Friday, August 13, 2010

Is Delhi Real Estate leading to a Dubai-like over-supply driven by hype?

Most are thinking about where in India to actually invest in properties to have maximum returns. Though all the major Indian cities have seen an appreciation in the property prices, New Delhi, the capital of India has experienced the maximum rise in property prices. Hence, and contrary to common belief, the market shall become more unpredictable and dangerous for individual home owners or investors.

Property prices in and around New Delhi have increased many times within last few years. It's not that the property prices in New Delhi have suddenly seen a rise. Prices of property whether it be residential, commercial or industrial have been rising in New Delhi over the last few years.

And the reason behind this steady rise in property prices is the fact that being the capital of world's largest democracy, Delhi has always attracted people from all walks of life. And with Delhi being the host of Commonwealth Games to be held in 2010, considerable investments are being made by the public sector to improve the overall infrastructure. You may always wonder what will happen after this CWG 2010 hype is over and Delhi is left with real estate over-supply!

The government's positive attitude, transparent property laws and the great demand for housing and commercial establishments are attracting more people for making property investment than any other city in the region. This leaves other cities high & dry and makes Delhi congested and populated. The returns on the investment on the capital value of the property are among the highest in the world. And with the industry expanding rapidly, many are lured to not miss the opportunity and jumping-in?

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