The last three years have proven that the property market is not the steady-growth market. It is as fickle as investment in gold. One can focus on long term gains; but short term investments require a local insight. Different territories are governed by different trends.
Amongst all the cities in the country, perhaps the most volatile market is that of Gurgaon. The city comprises of pockets which are no less than dead investments. It also comprises of areas which are witnessing high growth.
This year, the property major DLF has suffered a major loss when it lost its footing in Gurgaon after it was banned from capital markets by Securities and Exchange Board of India. The property major was condemned in the city that it has been credited to have built. The consumer sentiments therefore have swayed against the organization which had long ago persuaded General Electric to setup its offices in the city.
Despite the fact that a major corporate has exited the market, investors have not lost confidence in the city. The realty major Hines is set to enter the property markets in a joint venture and will invest in many cities of the country including Gurgaon.
In addition, Indian companies like ATS Infrastrucutre, Tata Housing, Bhartiya Group and Anantraj Industrties already have made considerable investments in the city. This means that even after a major setback, there will be no dearth of demand in the city.
Those who plan to invest in new residential properties would do well bearing certain points in mind. There are numerous new and upcoming projects in Gurgaon but investment in any would not be a feasible idea. The following points would help a potential investor in making correct investment decisions.
Do not grab a cheap property immediately
If a good accommodation at a relatively inexpensive price is available, then it is bound to be accompanied by a “limited time” offer clause.
There is a reason why such offers are still available and why one should be careful when he/she comes across one. Gurgaon is perhaps the only territory which has witnessed a sharp contrast in prices within different localities. There are pockets where the demand is stupendously low and there are regions where it is atrociously high. It is important that a buyer knows which area is he/she is being given the offer in. Cheap accommodations available in low demand areas are not good for investment. Hence the “low price offer” is associated with them! It is vital to know the area.
Solar Panel Charge
According to a recent news piece, buyers might encounter a slight escalation in the prices of homes Sellers may included an additional cost for solar panels. Solar panels may become compulsory in the following year. The government is considering this as an alternative to the rampant power issues of the city.
Realty markets are witnessing normalization after their boom and subsequent slowdown. Gurgaon may have seen the worst this year, but it remains a sought after destination for investment.