NCR promises boom in realty - An overview

Delhi is undergoing a facelift these days due to the rise of satellite townships, business avenues and various other infrastructural developments. The main aim behind this development is to make Delhi a global metropolis and also a world class smart city by the year 2021. The Government and the private sector are hand in glove to make Delhi a better place for which government has initiated Private Public Partnership ( PPP) model. The PPP model has been propagated to improve infrastructure actively as well as for development of the land in Delhi and along its national capital regions.

With the help of Delhi Development Authority the Delhi Master Plan 2021 aims at constructing 65,000 houses for the urban population in the coming next four years. Nevertheless, there is also a planned budget 2012-13 by the central government which would involves the private sector for cheaper housing which in turn would boost the development in NCR.

Infrastructural development and improved connectivity with better transportation will not only lead to concentric development of the capital city but also pave way for further investment in the Delhi NCR. Various highway and expressway projects like Yamuna expressway have not only made way for better connectivity but have also made way for real estate developments. Also, there was a stress on the Delhi-Mumbai Industrial Corridor by the Ministry of Finance for on the either side of Western Dedicated Rail Freight Corridor.

There is also in the pipeline the Eastern Dedicated Freight Corridor that would be intersecting the Western Freight Corridor in the Greater Noida thus making Greater Noida an important area of the NCR. Dedicated Freight Corridor Corporation (DFCC) and the U.P state Industrial Development Corporation (UPSIDC) on the initiation of the Government of Uttar Pradesh have already started the deliberations on developing the industrial and residential townships along these corridors.

In National Capital Region the development of residential areas is going hand to hand with the infrastructural development. However, in Noida and Greater Noida the infrastructure is being developed at a better pace where the facilities like metro, F1 track, night safari have already been developed or are under development whereas Faridabad and Gurgaon are still on the verge of infrastructural development which is slightly slow as compared to the residential development in these towns.

The growth of real estate will not only benefit public facilities but also safety, accessibility and connectivity all of which have the potential to boost mass housing schemes in new areas.

Since, this is just the beginning the IT sector has much more to offer being the largest occupant in excess of 200,000 square feet each across Gurgaon and Noida. More of such developments are expected in the fourth quarter of which 70% will comprise of IT across Noida and Gurgaon.

Gurgaon as of now is one of the most favourable location to cater to as compared to Noida and Greater Noida for commercial and residential developments. The maximum appreciation in the last one year was in Gurgaon and its adjoining areas. In some places property prices went up by around 50%. Even Dwarka Expressway saw a steep rise of 50% in the prices of recently-launched apartments. Many of the apartments that are still under construction were sold at Rs 3,000 per sqft in early 2011. Now the rate is Rs 4,500 per sq ft.

 

Some of the apartments in the area were launched at over Rs.6000 per sq ft. Similarly, the prices of apartments on Golf Course Road, Sohna Road, DLF City Phase V and Manesar appreciated by around 25% in the last one year. Apartments on Golf Course Road in Gurgaon are being quoted between Rs.11,000per sqft and Rs.12,000 per sq ft.

However, the most sensational performer in NCR region for 2012 was Dwarka Expressway with its close proximity to the international airport and the proposed diplomatic enclave, along with its rapidly evolving infrastructure and good connectivity with west Delhi and Gurgaon continues to work in this region’s favour. There was high level of interest by investors in this region, resulting in price appreciation and high sales volumes in 2012.

In addition to this, most of the projects launched in the last one year have been nearly sold out in all the micro markets like Noida, Gurgaon, Faridabad, Kundli, Sonipat,Dwarka etc. Looking at the current scenario developers are encouraged to launch premium products, like skyscrapers in Noida and Gurgaon, where the base prices have been pegged at around Rs 8,000 per sq ft.

In one of the latest survey it has been revealed that out of the top 13 cities, Noida – West (extension) in National Capital Region will generate the highest returns for residential real estate investors over the next five years. With all the action centred in Delhi NCR whether it is Dwarka Expressway, Noida Extention or Raj Nagar Extention; the expressways, national highways and the proposed metro networks are where all the property developments are taking place allowing good connectivity for the people.

People from all over the country are migrating continuously into the Delhi NCR to study, to explore new business avenues or for a job for further career advancement leading to exponential rise in the population of Delhi NCR. Thus, there is a huge requirement for residential, commercial as well as social infrastructure to cater to these increasing numbers.

Various projects are mushrooming along the Greater Noida, Noida Expressway, the Yamuna Expressway, the KPMG expressway, NH-24, NH-58, NH-8, NH-1, the Dwarka Expressway, Raj Nagar Extension at a very rapid pace thereby receiving favourable results with end users and investors as well.

The real estate sector is booming since last one year. Though it is carrying the apprehensions that the economic slowdown will impact the realty sector in the short to medium term, the residential sector is performing well in all the micro markets of the national capital region (NCR) of Delhi, so far.

Even the RBI's measure to increase interest rates to tackle inflation had not dampened the mood in the realty sector. The increase in interest rates, however, had led to slowdown in the economy. However the recent cuts in the interest rate and the provision of subvention in the housing loan up to 25 lakhs have boasted the sentiments of the realty sector.

Moreover, if much needed global economic recovery along with domestic economy comes to surface the future of realty sector is really bright in NCRs.