Property prices in Delhi-NCR increase 20% over last year

New Delhi: Delhi and the adjoining National Capital Region (NCR) has seen a 20 per cent rise in property prices over the past year, the highest among all metropolitan regions in the country, according to a report.

The highest growth was seen in Sector 112 of Gurgaon, where capital values rose 72 per cent in the first quarter of 2013 over the same quarter in 2012, said the report by 99acres.com, which has taken into account seven major cities across India.

In Delhi, the localities to see the highest rise were Vasundara Enclave and Sector 13, Dwarka, with around 28 per cent and 25 per cent appreciation, respectively, in the first quarter of 2013 when compared to 2012.

The seven cities covered in the report are Delhi-NCR, Mumbai, Kolkata, Chennai, Bangalore, Hyderabad and Pune.

After Delhi-NCR, Kolkata saw the highest appreciation in prices, at 17 per cent in the same period. The other metros seeing double-digit percentage growth in property prices were Mumbai, Bangalore, Pune and Hyderabad, with 12-15 per cent more in the first quarter, compared to last year.

The report also said the Indian real estate market in 2013 continued to grow, despite subdued GDP growth trends and economic conditions. A drop in home loan rates and a dip in domestic inflationary numbers has infused a sense of buoyancy among buyers.

Housing rentals in the Delhi-NCR rose eight per cent in the first quarter. The highest appreciation during this period was seen in Sector 44, Noida, and Sector 54, Gurgaon, with 70 per cent increase in rentals.

The property market in Delhi-NCR has been upbeat for a while and is expected to see a similar trend on account of low supply and huge latent demand. However, a few localities in South Delhi such as Saket, Vasant Vihar and Greater Kailash saw a price correction of six to eight per cent.

Vineet Singh, business head at 99acres.com, said: “While in Delhi, the prices are averaging or growing slowly, the NCR area is witnessing a price appreciation owing to increased movement of people preferring improved connectivity and affordable housing. The areas closer to Delhi like Sector 44, Noida and Sector 112, Gurgaon, are seeing appreciation in both sale and rentals.”