Real Estate Gurgaon

A lot of factors are driving the speculation in property, says Khaitan. "One, there is optimism, since it is the government which is promoting Rajarhat and inviting companies, especially in the IT sector, to set up offices there. Two, there is the proximity to Sector V [Kolkata's IT hub] and the airport. Three, there are the prosperous non-resident Bengalis who feel encouraged by the industrial resurgence of the east to buy property here. Four, a well-reputed developer. Then, of course, there are the rising income levels especially among young professionals who want to invest in real-estate for high returns."

It's the same scenario in Noida, Gurgaon, pockets of suburban Mumbai as also Ludhiana and Jalandhar in Punjab, reports Santosh Kumar, chief operating officer and director, TrammellCrowMeghraj. "The Gurgaon market, where property prices have appreciated 50-100 per cent, is 40 per cent speculator-60 per cent end user," a ratio, which, he says, "is acceptable".

While speculation may be good for image, in a sense, since it creates an illusion of demand and thereby helps escalate prices, not all developers look at it kindly.

Pradip Chopra, a Kolkata-based developer and secretary of the Bengal chapter of the Confederation of Real Estate Developers Association of India, feels that not only do they have the effect of driving away end-users, they may also be bad for a project in the long term because, having little involvement with a project, they may skimp on maintenance cost.

The other problem with speculation, of course, is that it cannot be sustained indefinitely without improvements in the larger economic scenario. And that's already happening in Rajarhat with prices at an all-time high, speculators like R J have already turned their attention elsewhere - the MIG developments in outlying areas like Garia, Behala, Madhyamgram and so on where appreciation in a six-month period has been highest.

Ironically, say realtors, it is these far-flung areas where the middle-class buyers, those who want a flat to stay in, were being pushed to by the sky-high prices within the city.

Source://rediff.com