Industrial property prices in Gurgaon may have crashed by 40-50 per cent, if Friday’s auction of a 1,000 sq m plot, sold at Rs 24,100 per sq m, is any indication.
Things are not too different in the residential space. “Prices of residential property in Gurgaon have fallen by about 30-40 per cent in the last one year,” said Sachin Sandhir, MD, Royal Institute of Chartered Surveyers, a UK-based professional body of property professionals and surveyors, that set up its India office in November.
An unsuccessful bidder, who didn’t want to be quoted and was in the market for the past 12 months, said the prices of plots in the vicinity used to be as high as Rs 55,000 per sq m.
The plot in Infocity along National Highway 8 was auctioned by Debt Recovery Tribunal in Sector 33 of Gurgaon. Nine bidders participated in the auction.
“In this market even Rs 24,000 per sq m is a very good price,” said Rajesh Arora, vice chairman, Arora and Associate Realty, a large brokerage, adding the number of transactions has all but dried up.
“Prices for all type of properties, including residential, have been under pressure for almost one year now, more so in last three-four months,” said Sanjay Verma, executive MD (South Asia), Cushman and Wakefield, a real-estate
“In suburban markets, the pressure on property prices has been more,” Verma added.
But the price fall has not been uniform.
In developed sectors like the upmarket Sector 14, and DLF Phase I, II and III and Sushant Lok Phase I, property prices are said to have come down by about 8-10 per cent.
In developing sectors such as Sector 9, 9A, 27 and 45, and Sushant Lok Phase III, the prices are down by as much as 25 per cent, local brokers said.
“In Sector 55 (a developing sector), a plot was sold for about Rs 29,000 per sq yard in January 2008,” said Trilok Sharma, a Gurgaon-based property dealer.
“Now, the rate is about Rs 22,000 per sq yard (a fall of 24 per cent),” he added.