Properties In Gurgaon To Cost More

Despite the low demand for property in the wake of the pandemic, DLF has promised a price hike. The realty major will increase the prices of its apartments in the housing projects by 4% despite the fact that the sales have been sluggish and there has been a slowdown in the market.

The realty major decided to increase the prices of its flats in one of its housing societies, Regal Gardens by INR 250 per sq. foot to INR 6500 per sq. foot from July 15. The country’s largest real estate developer had launched the Regal Gardens project that will have 516 apartments that is spread across 10 acres in March 2012. The initial cost was INR 4,750 per sq. foot where the construction is being done by Simplex Infrastructures.

The reason for the revision in the prices is that the project is in its advanced stage, and not only 10% of the total inventory remains to be sold. 90% of the homes have already been sold because of the structural work already being completed while the services and finishing work is in progress.

The immense slowdown in the market over the past 2-3 years has led to a liquidity crunch for the developers which has resulted in a significant delay of 7-8 years in some of the project completion. Gurgaon recently had the highest number of unsold units with the figures shooting up to 57,950 as of 2019 end, which is the highest unsold stock amongst the NAtional Capital Region (NCR). a hike will only worsen the situation in the area. The demand and supply in the market are currently tepid and the proposed hike could dampen the investor sentiments and end-user sentiments while negatively impacting the primary and secondary housing markets.