Revival in the offing for NCR
Rohit Chaudhary, a software engineer working in Noida, bought a three-bedroom flat on the Greater Noida Expressway a couple of years back. For the last four months, he has been trying to sell it to meet a financial exigency. Despite trying his level best, he has not been able to find a buyer with a reasonable offer for his property.
Rohit is one of the many middle-income buyers who have invested in the real estate sector over the last three years, either in the form of land or flats around the National Capital Region, which, apart from Delhi, include Noida, Greater Noida, Ghaziabad, Gurgaon and Faridabad.
A sharp spurt in buyers targeting these areas had in the recent years pushed up the property prices, ultimately tapering off demand forthe area.
One of the major reasons for the fall in demand for property in these markets is the very high property rates prevalent in these areas forcing people to stay away from these properties expecting the prices in the area to correct. Also, there has been a lot of confusion of land acquisition in these areas adding to buying disinterest,” said RV Verma, chairman and managing director of National Housing Bank.
A Crisil report on real estate companies released on Friday also says that subdued demand, high construction costs and high interest rates have dented the earnings and return ratios of real estate companies in India over the past two years but projects a revival in the next financial year.
Crisil's analysis of 23 listed
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