'Gurgaon best for realty investment'

Preferred destination in NCR: Report

An industry body survey has found that Gurgaon has been preferred as the most attractive and emerging real estate investment destination in Delhi and the National Capital Region (NCR).

A survey of Delhi-NCR by PHD Research Bureau of PHD Chamber of Commerce and Industry found Millenium City Gurgaon as the first preference for real estate investment, followed by Delhi, Noida, Faridabad and Alwar.

Good transport connectivity, existence of employment opportunities and availability of social infrastructure including schools, colleges, hospitals, etc have made these destinations attractive for real estate investments, a spokesperson said.

According to the recent study, development of Metro rail has resulted in widening choices for investments in real estate near metro stations. The study revealed Metro construction has not only boosted investment sentiments, but has resulted in an increase in nearby property prices.

The survey found price is the most important factor while considering investment in real estate followed by construction quality, proximity to metro, gated community, brand name of the builder, corner plots, availability of loan, power and utilities, vaastu compliance, locality, legal payments, future prospects of the place and rent receivables.

The study stated that the source of information about real estate investment avenues is largely through personal contacts such as family members, relatives, friends, colleagues, etc.

Further, real estate brokers, agents or dealers, newspapers or magazines or hoardings and SMS alerts have also resulted in widening publicity of investment opportunities.

Gradually other means of marketing are also increasing for generating awareness and publicity regarding real estate projects such as online social networking, Internet, television, etc, said the study.

The key reason revealed in the survey for buying property in the Delhi-NCR region is residential purposes, followed by earning decent returns on investments, buying commercial space, rent or lease, retailing, gifting and warehousing, said the study.

The study highlighted the key factors affecting real estate investment sentiments which includes high rate of interest on loan followed by inflationary pressures in the economy, lack of demand and economic uncertainties.

Mahesh Gupta, president, PHD Chamber of Commerce and Industry, requested the Union government for a deduction of up to Rs 5 lakhs from the current level of Rs 2 lakhs for interest paid on a home loan on a self-occupied house while calculating the taxable income in the forthcoming Union Budget 2016-17 to give a boost to the demand in the housing sector.

Further, decelerating prices of international commodities such as crude oil, steel and cement can be capitalised to give a boost to the construction sector and to build a strong India, Gupta added.