Delhi residential real estate on fundamental track

Having reached their peak, the rentals rates of residential properties in Delhi are now falling in the stable territory. And that's quite reasonable too. House rentals unlike commercial cannot go up all the way. The price cycle had undergone a sustained increase for the past many months in Delhi and it is the time for a correction, in the general concourse. Meanwhile, the fundamentals are seemingly coming back in place and quite healthy signs are witnessed in the markets as far as renting a house in Delhi is concerned.

The update

Most of the activities in the housing segment took place in the South Delhi zone encompassing Vasant Vihar, Shanti Niketan, Westend, Anand Niketan and Central Delhi. The supply side was encouraging wherein as much as 2.5 lakh sq. ft of space was added to these locations in the period between April and June.

What is more encouraging is that these areas are quite strategically located near airport, embassies and Central Business District (CBD) of Connaught Place. The fresh addition in the capacity in the areas like Defense Colony, Panchsheel Park, and Anand Niketan would certainly release some pressure of spiraling demand.

The areas like Defense colony and Vasant Vihar are in fact becoming high profile with presence of foreign embassies and business conglomerates. Recently, US Embassy acquired space of 5,400 and 2,700 sq. ft in the areas of Defense Colony and Vasant Vihar, respectively, on lease. With this, the demand for renting luxury apartments, condominiums and villas is set to spike up in these locations.

What the future looks like?

Since, both capital and rental values have jumped to the skyrocketing levels in Delhi, the investors have to think twice before making any deals in the residential real estate.

The scenario is especially typical in the case of investor aspiring for buying a residential property in Delhi in consideration of rental income. Unlike commercial property, the rate of rental in housing segment remains far low and does not makes sense when one buys it the staggering capital values as existent today.

Here, investing in emerging areas makes sense as the cost of purchasing property is comparatively lower and the chances of exponential hike in prices are pretty higher than the saturated markets. Overall the markets are moving ahead right in tact, ruling out possibilities of any dramatic increments in the rental values, as of now.

Recent Major Deals

• US Embassy - Lease - 5,400 sq. ft Defense Colony
• Thales International - Lease - 4,500 sq. ft Defense Colony
• Alcatel - Lease - 3,000 sq. ft Vasant Vihar
• US Embassy - Lease - 2,700 sq. ft Vasant Vihar
• Vasant Vihar

residential properties in Delhi
Having reached their peak, the rentals rates of residential properties in Delhi are now falling in the stable territory. And that’s quite reasonable too.