New Delhi real estate guide
Delhi is the second-largest city of India and with over 17 million people, the eighth largest metropolis in the world by population. One section of the city, the nation’s capital, is officially called New Delhi although the two terms are frequently used interchangeably. When India gained independence from British rule in 1947, New Delhi was declared its capital and seat of government. As such, New Delhi houses important offices of the federal government, including the Parliament of India.
Owing to the migration of people from across the country, Delhi has grown to be a cosmopolitan city. Its rapid development and urbanisation, coupled with the relatively high average income of its population, has transformed the city. Today Delhi is a major cultural, political, and commercial centre of India.
New Delhi real estate guide
New Delhi recently won a place on the list of the best places to invest in real estate in the Asia Pacific region in 2009 compiled by Urban Land Institute (ULI) and PricewaterhouseCoopers LLP. The ‘Emerging Trends in Real Estate Asia Pacific 2009′ report placed the city in the top 10 for the first time and some hoped it would become one of a select number of locations international investors put their money until the financial storm abates. 12 months ago, the city’s booming real estate market was drawing a host of international investors. However, real estate prices reached what many considered to be unaffordable levels and a correction now appears to be underway.
Tighter credit and construction oversupply, especially at the high end of the market, have combined with a slowing economy and the global crisis to hit the confidence of both domestic homebuyers and overseas investors.
Developers have been offering everything from free four wheel drives and gold bars to buyers, but without much success; residential transactions in New Delhi are down by around 50 per cent from a year ago, according to industry figures.
Another worry is the fact that the city has been the scene of militant attack on a number of occasions over recent years. In December 2001, the Parliament of India building in New Delhi was attacked by armed Kashmiri militants resulting in the death of six security personnel. It again witnessed terrorist attacks in October 2005 and September 2008 resulting in the deaths of 62 and 30 civilians respectively. Many believe that the attacks in Mumbai atrocities will also have a knock-on effect on security concerns in the capital.
The Indian government has fought back against faltering interest in the city and recently announced a five-year income tax holiday for new hotels and convention centres which start operations in and around Delhi up to March 2010. The move has led analysts Merrill Lynch to forecast national growth will grow from US$12 billion in 2005 to US$90 billion by 2015.
Condos in New Delhi
Despite the doom and gloom, New Delhi has witnessed a doubling of property prices over the past two years yet at present, used apartments for example cost around US$2,000 to US$3,000 per sqm – considerably less than prices in Mumbai. Mid-range condos in New Delhi might not initially appear to be the ideal investment for an overseas buyer. More on buying condos in New Delhi.
Houses and land in New Delhi
New Delhi is has a high population density and outside of its satellite towns, space is at a premium. As a result, land and houses are in extremely limited supply. The fact that New Delhi acts more as a business destination than a location for holidaying for overseas investors means condominiums are by far the most popular option with this category of buyer. India’s property investment laws can be quite restrictive and many foreign nationals buy on short leases and then apply for residency. However, a new visa limiting stays to 180 days may soon be introduced which would effectively end the practice. At present investor can buy through an Indian company structure but the loophole could also soon be closed by the Indian government. More on buying houses and land in New Delhi.
Renovating
Foreign nationals are only permitted to purchase new properties, which means renovation is not an option under normal circumstances.
Top tips for New Delhi property
Guide to buying condos in New Delhi
Guide to buying houses and land in New Delhi
