The Delhi Development Authority has planned to set up 16, 000 flats in the national capital. This decision of DDA will not affect the property markets of Noida, Gurgaon and Greater Noida. Experts claim that private developers provide better construction facility, maintenance, and luxuries than state-owned agencies. Also, the private developers offer high quality services to the consumers.
However, DDA’s housing plan can be proved as catalyst as claimed by some private developers. The reason as stated is – a sluggish NCR realty market, especially in Gurgaon, has been noticed that triggered demand from the users’ end.
Well, CBRE, the real-estate consulting firm, had opposed with the assessment. According to them, DDA flats in Vasant Kunj will consist of a high demand for its accessibility to the satellite city. DDA has taken an initiative to build over new 16, 585 flats in different places like – east Delhi, Vasant Kunj, Dwarka and Rohini. Amongst those flats, 33% will belong to high-income group (HIG) units. The price range for these 33% flats will vary between Rs.1-1.5 crore.
Demand of SPUR, Gurgaon:
Head for CBRE, Sivaramkrishnan has stated that the corporate people in Gurgaon prefer to stay close to their workplace. Hence, the residential market here is totally driven by them. Therefore, other micro-markets in NCR have faced less appreciation value as compared to the high-income properties in Gurgaon. This announcement will have good impact on Vasant Kunj or Gurgaon’s residential market that has good proximity to the commercial hub in Gurgaon.
President of National Real Estate Development Council, has agreed that 5, 000 HIG flats in Vasant Kunj is not a large number to affect the NCR property market. CMD of Raheja Developers, Navin Raheja has opined that demand in ‘sluggish Gurgaon market’ will get promoted, since potential buyers would compare two markets, based on location and price.
Superfluity of Apartments in Noida:
Over 70, 000 are ready to settle in flats in Noida and greater Noida, as claimed by Confederation of Real Estate Developers Association of India (CREDAI).
In the opinion of Amit Modi, Vice President, CREDAI, The Govt. is unable to offer the buyers with what they desire for. Hence, the DDA scheme will not have much impact on sales of apartments in Noida. Greater Noida flat prices are ranged between Rs. 2, 800/sq.ft. – 4, 000/sq.ft. or above, while prices for flats in Noida start at Rs. 4, 000/sq.ft.
In a nut shell, if the private developers in Noida offer a middle-income group flat at premium price to DDA, then it might affect sales. The impact, however, will be on those who want to purchase apartments only for investment purpose. The accessibility to the location of workplace might influence the choice of buyers, as stated by Udayvir Singh, real estate consultant, Noida.