Look for growth areas

For people living in and around Delhi, the real estate market has not really seen major price differences.

Data from real estate consultants show that the market has been relatively stable. Areas that continue to be prime, like the Lutyens Zone, Chanakyapuri, Jor Bagh and Golf Links, which are usually driven by the expat community, continue to command high prices and are still a seller's market.

Prices in the Lutyens Zone, for instance, have hovered around the Rs 8,000 per sq ft mark - on an average - in the last eight quarters.

Similarly, Chanakyapuri has seen prices appreciate from Rs 8,800 per sq ft in the first quarter of 2001 to Rs 9,000 per sq ft in the last quarter of 2002. The areas to really look out for are Gurgaon and Noida.

Though Noida has not taken off as well as it was expected to, it is considered to be a better market to invest in than Gurgaon. Prices in Noida have moved from Rs 1,800 per sq ft in 1996-97 to Rs 2,700 per sq ft in 2001-02.

Says a real estate consultant: "We are seeing significant changes in the Gurgaon market. With a lot of businesses moving there, Delhi-ites are moving to Gurgaon to reside there rather than just purchase land for investment purposes."

The other advantage, point out real estate consultants, is that the Gurgaon market largely accepts 100 per cent cheque payments, which makes housing loans accessible. This is unlike the other parts of Delhi, where 50 per cent cash payments are routine.

"When buying flats, people should look at investing in areas where there are townships coming up - like, say, the areas being developed by the Ansals in Delhi or the Hiranandanis in Mumbai - rather than standalone buildings. The chances of seeing a price appreciation are higher in the long run with such places since they are backed by supporting infrastructure and amenities," says a Mumbai-based real estate consultant.

GETTING REAL

Be it the Delhi or Mumbai market, the thumb rule is to look out for growth areas, and within these growth areas, to pick out potential A grade properties. If you're working in the Gurgaon area, living there is now a better option due to better connectivity and development, but it will still be some time before the area is fully developed. Noida is another option, if you want to invest a relatively small amount. The prime areas will continue to be in a seller's market in the medium term, provided you have the funds to invest in these markets.