The growth prospects and future outlook for the NCR region in 2011 – there has been a lot of activity in terms of sales and price rises on the residential property market during 2009-’10, but the activity levels have again come down of late. As far as commercial property is concerned, Noida and Gurgaon will remain a tenant’s markets in 2011 due to the abundant supply of projects. Some pockets in Gurgaon, such as MG Road, will favor landlords because of the subdued supply pipeline.
While we realize the limitations, reservations and uncertainties that have been following the wake of the property market, we know that the fundamentals that drive this industry in India are time-tested, resilient and extremely robust. Encouraged, as always, by our continued optimism, we once again hope that the Union Budget for 2011-2012 will give Indian Real Estate the break it deserves.
The RBI’s raising its lending rates will add to the stress already building up, and hasten the inevitable correction of at least 15-20% in the pricing of residential properties in the overheated central areas of these cities. This correction was previously expected to happen in 6-8 months.
According to our research, Gurgaon houses approximately 3,000 rooms in the branded luxury, upper upscale, upscale, midscale and economy categories. These rooms are spread across 27 hotels and serviced apartments. Approximately 29% of the supply is represented by luxury and upper upscale hotels. The tax holiday announced for midscale hotels in context of the Commonwealth Games 2010 further boosted the development activity in this segment across Delhi and NCR recently.