Where to Invest?

The property value has been increasing consistently in the Delhi and National Capital Region (NCR) since last 40 years. The appreciation has always been above the imagination of investors, for example you could buy a 2.5 acre farm house (approved and well built) in Ghitorni (south Delhi) area for less than 1.5 crores in 2004. Today you can not buy the same farm house for even 30 crores. So the property rates have inflated up to 20 times in the last 5-6 years. 

Similarly, you could buy a 192 yards floor in Shivalik (south Delhi's posh locality) for less than 30 lacs in 2003, today its capital value is much above that (Around 1.5 Cr). But as you can see in the above two examples that the increase in the value of farm lands is much more as compared to that of the Residential property. This is a very important thing to note, as the end user (the one who purchases the property for the sake of self use rather than investment) would be more than happy to see the above change. But you can calculate the benefit the investors have earned, who invested in the farm lands, plots and commercial properties. The increase in the value of residential property is between 5 to 10 times depending upon the locality etc. in the last 6 years, while the value of a commercial property has increased by 5 to 15 times in the same time period. The appreciation in the value of farm lands, plots and industrial properties has been unbelievably high in the last few years, it is between 10 to 100 times. In Gurgaon's rural areas the prices have gone up to 10 crore per acre from just 10 lacs per acre in many villages, in the last 6 years. So its evident that investors who opted the last three mentioned options gained highest as compared to the others.

The above examples show the change in the capital value or sale value of various kind of properties in Delhi NCR. If we talk about the rental values then the case is totally different. The rental value of various kind of properties has changed a lot but if we compare that to the increase in the capital values then we find in nominal. The rental values have gone up to 2 to 4 times in various areas, depending up on the property type and locality, facilities etc.