Realty sector turns the corner : Commonwealth Games Delhi 2010

Infrastructure development, fuelled by the upcoming Commonwealth Games, has ensured that Delhi is emerging as the most preferred real estate market in the country.
After a less than perfect start to 2009 — the global economic meltdown took its toll — the road to recovery has been quick and lucrative.

The experts agree: a report released by Ernst & Young in November listed Delhi as the “most preferred market” in India, followed closely by Mumbai.

Some of the factors that pushed Delhi to the coveted spot, as highlighted by the report, include massive improvements in infrastructure — a well-connected metro service, a modern International airport, road widening projects, new flyovers, underpasses, walkways and high capacity buses.

Another report by Pricewaterhouse Coopers and the Urban Land Institute has listed India as a top real estate investment market in Asia in 2010 with a particular focus on Delhi.

“In 2009, demand went down rapidly due to a variety of reasons including the political situation in the country and the global slowdown,” said Anuj Puri, Chairman and Country Head of Jones Lang LaSalle Meghraj. “Speculators, investors and end-users were not stepping out. Office space realty had come to a screeching halt. But certain measures introduced by the government helped markets recover their footing by October.”

While 2010 promises to be better, nervousness still abounds. “As prices rise, one of the challenges ahead will be to avoid the bubble scenario,” Puri said. “If prices continue to rise very rapidly, end-users may curb buying.”

While 2010 will be no 2007 — the golden year of the Capital’s real estate sector — it promises to bring increased spending by both investors and end-users. Experts hope affordable housing will be the mantra and office space market will pick up by the second quarter when multinationals intend to revitalise the outsourcing industry.

“The Games are a huge factor. The improved quality of life will certainly ensure greater stability and activity in the realty circuit,” Puri said.

Even the Delhi Development Authority, the Capital’s largest land owner, hopes that 2010 will bring better news. Attempts to sell commercial space in 2009 did not work out so well, but that may change. “We intend to put up shops and commercial units for sale in 2010. As far as housing goes, many units will be ready for allotment in the second half of the year,” a senior official said.

Courtesy - Indian Express