Developers and builders snapped up large tracts of land in the Gurgaon and Noida area and started developing them. This was in expectation of a property boom in 2013 as the market snapped back from the recession. Although commercial investment through investment firms increased, private buyers took their time in choosinga property. This was because there were so many projects available to choose from within the same price range. Buyers were looking for cost-effective homes in well developed or developing areas. Builders, who were struggling with high-interest loans, priced their properties in the high-to-mid-end range. This led directly to a drop in buyer interest levels. Demand for new homes began declining in 2012 and sales volumes dipped to 15 to 40 percent all over India, according to 99 Acres.
 
Inventory Increased And Prices Decreased

Buyers who were already leery of a shaky economy did not buy into high-end and mid-end properties. However, Business Today states that builders kept launching projects as they had invested money in these areas. They could either build or lose money.  The new projects were designed for the low-end market and they were spread out along the Dwaraka Expressway, New Gurgaon and Noida areas. Buyers were attracted to these areas, and sales picked up in early 2014, but the actual turnover did not pick up as much as was expected. In order to clear existing inventory, a few builders put a stop to all new projects. According to Business Standard, new developments decreased by between 38 percent and 59 percent with the highest drop of 59 percent seen in Noida. Only 5,994 units were started in July 2014, as compared to the impressive 14,797 units launched in July 2013.

The NCR region now has an inventory pile-up of about Rs 8,402 crore, with 303.66 million square feet of area available for buyers. The average price of a 1200 square footflat in the NCR area is now about Rs 75 lakh but as properties pile up, builders have started to lower prices to maintain their cash flow and to clear debts. For buyers, this will mean bigger flats, but at much lower rates.
 
Poor Economy And Shaky Political Market

Due to a shaky economy, 2012 -2013 was not a good time for the Indian real estate market. With voting around the corner, the real estate market went into stasis and prices froze. However, very good things are expected from the progressive Narendra Modi led government. The 2014 budget and new SOPs (Standard Operating Procedures) for the real estate market haveled to a surge of optimism from buyers and sellers. To revitalize the real estate market, the central government has also announced nw tax exemptions on interest rates.
 
Artificial Property Hike In Some Areas Of Gurgaon And Noida

Although the consensus is that property rates have fallen all over Gurgaon and Noida, a few areas are seeing an artificial price hike. One of the reasons for this price hike is the launch of new property developments. A few localities in Noida and Gurgaon are seeing a slight hike of property rates by 10 percent because of this continuing development, states 99 Acres. However, industry watchers are stating that this price hike will not last long. By the end of 2014, property rates will settle down, but they will not drop further.

Good News for Buyers: What Should You Do?

For buyers, this is a great time to invest in property. According to Business Today, the Indiangovernment has announced plans to further develop Tier II and Tier III citiesto help reduce the load on the larger cities. Prices in these areas could increase, meaningmore expensive properties in smaller cities that might notyet have adequate infrastructure. Compared to this, the NCR-Gurgaon area already has cheap and affordable property, like the new projects in Gurgaon by Unitech Group.

To push through these existing projects, builders are offering interesting freebies, discounts, and price reductions, according o Business Standard. As a result, a perceptive buyer can really find lovely properties anywhere in the NCR region, provided they do their research carefully. As buyer interest picks up, those lingering properties will sell fast, leading to a renewed interest in the area. With this trend, investment will pick up, hopefully resulting in a property boom by late 2015.