Patel Nagar realty profitable to investors though sales fall
Ghaziabad- The real estate scenario of Patel Nagar seems to be contradictious as the properties, mainly after the metro coming up, are gradually witnessing value appreciation while the number of property transactions are not increasing.
It has to be noted that though there is no scarcity of land to develop residential projects in Patel Nagar, developers are not likely to be launching more projects.
It is estimated that there are around 500 property dealers in Patel Nagar which creates more competition for properties in the area. As of now, a property with area of 500 sq ft is being sold for Rs 1 crore approximately. And commercial property is valued at around Rs 2.5 lakh to Rs 4.5 lakh per square feet.
Despite rising demand for properties, the supply of residential units is not being increased, observe market watchers. Following the ban on general power of attorney property sale in Delhi in 2011, the real estate brokering business moved swiftly towards south, resulting in lesser property deals.
As many properties in Delhi are not having all required property-related documents, sales have plunged further, said a realty broker. The deals have fallen to two or three in a month, he added.
The property agent alleged that currently, only 10 percent real estate transactions that are happening are involving actual customers while the remaining 90 percent are happening between financer to financer, which makes the market investor-driven than end-user driven.
For instance, an investor buys a property and keeps it until the value appreciates, and then sells it to another investor. And the flow goes on among many investors rising the cost of the property meanwhile. Though the number of actual sales is low in the area, investors are making money in this way.
Besides this, rental income has also become an important channel of income for real estate agents. The people looking for properties for rent are mainly students studying in nearby institutes like Bajirao IAS coaching institute and working professionals.
At present, a 2bhk apartment with 900 sq ft area would fetch a rent of around Rs 20,000 depending on other factors.
Since the brokering business is down, property dealers are doing regular day jobs keeping brokerage as part-time business. Even women in the families of property dealers have started businesses such as boutiques, beauty parlours, etc. The dealers believe that, in the near future, only the property prices will be increased and no other change will be observed in the market scenario.
Click here for related forum discussion
Related Real Estate News:
IREO Gurgaon Hills launched near Golf Course Road
Neharpar in Faridabad witnesses realty growth
Ghaziabad Metro extension paused for lack of funds
Image courtesy of phanlop88 at FreeDigitalPhotos.net
Commercial Property, Demand for properties, Ghaziabad, Properties in Delhi, properties in Patel Nagar, property agent, property dealers in Patel Nagar, Property Prices, Property transactions, property-related documents, real estate of Patel Nagar, Real estate transactions, residential projects in Patel Nagar, Scarcity of land, supply of residential units, value appreciation
[...] Patel Nagar realty profitable to investors though sales fall [...]