Investors Lock Residential Properties in Gurgaon

By: George Gonigal

The capital values of residential properties in most of the areas of Gurgaon have been reaching the point of saturation some way or the other. The investors who had purchased properties in consideration of exorbitant returns are now looking at corners.

According to the studies of MagicBricks, the capital values for 60 sq. yard residential plots in Gurgaon have risen from Rs 22 lakh to Rs 28 lakh in the past couple of years, and given these bullish trends in the markets, a large number of investors had purchased properties to get overnight gains. However, these properties are not exchanging hands as earlier, due to price-levels expected by the investors.



Prominent property dealers and real estate experts of the city corroborate the findings. 'The availability of residential properties in areas like DLF Phase 3 and DLF Phase 4 is suffering artificial scarcity. Almost, every land owner is expecting Rs 30-Rs 35 lakh for a 60 sq. yd piece of land, which is not realistic,' said Manohar Lal of Sai Properties.

Property markets in Gurgaon enjoyed an unprecedented boom in the period between 1998 and 2006, a period in which the city produced real estate developers like DLF and Unitech. In this period, the capital values of both commercial and residential properties in Gurgaon shot up like a rocket. A large number of people having ancestral property in the city turned multi-millionaires overnight, and the same happened with developers and investors who had anticipated the developments.

However, as the markets started taking the account of intrinsic value of Gurgaon Properties, blind property deals have stopped taking place, said SR Israni, a Gurgaon-based contractor. Market sources further informed that still a large number of property investors have locked their assets and are not entertaining offers on the prevailing capital values.

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