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Ajita Shashidhar

In the national Capital, small apartment complexes appear to be more in demand than the larger condominiums with better infrastructure facilities.

NEW DELHI, July 14

HOME-SEEKERS at the higher end of the market in the national Capital are preferring ready-to-move-in and attractively priced builder apartments with plush interiors, Italian marble flooring, fully fitted kitchens and bathrooms.

These apartments are usually individual plotted housing developments, which have been converted into three to four dwelling units. "These apartments have become extremely popular among the high-end users compared to other accommodation. In terms of transaction activity, both the leasing and the purchase markets for these apartments have been fairly steady, although values have softened as a result of an increase in supply of stock over the last two years,'' says Mr Sanjay Verma, Executive Director, Cushman & Wakefield.

In fact, these small apartment complexes, according to Mr Verma, are more in demand than the larger condominiums with better infrastructure facilities.

``People are opting for builder apartments as they get a ready-to-move-in flat and it works out to be cost-effective too. Moreover, they are also relieved from the headache of running after Government officials for water and power connection,'' says Delhi-based developer, Mr Pankaj Pahwa, Managing Director, Pahwa Builders.

Mr Pahwa adds that most owners of plotted developments in South Delhi are approaching developers to raise apartments on their plots. "The land owners usually occupy a flat in the complex and are, therefore, exempted from property tax for the entire plot.'' Mr Tanaji Chakravarti, Head, India Property Research, feels that the demand for these builder apartments are restricted to a niche market, which consists of people who want to live in the heart of the city and don't mind paying a premium for it.

According to him, the demand for these builder apartments is fairly consistent, but at the same time there is a segment of people who prefer to dwell in suburbs such as Gurgaon.

``Property tax in Delhi is huge compared to Haryana, which has no property tax at all. Therefore, a large part of the middle-income group segment are opting for Gurgaon,'' says Mr Chakravarti.

"Not only does it work out cheaper, Gurgaon also offers them a large number of condominiums which are of international standards,'' he adds.

Mr Verma of Cushman and Wakefield agrees. "While Delhi remains a hot favourite with home seekers who want to live in the heart of the city or for its high address value, Gurgaon has become a highly attractive and competitive residential destination. Availability of far better quality accommodation at cheaper prices has encouraged individuals to relocate to Gurgaon,'' he said.

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