Can Gurgaon’s property market really pick up?

Hapless home buyers in Delhi NCR have a reason to cheer! Property prices in Gurgaon, which has witnessed one of the leanest sales in the past few years, is all set to pick up.

According to industry experts, while Gurgaon has the highest number of unsold inventory, 22,000 units of the overall 1,70,000 units in Delhi-NCR, things seems to be falling in place.

“Gurgaon is the hub of the service industry in NCR, and surrounding areas are becoming increasingly important in the manufacturing sector. The government’s 'Make In India' initiative will ensure more industries, and this will directly result in increased housing demand,” said Ashwinder Raj Singh, CEO of Residential Services, JLL India.

One must remember that several companies have now been shifting their base to Gurgaon or the outskirts of the satellite city as the commercial rentals in Delhi have skyrocketed.

Besides, RBI’s recent stance of no policy-cut will force the banks to pass on the previous rate cuts to the end consumer by lowering interest rates on the home loan.

Builders too would want to get rid of their unsold inventory, hence, the prices of the properties are expected to come down or be tagged with attractive discounts. However, the only challenge that comes to the mind is the fact that most of the new projects or unsold inventory lies in parts that are currently inhabitable.

But Singh feels that the commercial activity coupled with attractive discounts is bound to lure home buyers to the city’s real estate market. He also credited the Modi government’s policy reforms such as ease in FDI norms to boost the real estate market.

“Is it all wishful thinking? On the contrary - there is strong logic involved. The country's economic slowdown has troughed out, and the only way is up. The government has woken up to the fact that the real estate sector needs real help, and is making very favourable policy decisions. For a city like Gurgaon that needs only a small amount of stimulus to get up and running again, the winds of change are blowing strong. The changes will not happen overnight, but 2016 will bring visible progress on the ground,” he clarifies.

Well, while forecasts about the country’s key real estate markets can be done to the heart’s content, there is no denying the fact that Gurgaon is no more a developer’s market and the shots can only be called by the home buyers!