Capital values strengthening in New Delhi

KUALA LUMPUR: The residential property sector in New Delhi, Gurgaon and Noida in India are beginning to gain momentum as investors and end-users attracted by correcting values, return to the market, said Cushman & Wakefield in its 3Q 2009 National Capital Region (NCR) Residential Report.

There is also increase in leasing activities as evidenced by the 8% to 12% appreciation of rental values in the high-end residential locations of the NCR. Latent demand in the region has stabilized the rental value in suburban locations such as Gurgaon and Noida over the quarter, despite addition of new stock.

Following a sharp decline in the past few quarters, capital values have begun to strengthen and register marginal appreciation across most micromarkets. Cyclical demand with the festive season in the offing resulted in the strengthening of prices.

The report stated that the third quarter of 2009 saw heightened activity with the launch of new projects catering to the mid segment, resulting in price escalation. This is particularly true in Gurgaon and Noida, which registered the highest growth of 19% and 16% respectively during the quarter.

Cushman & Wakefield expects the rental and capital values in the mid segment to remain stable in the short term as they seem to have aligned with end user expectations. Developments in the high-end segment are anticipated to see further increase in values.in line with improving market sentiments.

Among the new project launches in 3Q are Kosmos Greens, Emerald Floors, The Grand Arch and Lotus Boulevard.