Property prices in Delhi-NCR rose 1 per cent in the April-June quarter as against the previous three-month period of the last fiscal despite subdued demand and huge unsold inventories, according to a realty survey.
"Delhi NCR's property market continued its snail-paced trajectory from Jan-March 2015 to April-June 2015 with an insignificant growth of 1 per cent in property prices," the portal said in a statement. It said that prices rose despite a huge inventory pile-up of 1.70 lakh units.
On Delhi market, the portal said property prices fell by 2 per cent in April-June 2015 as compared to previous quarter. "Property prices in South Delhi grew insignificantly, while that in North and West Delhi dropped by 5 per cent and 8 per cent, respectively. Dwarka's price graph declined by 4 per cent and East Delhi saw a stagnant real estate market," the statement said.
In Mehrauli, the prices went up by 7 per cent. "The upmarket neighbourhoods of Greater Kailash I and II clocked a surge of 6 per cent and 4 per cent, respectively, in the quarter ending June in comparison to the previous one," 99 acres.com said. Commenting on the report, 99acres.com Chief Business Officer Narasimha Jayakumar said although the market looks grim with snowballing unsold residential inventory, there is an increase in office space absorption by IT/ITeS and e-commerce firms. Higher office space leasing is expected to keep commercial and home rental markets of Noida and Gurgaon upbeat, he added.
As developers focused on offloading unsold inventory, there was a drop in the number of new launches in Delhi-NCR. "Rental market performed better than the capital one due to more office space absorption, particularly in Noida and Gurgaon. The expansion of the Delhi metro improved sentiments in certain pockets of the market, impacting the rental values more than capital prices," the statement said.