India’s largest urban agglomeration and the 2nd largest in the world, the National Capital Region or NCR had been one of the fastest growing realty hot spots in the country till about two years ago. It supports an ever increasing population and has been responsible for development of many equally important regions in the nearby states of Haryana, Rajasthan and Uttar Pradesh. Evidently, NCR has been a tough market to interpret with a number of different regions projecting various trends from time to time.
A recent in depth survey conducted by IndiaProperty.com throws light on the many aspects of the real estate market in the National Capital Region. According to the survey almost 82% of respondents purchased property in the region for end use. The other 18% have purchased as an investment option. Evidently the year 2014 saw a number of new home buyers in NCR. Affordable homes in many parts of NCR is one of the major drivers of the recent shift from paying rentals to paying EMIs. This trend will continue with the new government and its policy of promoting the growth of affordable housing sector in the country. However the number of first time home buyers will go down by close to 16% in 2015 and the purchase solely inclined towards investment will rise, indicates the survey.
Another interesting observation was that almost 55% of the respondents have purchased their second home in NCR. This is an indicator of the fast paced development happening in the region. It also indicates that home buyers have been extremely receptive to property purchase, although 2014 saw a slow patch for the real estate industry. This number is said to go up by 5% in 2015. Almost all the major metros like Mumbai, Hyderabad and Bangalore have witnessed a similar trajectory. Although apartments were a top choice for Delhi NCR folks to invest in, 2015 will see an increase in demand for individual homes by 8%.
Residents of Delhi NCR invest in property based on the infrastructure development in the region followed by the future prospects. Both 2014 and 2015, will see a lot of infrastructure development in top markets like Noida, Gurgaon, Ghaziabad and Greater Noida. When it comes to property purchase the track record of the builders and their reputation is of utmost importance to home buyers. NCR is the worst hit when it comes to delays in projects and this has resonated in the choice of home buyers, indicates the survey. Similarly property frauds are one of the biggest concerns amongst home buyers in Delhi NCR.
Buying decision has been strayed in all the metros of the country and Delhi is no exception. More than 40% of home buyers in Delhi NCR have taken more than 1 year to come to a decision considering many of their concerns. One of the reforms that encouraged the home buying decision in the region is the tax exemption on home loans. Mid segment and affordable housing has greatly benefited by this reform. As we start the year 2015, the buyers have only shown confidence in the policy and reforms charted out by the new government and this is said to benefit the real estate market across the National Capital Region.
Anupriya Dharma for IndiaProperty.com