Delhi Prime Location Housing Prices Down up to 20%: JLL India

New Delhi: Housing prices in many prime colonies of the national capital have declined by up to 20 per cent since 2013 but the rates were stable in Gurgaon and Noida, according to property consultant JLL India.

The Delhi-NCR property market is currently "under stress" and offers attractive valuation for end-users, it said.

"Residential prices in established locations of South and Central Delhi such as Vasant Vihar, Defence Colony, Jor Bagh and Golf Links saw a decline of 15-20% in 2013 and remained at those levels in 2014," JLL India CEO-operations and international director Santhosh Kumar said in a report.

A correction in prices was also observed in areas like Westend, Shantiniketan, Prithviraj, Aurangzeb Road and Amrita Shergill Marg, but in a lower range of 10-15 per cent, he added.

"Unlike the slide observed in areas of Delhi, areas in Gurgaon and Noida saw prices remain stable at Rs 6,500-17,000 per sq ft (square foot) and Rs 5,500-8,000 per sq ft, respectively, in 2013. These areas remained stable at the above prices throughout 2014," Mr Kumar said.

The consultant said that buyers and investors could expect significant discounts from developers due to oversupply in Gurgaon and Noida markets.

In contrast to the negative market dynamics in areas of Delhi and stagnant prices in Gurgaon and Noida, JLL India said that the upcoming NCR investment locations like Neemrana, Sohna and Delhi's J and L zones saw an increase of 15-35 per cent over the same time period.

"Overall, the Delhi-NCR market is under stress, which means that valuations remain attractive for end users. This also points to opportunities for distress sales and bargain buys for investors/buyers," Mr Kumar said.

The consultant said that developers would be under greater duress by the festive season later this year, during which buyers/investors can expect good bargains. Mr Kumar advised buyers not to fall in the trap of waiting too long.

"If a project meets all their requirements, it is prudent to proceed with the purchase, as it does not take long for reversals to take place in the real estate market," he said.