There is an upward trend in Gurgaon properties now and there is some apprehension among investors, property dealers, property owners and all others concerned that the market will slacken soon. In fact this widespread apprehension is not well founded on substantive and cogent reasoning. Since the onset of the slump in the property market over the last couple of years, the real estate prices in this region underwent a downward trend. But now the slump has almost come to an end and the real estate market is back in the saddle.
The average prices prevailing in the main centres of the city are like this: DLF Phase IV, apartments Rs.3000 to 7000 per square feet, builder flats 7000 to 8000 and plots 55000 to 70000. These figures were approximately 6% to 12% less about 8 months ago. Currently, in the South City, apartment rate per square feet is from 3500 to 8500, builder flats 3500 to 6000 and plots 11000 to 27000. The current trend in price was about 12% less about 10 months ago. However, in spite of this better appreciation in so short a period, the Gurgaon real estate scene is apprehensive about the sustainability of the prices.
However, industry experts and investment consultants are of the view that the current uptrend in Gurgaon properties is not likely to slacken soon. The basis for the said apprehension in the recent slump in property market was a natural fall out of the global economic meltdown which has had its toll across the continents. In consequence, a sizable majority of investors, builders, property owners and real estate consultants aver that the same situation will come back after a short respite. But this fear is out of place. There are other causative factors which can further lend a fillip to the property market in India as a whole in the coming years. First of all, the recent governmental initiatives will work as sustainable impetus to not only Gurgaon properties, but to the Indian real estate market as a whole.
The recent governmental notifications have features such as: (1) Urban Land (Ceiling and Regulation) Act, 1976 (ULCRA) repealed by increasingly larger number of states; (2) In case of integrated townships, the minimum area to be developed has been brought down to 25 acres from 100 acres; (3) 51 per cent FDI allowed in single-brand retail outlets and 100 per cent in cash-and-carry through the automatic route; (4) Full repatriation of original investment after three years; (5) Minimum capital investment for wholly-owned subsidiaries and joint ventures stands at US$ 10 million and US$ 5 million, respectively; and (6) 100 per cent FDI allowed in realty projects through the automatic route; etc.