Gurgaon to have 10,000 luxury flats in 2 yrs

Now there's oversupply at the high end. In about 2 years Gurgaon will have 10,000 luxury flats. That’s projected oversupply of over 300 %.

DLF’s project Belaire will come up on this plot. Prices here are Rs 7500 a square foot or Rs 3 crore an apartment. Next to it, Emaar MGF will build palm springs apartments, priced at Rs 7,200 a square foot and Parsvnath has exotica under way on this adjacent plot, priced at Rs 6,500 a square foot.

Such luxury apartments, which cost Rs1.5 crore or more, will comprise about 30 % of residential supply in Gurgaon by 2010.

Gurgaon will have 10,000 luxury homes, up from 1500 in 2006. That’s 300 units added every month.

"The average absorption doesn't cross 200 - of these 200 - the demand for high end homes over a one crore is less than 50" says Ankur Srivastava, MD, DTZ

With limited demand for homes of over 2,000 sq feet, Gurgaon will have an oversupply of 300 % in about 2 years. Property consultants DTZ say the impact is evident. There has already been a price correction of upto 25% in the luxury homes segment.