Buying a house in Delhi is becoming a very expensive proposition and would be out of most people's reach in the next five years, a recent survey has predicted.
The survey conducted by real estate portal 99acres.com, along with UK-based market research firm YouGov, says the current average price of a house in Delhi is Rs. 1.93 crore. In the next five years, the average prices are projected to hit Rs. 3.27 crore - an increase of 69%. The findings are based on the sample size of 2,734 respondents, most of who were male and in the age bracket of 30-39 years.
Delhi is one of the most expensive cities to live in India, ahead of other metros such as Chennai, Bengaluru, Hyderabad and Kolkata. Also, Delhi is expected to witness even more appreciation of property prices in the next five years than these cities, the survey said. Property prices in Mumbai, however, are higher.
"The annual appreciation of property prices in Delhi is between 15 to 20% and the average property price should be around Rs. 2 crore," said Manish Mehta, vice-president of India Homes, a leading property brokerage firm. Mehta said with limited supply of housing units in Delhi, prices are only expected to go higher.
The survey also found that 45% buyers have to opt for second hand houses in Delhi, thanks to a limited number of new houses on offer.
"This is because the supply is largely of 'builder flat', which are built by removing old houses," Mehta said.
There is, however, hope in the form of the unlocking of peripheral land in Delhi for residential development. "Fresh supply of land is expected in areas such as Rohini extension, which should throw affordable housing in the low to mid segment," said Ramesh Menon, Director, Certes Realty.
"This will create more supply, leading to faster offtake in these areas compared to the more expensive south Delhi," he said.
The survey also found that 60% people live in apartments or flats and 35% people live in two-bedroom houses, followed by 28% people who live in three-bedroom houses. Interestingly, 40% of the respondents live with their parents, or at least have properties registered in their parent's name.