Even in not so prime areas such as Chittaranjan Park, brokers say apartments that were quoting at Rs 2.4 crore are now available for Rs 1.8 crore. While piling up of inventory is a major culprit, the recent decision by the government to increase circle rates in the capital has also impacted sales. Buyers clearly have the upper hand, and are negotiating favorable payment terms of up to six months from the standard three months so far. Kumar of JLL India said many buyers and investors are waiting for further correction.
"Also, people do not have the kind of confidence on getting returns from real estate that they did earlier. That confidence is back in the securities market but not here," he said. As a result, a lot of residential apartments in areas such as Vasant Vihar, Defense Colony, Greater Kailash, New Friends Colony, Panchsheel Park and Gulmohar Park are lying vacant, increasing the stress. Some brokers say the situation is showing signs of improvement.
Mudassir Zaidi, national director — residential at real estate consultancy Knight Frank India, said that while the market is still slow, there is slight improvement since the new government has been sworn in. "Sellers were asking for unreasonable prices during the peak. Now both sellers and buyers are becoming more rational because of which deals are starting to happen," he said. Sunil Kapur of property broking firm KK Real Estate said that for many months it was hard to sell anything.
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