delhi suburb. “L-zone, strategically located between Dwarka, Gurugram and IGI airport, was one of the preferred spots," said Anuj Puri, chairman, ANAROCK Property Consultants Pvt. Ltd. The firm’s research shows over 20,900 units in high-rise projects were launched in L-zone between 2013 till date in 2019, with maximum supply in the mid segment ( ₹40-80 lakh), said Puri. However, as many as 10,830 units are currently lying unsold and only 200 units have been completed, added Puri. “Because of delays in approvals from the government and DDA, the site has lost its attraction," said Honeyy Katiyal, founder, Investors Clinic, a Noida-based property brokerage firm.
What should you do?
Experts said since construction work on most of the upmarket projects launched has already started, they are relatively safer to buy. How the new DDA projects pan out is still to be seen. While a few of the DDA land parcels are situated in central Delhi, most of them are located in suburbs like Dwarka, Rohini, and so on. Overall, the new supply is unlikely to impact property prices, said Samantak Das, chief economist and head of research at JLL India, a real estate consultancy firm. “New projects will be able to command high prices only if they justify the price with amenities that will provide lifestyle change to homebuyers of Delhi, " said Das.
In terms of pricing, projects in Dwarka’s L-zone may be attractive for a larger section, but investment in the area may be risky and homebuyers need to be cautious. “Apart from being realistic about delivery timelines, buyers must do a background check on developers and ensure the project is Rera-registered and has a registration number," said Rangarajan.
However, experts said the market is still not conducive for investments in real estate—whether in Delhi or elsewhere.