The South Delhi Property Market
September 13, 2013 Leave a comment
Prices of homes in upscale South Delhi have dropped by 20 per cent-35 per cent over the last one year, with developers and cash-strapped investors offering big discounts to dispose off their assets in a slowing economy.
Till about six months ago, discounts on new homes in the area were being offering only by developers facing oversupply. But with the economic situation worsening, this category of sellers has expanded to include cash-strapped investors and businessmen who are keen to sell the high-end apartments they had picked up some years ago.Some people over leveraged themselves by buying multiple properties when the going was good. Now with the market slowing down, they are looking at exiting but are unable to find buyers,They have no option but to reduce their price expectations, hence profits.
The situation offers an opportune time for bargain hunters looking for distress sales.Those, who are in businesses that are in perpetual demand, are the ones lapping up these properties at great discounts. Read more of this post
Demand for rented homes has halved and rents are down by 25% in several popular residential localities in Mumbai, Delhi and Bangalore, as India Inc tightens housing budgets in its battle against economic slowdown. In Mumbai, rentals in marquee buildings like the sea-facing Haveli on Malabar Hill, NCPA Apartments at Nariman Point and Maker Towers at Cuffe Parade, where rentals range between 5.5 lakh and 12 lakh a month, are down by up to 30%. In Delhi’s Vasant Vihar, West End, Chanakyapuri, Shanti Niketan and farmhouses in Chattarpur and West End Greens,rentals have dropped 25% in the last one year. Rentals in apartment buildings in Bangalore neighbourhoods like Epsilon in Yemlur and Prestige Exotica on Cunningham Road are also down by 35% this year.Rents in Epsilon range between 7 lakh and 10 lakh. Corporate earnings have been subdued and no new expansions have been announced in the recent past. Companies are hiring less and also cutting down on perks such as rentals. 
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