Property prices in the first
three months of this year rose by 5.5% on a year earlier, the Central Bank has
found, on the basis of its survey of advertised prices. Prices also rose by
6.1% in the previous quarter. The increase in the overall property price index
over its year-ago level was primarily a result of developments in the market
for apartments, the bank said. Apartments in Noida saw an annual increase of
8.7%. The main reason behind this relatively strong growth was the increased
number of advertised up market properties in high value areas compared with
previous years.
The investment by Real Estate Investing firms was proposed
to be deployed in jointly developing 1.6 million square feet residential
property in India. Builders are already under cash pressure and have exhausted
bank borrowing limits and have started borrowing funds from common citizens
luring them with attractive returns of 1.5 % to 2 % interest per month. I am
not talking about small unknown builder, I am talking of reputed builders and
very close friends of mine have been approached for this.
New apartments in Noida like Supertech Eco village,
Supertech Oxford Square, DLF projects etc; have recreation facilities, basement
parking, security, power back up, good lawns and even swimming pools, all of
which are very difficult to get when one goes in for an individual plot.
Even now, a significant percentage of the buyers are genuine
buyers who intend to stay in the apartment they book. But when there is a
genuine demand, speculators can’t keep off.
If we see above, we could clearly see that there is a major
shortage of Supply of land stocks to match the demand created by the Apartment’s
lovers at the right place. Lack of Govt playing a crucial role in developing
right Housing projects has made all the Speculator players jump in and grab the
Land properties and then price it at sky high values for the migratory IT
population.
