Nitin Nautial, 29, head of a startup in New Delhi, was shocked when he realised that a house for which he had been saving for years, is now out of his reach. He had plans to buy a two-bedroom apartment in Dwarka sector 10, on the outskirts of Delhi, but prices have gone up by 50% in two years.
As prices in metros begin to stagnate due to low demand, investors are moving to the outskirts for better returns, according to a report by real estate portal 99acres.com.
“I bought a Gurgaon apartment in 2009 at R3,000 per sq ft and was surprised to know that the asking price in the locality is now around R7,000,” a Mumbai-based head of a financial services firm, said.In NCR and Dwarka in Delhi, the prices have risen 64% in the last three years, and that in suburbs of Mumbai like Mira Road is around 50%, according to 99acres.com. Gurgaon, Noida and Ghaziabad witnessed 50%, 40% and 37% appreciation in the last three years.
“Real estate in metros is always attractive to buyers because of high returns,” said Vineet Singh, business head, 99acres.com.
Mumbai and New Delhi residential real estate prices have stagnated in the past year. “Prices in metros will stagnate for 12-18 months. So if there is no price correction, there would be time correction,” said Pankaj Kapoor, MD, Liases Foras, a real estate consultancy.