Gurgaon Real Estate Follows Nationwide Trends

By: George Gonigal

Gurgaon residential real estate markets are perhaps the one that actually reflects the nationwide trends. The overall transaction volume in real estate might have declined but good residential properties in a city are able to manage some appreciation in value, thus fetching some returns to the investors.

Take, for instance, the Eros-Grand Mansion that was launched in year 2004 with its apartments priced at Rs 3,400 per sq. ft jumped to Rs 5,300 per sq. ft in year 2006, generating returns of 26 per cent a year, settled at Rs 6,300 per sq. ft in 2007, recording 16.67 per cent return over the property value in the preceding year. Definitely, the appreciation in value was not as high as earlier but decent enough to keep the ball rolling, from the investor point of view.

Property values in Gurgaon have already gone up by several folds due to its booming local economies driven by IT and ITeS sector. According to Rajendra Parashar, a property dealer from Gurgaon, 'Demand for commercial and residential properties is likely to spike up in the next couple of years and the big real estate developers are launching several residential projects in the city because they are of a view that the property values in Gurgaon are going to increase sooner or later'.

The rental segment will be especially benefited as a large number of corporate executives, who would come to the city, would search for residential properties on rent. According to real estate experts, with such positive trends in markets, the residential property markets of Gurgaon are seen as vibrant one in the long term.

The volume of construction activities has remained in flow for the past several years and the slowdown in markets has not cast impact on market sentiments too heavily. Gurgaon city is the front runner as far as India's booming services sector is concerned, and therefore there is no reason we should look down for it, said a senior official of a Delhi-based real estate company.

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