Five years back, if you'd have talked about $2.5 million apartment in Gurgaon, near India's national capital Delhi, people would have put their fingers in mouth, but today it is reality. This cyber hub located in the northern part of India at the state of Haryana, is perhaps the city witnessing highest number of higher-end residential property projects in India, industry experts say.
As a matter of fact, as many as 10 mega higher-residential projects are under progress in Gurgaon real estate at different parts of city, and all of these projects are scheduled to be completed in between 2007 and 2009.
Slackening markets
The Gurgaon Real Estate markets are driven by investor, who is not willing to buy luxury houses, at current price levels, which hardly offer any room for growth and returns they expect.
Virtually, the property markets of Gurgaon are suffering from the oversupply, wherein real estate developers like DLF and Unitech have flooded the city with $1 million-$2.5 million apartments and penthouses, with projects like Aralias, Magnolias, Karma Lakelands and The World Spa.
Other majors like Emaar MGF and Parsvnath have also their pie in the segment with Palmsprings and Exotica, respectively.
What studies say?
The DTZ report confirms that the supply side has far exceeded the demand side and the margins over the sale of property are under pressure.
On this, the findings of Cushman & Wakefield, a consultancy firm, further bring things into perspective. Its reports say that housing properties in Gurgaon have overheated and prices have been touching the roof.
With this, the investors are not seeing the kind of returns that they had secured earlier from the deals, and that's why their interest in buying residential property in Gurgaon is comparatively lower than it was a couple of years ago, MP Singh of Silver Estates informed.
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