Gurugram real estate sees a revival after 5 years
The revival of confidence among buyers could lead to prices of residential and commercial properties in Gurugram increasing by as much as 10% to 20%. The market in Gurugram is now witnessing the positive effects of the implementation of Real Estate (Regulation and Development) Act, 2016 (RERA).
Bucking the trend in urban centres around the country, real estate in Gurugram is leading a revival of investor sentiment in the National Capital Region. One of the biggest reasons for this buoyancy, breaking a five-year dry spell, is strict implementation of the law, say experts.
The revival of confidence among buyers could lead to prices of residential and commercial properties in Gurugram increasing by as much as 10% to 20%.In the beginning of 2014, the real estate market in the National Capital Region (NCR) was witnessing a downward trend owing to multiple reasons – including a slowdown in the economy and lack of buyers’ faith in builders. This continued till 2018.
The market in Gurugram is now witnessing the positive effects of the implementation of Real Estate (Regulation and Development) Act, 2016 (RERA). In the last two months, construction of 20,000 new flats has started in the Millennium City, bringing in investments of Rs 3 lakh crore into the real estate business. “Earlier, developers used to take investors’ money and divert it to other projects. Such practices were widely prevalent before 2014.
Other home-buyers-After demonetisation, there was uncertainty over the projects and hence I did not invest my money to buy a home. When we realised after 2018 that the real estate market was coming back on track, I booked a 2BHK flat, slightly expensive by 2018 standards, in Sector 65 on Golf Course Extension Road.
Many more buyers are coming with us to force builders to complete projects, instead of wanting to get their money refunded. The laws of RERA have put builders in a position in which they cannot afford to delay their projects.
The Real Estate majors operating in Gurgaon are bullish about this revival. “Gurugram had been the favoured destination for mid and upper ticket size housing units. The presence of corporate offices has added to this. The demand for housing is not just sustainable, but is also increasing in spite of the market being slow.
As the market is becoming transparent and buyer trust returning, the banking sector, too, is reposing its faith in the segment. “Banks are coming forward to give loans for home and commercial purposes simply because they are now sure that the projects will be completed in time and therefore their money would get repaid in time,”.
In Gurugram, the realty investment hotspots are the areas where the Southern Peripheral Road and Northern Peripheral Road (as the Dwarka Expressway is also known) meet at NH-8 (sectors 99-112 and 37D, sectors 58-63, 68, 78-81, 84, and 85-86).
New Gurugram area will be the next residential hub” With the implementation of RERA and GST, it is easier for buyers to make their choices and invest in property wisely,”
Experts said that Gurugram will soon take a lead in affordable housing too since many projects are being launched in this segment.
“Affordable housing projects are also coming up across the city for low income group buyers. The maximum rate of these projects is Rs 4,000 per square feet. There are 45,000 properties in this segment near to completion or will be complete in next couple of years,”.