delhi residential property market overview -may 2015
TRANSCRIPT
In 1Q 2015, the prime residential market remained lack
luster and very few deals were concluded. In the primary
market few projects were launched by local level
developers in Dwarka, located at Delhi – Gurgaon border.
These projects were demanding INR 4,500 – 6,000 per
sq ft. A few redevelopment projects were also launched
in locations like Westend, Vasant Vihar and Jorbagh.
Apart from this, a few projects were also launched in
newly developing L-Zone under land pooling policy.
These projects include “Antrix Victorian County” by
Antariskh Developers, group housing projects by
Vaikunth Housing, Galaxy Group etc. These project have
started developing high interest levels among buyers due
to their affordable price range of INR 4,500 - 5,000 per sq
ft.
The prime lease market remained active and few lease
deals were concluded by various embassies like Israel,
U.S.A, South Africa, and Morocco. Apart from this few
occupiers from MNCs also took high valued apartments
in locations like Vasant Vihar, Malcha Marg, Westend,
Safdurjung Enclave and Jorbagh.
On a quarterly basis, capital values rose by 6 – 10% in
Prithviraj Road, Aurangzeb Road, Chanakya Puri, Golf
Links, Jor Bagh and Sunder Nagar micro markets,
however capital values decline in Panchashila, Anandlok,
Market Indicators
Relative to prior period 2014 2014 2015 2015F
Market Q3 Market Q4 Market Q1 Market Q2
CAPITAL RATE
NEW PROJECTS
CONSTRUCTION
RENTAL RATE
MICRO MARKETS CAPITAL VALUES
(INR PSF)
% CHANGE
QoQ YoY
Market Trends
Delhi | RESIDENTIAL
Niti Bagh, SDA, Greater Kailash I & II, South Extension,
Anand Niketan and Vasant Vihar in the range of 2 – 9%
QoQ. Shanti Niketan, Westend, Friends Colony and
Maharani Bagh were remained stable.
In a major policy change, DDA (Delhi Development
Authority) has revised and submitted, the Unified Building
Bylaws to the Ministry of Urban Development for
notification. The revised bylaws include mandatory
provisions for public washrooms in buildings, reduction in
the number of affidavits required for project sanctions to
50 per cent, simplification of fees structure for building
permits for different localities, provision of a grievance
redressal committee and guidelines for integration of art
in all public buildings. The draft also includes
modifications to approval plans, which include reducing
approval time to 30 days for plots measuring between
150 sq mts and 10,000 sq mts.
Colliers View
We anticipate a stable price scenario in Delhi, however
with an overall uplift in market sentiments buyers who
were delaying their decisions will start making a move
which will resulted in improvement in overall absorption.
Rents will remain under pressure and landlords will be
more accommodating in lease terms in order to retain
current tenants and secure new ones. Few premium
projects such as Capital Greens at Shivaji Marg, Kings
Court and Queen Court both at Greater Kailash II are
likely to be completed by end of 2015.
Copyright © 2015 Colliers International.
The information contained herein has been obtained from sources deemed
reliable. While every reasonable effort has been made to ensure its accuracy, we
cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are
encouraged to consult their professional advisors prior to acting on any of the
material contained in this report.
Colliers International (India)
Property Services Pvt. Ltd.
Technopolis Building, 1st Floor,
DLF Golf Course Road, Sector 54
TEL +91 124 456 7500
Senior Manager
Residential Services| Gurgaon
Average Capital Value Trends
Source: Colliers International India Research
Average Rental Values
National Director
Residential Services
Manager
Research Services
National Director
Valuation & Advisory
Services and Research
Director
Residential Services| India
Associate Director
Research Services