I truly believe that every Indian wants a home – It’s all about the roti kapra makan dream right? With a huge population and a middle class that is busting at the seams with increasing disposable income this is no longer a dream.
From a professional who is just entering the corporate world to the owner a company, everyone wants to buy a property in Gurgaon at different levels - some to secure their future and some to add to their never ending asset list.
Buying a home in Gurgaon is probably the single biggest financial decision that a working middle class professional takes in his life. Buying a home is not an easy decision. It not only involves a lot of time and effort in short-listing a prospective house but also involves a huge investment.
With real estate prices booming over the past 5 to 10 years in India, especially in cities like Gurgaon buying a house involves an investment that runs from Lakhs to a few Crores.
The year that has been – 2011:
2011 has been a significant year for the Gurgaon Residential Real Estate Market in all aspects. Reality has seen a big boom with increasing:
a. Cost of Land in Gurgaon
b. Cost of Construction Materials (Cement, Sand, Iron etc)
c. Cost of Loans (Rate of Interest)
d. Cost of Labor
Because of this four-fold pressure, and the increasing demand for housing in Gurgaon the cost of residential property has gone up significantly in 2011. We saw a growth of 25-45% in the first half of 2011. However, the looming world financial crisis, Eurozone problems and inflation have struck a dent in this growth towards the second half of 2011. On an average the prices in the second quarter have risen by 20-25% in the second quarter of 2011 in Gurgaon
Outlook for the year – 2012:
2012 started with a big bang and prices rose again in the first quarter of 2012. There was a flood of new projects that hit the market in Gurgaon and the frenzy of buying saw a spectacular first quarter. 2012 promises to be an exciting year and property prices (especially in residential properties) are expected to continue with the upward trend.
The following are some reasons why the residential property prices will head northwards:
1. Gurgaon is a big hub of the corporate giants. Corporate India earning the big bucks works in Gurgaon in extremely large numbers. So, there is a huge demand for housing be it high-end luxury to down right affordable housing in Gurgaon.
2. Growth in Tier II and Tier III Suburbs like Manesar, Bhiwandi, Faridabad and Dwarka Expressway is exponential as Gurgaon needs to grow.
3. Exodus from Delhi– People are moving to Gurgaon period. Reasons for the move are lower cost of living as compared to Delhi and cheaper housing in Gurgaon.
4. NH8, Faridabad link provide quick access to Delhi.
5. Loan Interest Rates have been altered by the RBI numerous times since 2012. To be exact, the RBI has changed it 13 times since March 2010. That is roughly once every two months and most of these have been a Northward Movement (Increase). But, over the past few months the rates haven’t changed much and experts forecast that the Interest rates are expected to have a Southward Movement (Decrease). A decrease in interest rates will ease the liquidity condition of not only buyers but also the builders. This will definitely help the housing demand.
Overall, the year 2012 is going to be an interesting and exciting year for the Residential Market in Gurgaon. If you are someone who has been wanting to buy a home “Now is the Time, my Friend”
Happy House Hunting!