According to recent analysis Gurgaon and Mumbai are the top grossing real estate markets in the entire country. Has it taken you by surprise that Gurgaon is competing with a mammoth market like Mumbai? Well the property price in Gurgaon today is sky high almost in comparison to the maximum city Mumbai.
With the BJP led alliance also emerging as a single most powerful parties in the states of Maharashtra and Haryana will also have a huge impact on the market prospects and this environment of speculation will definitely lead to price inflation in both markets. With this being said, Mumbai and Gurgaon are also the richest cities in the country with highest per capita income. With a high spend power among individuals in the city it is but obvious that the real estate market will tailor itself to cater to the needs of the elite. Today almost 50% of property for sale in Gurgaon falls under the luxury real estate category catering to a very small section of the population. "We are expecting correction in prices as monopoly of certain developers, especially in Gurgaon, is bound to end. Single-window clearance, a demand for long, is likely and so is land reforms.” said a top realty executive to the media.
The whole of NCR market has been facing a slow return phase for the past. But with the BJP led government promising home for all by 2022, builders have hopes for a correction in property prices in Gurgaon, Noida and other surrounding regions. Development will definitely scale up in the year 2015. According to Sanjay Dutt, MD of Cushman and Wakefield, “Mumbai suffered a lot in terms of approvals and costs added up. If a developer bought land for Rs 1,000 crore and paid 30 per cent interest, he had to shell out Rs 300 crore, which was included in the apartment prices."
Om Ahuja, CEO (Residential Services) at JLL India recently said to the media that “If the new government focuses on reducing land costs by increasing floor space index and transferable development rights (TDR), and launching a housing regulator, property prices will become affordable for the common man.” Sunil Rohokale, MD ASK group, says: "With a stable government in place, I think the speed with which decisions are taken will increase and if the real estate regulatory Bill, a pragmatic land Bill and fast approvals are introduced, the state (Maharashtra) does not need anything else."
With builders and industry experts heaving a sigh of relief, things are said to witness a balanced trend in the top of cities of Mumbai and Gurgaon. Currently property price in Gurgaon are still high and continue to remain so. However a few areas will see a good balance between demand and supply. With more ready to move in projects being in demand, it shows that home buyers are ready for their fresh round of investments in Gurgaon.
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