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29 February 2024

India's NCR property prices not likely to fall

By Parag Deulgaonkar

Property prices in the National Capital Region are not likely to collapse, but has witnessed a high appreciation as Dehli has no much land left for development, says a real estate developer.

“Delhi has limited land and so prices for prime locations remain high. It is not anywhere true that property prices are on the verge of  collapse. The rate of return is more than 100 per cent in our project (Lotus Boulevard),” Surpreet Suri, Director, The 3C Company, told Emirates 24/7.

“If your prime lands are going to be very expensive, then you got to move on to the next satellite city, Noida and Gurgaon… and that is where the upper middle class or middle class is going.”

The National Capital Region (NCR) in India is a name for the metropolitan area which encompasses the entire National Capital Territory of Delhi as well as urban areas ringing it in neighbouring states of Haryana, Uttar Pradesh and Rajasthan. With a total area of about 33,578 square kilometres, it is the world's second largest urban agglomeration.

Earlier this month, research firm Crisil said residential property prices in Mumbai are likely to fall by 10 per cent this year, but will rise marginally in the NCR. Mumbai and NCR would together account for more than half the 1.5 billion square feet housing sup ply planned in India's 10 leading cities up to 2013, it said.

The 3C Company, which focuses on delivering energy efficient buildings in the NCR, has launched Lotus 300, a high-end luxury project, with apartment priced from Rs17.5 million to Rs35 million.

“The project was 50 per cent sold at the time of launch. But we have now taken a conscious call and want to start the project big time and then get into marketing,” said Brijesh Bhanote, Senior Vice President – Sales and Marketing,The 3C Company.

Asked if NRI were investing in their projects, Suri said: “Middle East is a good market for us. There are a lot of people who are buying back home. About eight to nine per cent of our overall buyers are NRIs of which 30 to 35 per cent are from the UAE.”

The developer will also break ground for its Delh1, a $1 billion mixed-use development on the Delhi-Noida border, next month.

The project, which will cover an area of 3.8 billion square foot, will be completed in 2015.