Property prices soften by 1% in Delhi-NCR: Report

NEW DELHI: Property prices fell by an average one per cent in the Delhi-NCR during October-December period compared with the previous quarter on higher supply, according to a report.

The average capital values in Noida, Greater Noida and Delhi dipped minimally by a per cent each. Gurgaon's housing market emerged as the worst-hit zone with a drop of 2 per cent in property prices in the last quarter of 2015 over the preceding one, as per the property portal 99acres.com.

While the demand-supply mismatch has long been impacting Delhi NCR's real estate sector, factors such as delay in completion of infra projects further worsened the situation.

The portal said that popular realty hubs such as Gurgaon and Noida continued suffering on account of unsold inventory, but Greater Noida stayed strong on availability of affordable homes and proximity to office space.

Commenting on the report, Narasimha Jayakumar, Chief Business Officer, 99acres.com, said, "Although Delhi NCR has a grim real estate story to narrate at present, the lethargy will be dispelled as soon as the market bottoms out."

The developers have already begun purchasing land parcels to build their inventory and are entering into JVs to improve liquidity, awaiting the opportune moment to launch projects when homebuyers re-enter the market, he added.

On outlook, the portal said that the Cabinet's approval of 20 amendments in the Real Estate (Regulation and Development) Bill may boost project deliveries and promote organised growth of the sector.