Possible Luxury Property Bargains on the Horizon with up to 20% Price Correction Predicted for India's Deluxe Real Estate Sector
Slowing demand for luxury real estate in the first quarter of 2008
The Indian economy has been growing at a blistering pace over the past few years and despite the worldwide credit crunch and the subprime meltdown in the US, the UN Economic and Social commission for Asia and the Pacific (UN-ESCAP) estimates that the Indian economy will continue to grow at 9% in 2008-09. This economic growth has brought much prosperity to the people. In fact the wealthy in India have even become wealthier and have adopted lifestyles which are similar to the lifestyles of the rich and famous the world over.
This has led to a spurt in the demand for luxury homes such as sprawling apartments or villas with amenities such as plunge pools, mini golf courses, terrace gardens etc. These swanky luxury abodes are usually priced from Rs.1crore upwards ($250,000) depending on the type of luxuries that have been included in the development and developers all over the country have rushed out to create such dwellings as they have higher profit margins than homes than cater primarily to the middle class.
However since December 2007 this demand for luxury housing has turned sluggish as the Indian stock market has followed global trends and has fallen nearly 30% from its December 2007 highs. The falling stock market has been accompanied by rising inflation and the hardening of interest rates as well. Analysts contend that if the current scenario continues and if the US economy does slip into a long and hard recession it is bound to affect the real estate sector in India to a certain extent and cause a price correction of almost 20% in this luxury segment, meaning there could be some good bargains to be had when the time comes.
So far developers of luxury real estate projects in India such as Omaxe, Unitech Ltd and Parsvanth are putting on a brave face and continuing with their projects unabated, as they seem to believe that this is just a temporary hiccup. They are of the opinion that the world economy will bounce back in the coming months and with this the demand for luxury real estate in India will once again be on the rise.
Some luxury Real Estate developments in Noida and Greater Noida worth keeping an eye on
The twin cities of Noida (which is an acronym for New Okhla Industrial Development Authority) and Greater Noida lie at a distance of just 14 kilometers from Connaught Place which is the epicenter of New Delhi. These twin cities are located in an area which is commonly called the National Capital Region (NCR ).
These twin cities are a preferred location for many of the truly deluxe developments in India. Before this region became a choice destination for luxury development the nearby the city of Gurgaon was the focus for much residential and commercial development.
However, development in Gurgaon was not planned at all and the township grew very haphazardly as result of which real estate growth is stagnant today.
The twin cities are better planned and have better civic amenities as well, such as well developed land, smooth wide roads, uninterrupted power supply, clean and safe drinking water and unfailing telephony. In fact Noida is commonly known as the industrial fairyland of India. Moreover the government of the state of Uttar Pradesh under whose jurisdiction, these twin cities fall is pushing hard to complete several infrastructural projects such as the international airport at Jewar and the 160 km long six lane Noida-Agra Taj Expressway under its Noida Master Plan 2021. This master plan also includes the development of special economic zones, hotels and commercial and residential complexes for all real estate segments.
Developers such as Omaxe, Unitech ltd and Parsvanth developers who specialize in opulent luxury developments and who see a tremendous growth potential in the area due to its increased connectivity with New Delhi have rushed to the area in order to launch their spectacular luxury developments.
However, if what the real estate pundits say is true, that this luxury segment is soon due for a 20% price correction, then now may be just the right time to keep an eye on these luxury world-class developments so you can seize the chance for a bargain should it materialize.
Omaxe Twin Towers at Noida
Delhi based premium developer Omaxe has invested more than 180 crores ($45,067,601) in the development of their Omaxe Twin Towers project in Noida. These towers will be amongst the tallest towers of the NCR region when they are completed.
The Omaxe Twin Towers have been designed by Australian architectural firm OIA and are located in a prime area in Noida called Sector 50, which has excellent facilities, including a golf course, good schools and world class hospitals. The Twin Towers offer a total of 140 airconditioned three-bedroom apartments with amenities like tennis courts, a wave pool, a landscaped central park, a swimming pool, a sunken garden, a yoga garden and a reflection lotus pond, a tea house, tree lined avenues and walkways, a high tech security system and a fire fighting system and even a manmade beach!
The current asking price is Rs. 1,11,80,000 ($279,919) for a three bedroom apartment with three terraces and a servant’s room while a larger penthouse apartment in this development will currently starts at Rs. 2,17,46,400 ($544,476). But keep your eyes peeled for any opportunities that may arise.
The Unitech Grande
The expansive Unitech Grande project is located along the Noida-Agra Expressway and includes towers in which apartments have their own personal plunge pools. The project has been designed by leading firms from the world of design and architecture such as Callison Inc, EDAW landscape artists, Lighting Design Alliance, RMJM, Greg Norman Design and others.
The amenities at the Unitech Grande include an exclusive golf club, over 100 acres of landscaped and theme gardens, a habitat center, fitness centers and clubs, an integrated sports complex with an indoor tennis court, medical and educational centers and a state of the art security system.
Residences at the Unitech Grande currently range from Rs. 1,56,88,000 ($392,789) for a three bedroom apartment to Rs. 2,57,00,200 ($643,470) for a four bedroom apartment.
The Unitech Grande is set to be completed and be ready for occupancy in 2010.
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