Delhi-NCR real estate growing on development tides
National Capital Region (NCR) is stated to have the highest demand and growth potential for real estate in India. Indian real estate has a positive outlook for 2013 and Gurgaon and Noida lead the real estate front in the NCR. Many factors like infrastructure development, job opportunities created in the region, etc have contributed towards making the region the number one realty hub of India.
Infrastructure development pushing realty growth
Realty analysts have pointed out that localities like Dwarka Expressway, New Gurgaon-Manesar, Noida Extension and Noida Expressway in the NCR region have the highest potential for real estate growth in the coming future. The reason behind such speculation is that residential prices are yet to reach peak levels in those areas and prices are less compared to Delhi. The infrastructural development which is taking place in these areas is another reason for turning them into an investor’s as well as end user’s destination. Developers and government agencies are constructing roads, sports complex, malls, theaters, parks, etc in the region; as the infrastructural facilities are being developed in the region, it develops more potential for realty growth.
In the first quarter of financial year 2013, NCR has witnessed highest number of launches. NCR is estimated to draw a total demand of nearly 10.2 lakh residential units, 249 lakh sq ft of office space and 66.6 lakh sq ft of retail space by 2013.
With Reserve Bank of India (RBI) cutting down the repo rates; there is possibility of interest rates coming down and realtors expect that absorption rates of residential units would go up in NCR areas.
Of all the properties in Delhi NCR, properties in Gurgaon and Noida are the most sough after. Gurgaon and Noida boasts of excellent infrastructure – covering all spheres like connectivity, entertainment avenues, etc. Noida has many reputed malls like Centre Stage Mall, Great India Place, Sab Mall, Omaxe Arcade, Garden Galleria, etc. Residential sectors lying along side the Noida Expressway have immense residential demand and future development projects are set to boost the residential potential further.
Among future infrastructural development projects, first comes the proposed Metro link joining Noida and Greater Noida. Moreover, a 3.9 km line has been proposed between Kalindi Kunj and the Botanical Garden. Apart from these, another 6.6 km line is planned from Sector 32 to Sector 62 for better commuting purpose. To address the scarcity of drinking water in the area, authorities have come up with a plan to provide Ganga water to the residents at an estimated cost of Rs 87 crore.
To enhance the living experience, the new Master Plan for Noida has reserved 70% of the area for open spaces. Furthermore, the proposed economic zone along the Yamuna Expressway and the Export Promotion Zone hold potentiality for economic development for Noida.
Employment driving realty in NCR
Employment opportunities created in the region has played a big role in pushing forward the real estate growth. Delhi and NCR generated the highest job opportunities in the nation during the first two quarters of 2012. Of 2.7 lakh job opportunities created country wide during the two quarters, around 64,500 were created in NCR alone.
Of the total number of jobs created in NCR, IT and ITeS sector contribute most number of jobs. With more and more number of young professionals coming into the region, there is a growing demand for housing facilities. Among all the NCR cities, Gurgaon has a strong economic base with hordes of multinational companies (MNCs) having their offices in the area.
NRI demand pushes housing prices
Demand from Non Resident Indians (NRIs) is pushing the prices up in most of Delhi NCR localities. Gurgaon, Noida, Greater Noida, Sohna Road, Bhiwadi, KMP Expressway, Gurgoan Faridabad Road, etc have witnessed high housing demand from NRIs. As per reports, of all the realty transactions happened in 2012, 40% consisted of NRI transactions. Housing prices have gone up in NCR localities form Rs 2,500 per sq ft to Rs 5000 – 7000 per sq ft, owing to realty demand on the part of NRI buyers.
Expressways becoming the realty hotspots
National highways and Expressways are leading the realty front as they are pushing up the residential realty market in Delhi NCR. Expressways such as Dwarka Expressway, Noida Extension, Yamuna Expressway, Raj Nagar Extension, etc are high speed transport corridors and buyers can look for affordable residential options around them.
BPTP, Ramprastha, Indiabulls, Uppals, Raheja, Sobha, Chintels, Spire, etc are some of the prime developers who are coming up with projects in the 18 km stretch of Dwarka-Gurgaon Expressway. The average rate along the stretch is around Rs 3600 per sq ft. Raheja, Emaar MGF, Vatika, Godrej, Anantraj, etc are coming up projects along NH-8, which is turning out to be another realty hotspot. The average price rate here is around Rs 4200 per sq ft. Raj Nagar Extension in Ghaziabad is growing in similar ways as 20 odd developers are coming up in the area. It offers affordable housing options as one can buy a 3 BHK within Rs 40 lakh in the area.
The Expressways have excellent connectivity by road and metro networks connect them via existing and proposed connectivity. As many localities come under Haryana and Uttar Pradesh state governments, these state governments and the civic bodies under them like Haryana Urban Development Authority (HUDA), Noida Authority and Greater Noida Industrial Development Authority (GNIDA) are undertaking infrastructure development projects in these areas as well.
Developers like DLF are building own metro tracks in Gurgaon, which puts the onus on civic bodies like GNIDA and Noida Authority to step up development work. Now the twin cities of Noida and Greater Noida are proposed to be linked via metro networks built by the civic bodies of the respective cities. The total cost of Rs 1800 crore will be shared by the two civic bodies.
