Downtrends in Gurgaon Real Estate

Downtrends in Gurgaon Real Estate

by George Gonigal

Capital values weaken, rentals upbeat...

Residential properties in Gurgaon are expected to witness a marginal drop in capital values with fresh supply of about 1,000 new residential units in the next 3-6 months. Rentals, at the other end, are rising incessantly.

As per the recent report of Cushman & Wakefield, an international consultancy firm, capital prices at prime residential areas of Gurgaon have gone down by about 11-per cent between June and August 2007. Thus, the price trends in Gurgaon real estate are likely to be on the downslide at least for the next two quarters.

Meanwhile, the new residential projects in Gurgaon are witnessing sluggish trends and real estate developers are reportedly under pressure to cut prices in order to create demand.

Currents market trends

More than 50 per cent of the total residential supply in the Gurgaon property markets is targeted towards the middle income group, and the capital rates are in the range from Rs 2,500 to Rs 3,500 per sq. ft. Although prices of apartments at the prime residential areas of Gurgaon start from the levels of Rs 14,000 per sq. ft

Residential rentals in Gurgaon, at the other end, have risen by an average of 10 per cent in the past 6-months, said Ajay Nigam of Prime Properties. According to property brokers, rental values are increased by almost 30-35 per cent in the prime residential localities of DLF and Unitech.

Demand for quality accommodation, especially apartments in Gurgaon equipped with the facilities of 24 hrs power and water supply is ever-rising, owing to frequent power cuts in Gurgaon. Besides, a large number of people are settling in the city with boom in services sector and the income levels are also increasing.

With this, the trends in the residential rentals in Gurgaon would remain upbeat and live, as far as the demand is concerned.