Time ripe to buy in NCR

With a fall in real prices and a 50-basis point interest rate cut by the Reserve Bank of India, the time is ripe for home buyers in the National Capital Region (NCR) to take the plunge, says a Second Quarter report released by PropTiger.com, a digital real estate business, funded by News Corp.

The authorities, too, are pushing for increased home sales, as they have slashed land conversion rate to 10 per cent after approving the mixed land use policy. It was earlier at 25 per cent. This, too, might have a positive impact on the end-prices of property in the NCR, the report, named Realty Decoder-Q2'FY16, states. The report is released by PropTiger.com’s Data Labs division.

Property prices in Noida went down by 1.8 per cent in the past one year. While property prices in Gurgaon have remained stable. These have gone down in Bhiwadi by 0.1 per cent. Sohna is the only area in the NCR which has shown a price appreciation of over six per cent, according to the report.

The report shows the NCR has about 1,40,000 units in its unsold inventory, with ready-to-move-in homes forming about 1.5 per cent of it. While the overall inventory overhang of Gurgaon is 54 months, it is at 59 months in Noida. The report notes that Noida has the most-aged unsold inventory. Around 33 per cent of Noida inventory is over three years old. In Gurgaon, 22 per cent of the unsold inventory belongs to the over three-year-old category.

In general, developers are most comfortable, if they can sell around 60 per cent of a project during construction stages. “While the average nominal price decrease appears relatively low, in real terms there is a meaningful reduction in prices. Also, for genuine homebuyers, developers are offering rich discounts on a case-to-case basis,” said Dhruv Agarwala, Chief Executive Officer, PropTiger.com. —TNS

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