Real Estate Prices
in India increased
New Delhi, Feb. 28, 2005
In 2004 Delhi house prices rose about 60% while suburban
Mumbai witnessed price increase by 50%, real estate
consultants Cushman and Wakefield (C&W) reported.
The purchase of suburban property such as penthouses
increased in the Delhi regions Noida and Gurgaon with
an average price ranging from Rs 1.5 crore (about
$340,000) to Rs 4 crore (about $900,000). Strong land
investment has covered almost 70% of areas offered,
sometimes even before construction work began.
"Earlier, people preferred to put money only
after seeing the end product, but they are now willing
to invest even before the launch of a project, purely
based on developers’ track record," said
Sanjay Verma, joint managing director of C&W.
In areas like Prithiviraj road, Aurangzeb, Chanakyapuri,
Golf Links and Shanti Niketan in Delhi the capital
values vary between Rs 1 lakh (about $1,400) and Rs
1.5 lakh (about $2,100) per square yard, that constitutes
a 50% increase from a year ago. In Dwarka, Noida and
Sunder Nagar areas prices exceed 80% from the last
year indices.
"There has been a sudden increase in the number
of apartments in south Delhi. While the builder-apartments
are an accepted norm in the current market, it cannot
be denied that these multi-storied dwellings have
increased the pressure on infrastructure leading to
de-generation of south Delhi colonies," Verma
said.
Prices for Grade A prime property, especially large-sized,
increased reaching Rs 20,000 (about $280) per square
fit in South Mumbai.
