Don't get swayed away by freebies while buying real estate

Pallavee Dhaundiyal Panthry, ET Bureau Jun 5, 2011, 06.54am IST

Post recession many areas sprung up with claims to offer affordable homes and everyone hopped to grab the opportunity . Fixation with lesser prices was so high that no one enquired properly about the areas. "The only thing that prevailed and mattered was the prices. The buyer forgot to stick to the main rule of real estate investment , that is, enquire before investing. They did not enquire about the area, the land title, turned a blind eye to the surroundings and invested because everyone was investing" , says Dujender Bhardwaj, director , JMD Realty Pvt. Ltd.

Investing in real estate is one of the most valuable acquisitions that we make in our lives. But a mistake in the purchase can be a testing experience especially for those who dream for at least one home in life. So one must act smart and do proper homework before buying a property. Let's have a look at the areas in demand and current trends in the real estate industry so that you feel at ease while buying a property and get the most legally secure property.


Delhi has always been in demand but because of exorbitant property rates, people prefer to buy properties in NCR, which includes, Noida, Greater Noida, Indirapuram, Raj Nagar Extension, Gurgaon, Faridabad, Bhiwadi and Dharuhera. But as different parts of NCR cater to different segments of the market, it's difficult to make a comparison between areas, feels Getamber Anand, managing director, ATS Group and vice president, Credai. "Noida is currently witnessing a proliferation of budget housing whilst Gurgaon, having the headstart in real estate over other areas, has more midsegment and high-end offerings" , adds Anand

Different developers have different opinions. Basically, it's all about a buyer's need; he goes for what suits him the best in terms of his office, kids' school, parents, friends, markets and hospitals.

Prashant Solomon, joint managing director, Chintels India, says: "Gurgaon is the most in demand and in particular New Gurgaon, which is coming up on the Dwarka Expressway just a stone's throw from Terminal 3 of IGI, Dwarka and Palam Vihar. This is because of the fact that Gurgaon is an IT hub, which provides employment opportunities along with the best infrastructure in terms of schools, roads, housing societies and medical facilities. It is famous for its outsourcing and off shoring services that contribute the most towards the economy of Gurgaon."


Talking about property rates, there is a major difference between Delhi and NCR; even the rates within NCR vary from area to area. According to Solomon, "We have not seen much of construction happening in Delhi except for areas like Dwarka and it is still the most expensive option segment if compared to the NCR. However, the trend could change as more and more people begin to look for accommodation in Gurgaon, Noida, Indirapuram and other parts of the NCR." As far as the rates are concerned, in Delhi it varies from Rs 5,000 to Rs 1,50,000 per sq. ft. depending on location. In the NCR on the other hand, the rates could vary between Rs 2,500 to Rs 15,000 per sq. ft., again depending upon the location. In the NCR, the property rates are known to be the highest in Gurgaon and Noida, followed by Indirapuram, Faridabad, Meerut, Sohna, Bhiwadi and the like.

"From the last quarter, real estate industry is somehow feeling the heat, for Mumbai market showcased a dip by 10 per cent to 15 per cent. But the NCR market is stable except Noida. The rates went down almost 15 per cent due to Noida Extension and Bhatta Parsol issues" , informs Bhardwaj. Future Trends

According to Anand, "Over time, markets will respond to the market demand and adjust to the supplies accordingly. All the markets will have products across all the segments, though the relative weights may vary due to various micro-market conditions and factors."

He adds, "The real estate industry is evolving and is today institutionalised to a great extent. The developers are organised into effective trade bodies like CREDAI who are self-regulating their members.

The code of conduct initiated by CREDAI for their members is a step in this direction. If the customers are careful in choosing the developers and their particular projects, there should be at ease and not feel cheated at any stage."