The booming Indian real estate market is no longer confined to big metros like Mumbai or Delhi but has spread into the erstwhile peripheral cities that have grown to become the new hub of Indian realty. The National Capital Region (NCR) holds the key to real estate growth in North India. Gurgaon, termed as the Millennium City and Faridabad, are two key regions which have attracted massive real estate development in the region in the past few years.
NCR is an urban agglomeration which includes, along with Delhi, cities in the neighbouring states of Haryana, Uttar Pradesh, Rajasthan and Uttarakhand. Both Gurgaon and Faridabad receive favours from investors due to excellent connectivity, proximity to Delhi, urban planning and employment opportunities created in the past decade. Some analysts have gone so far as to define India’s development saga along the rising skyline of NCR.
Gurgaon is one of the most noticeable outsourcing and offshoring centres in the world. Its proximity to Delhi and Indira Gandhi International Airport makes it a dream destination for developers, as it draws massive demand for residential as well as commercial development.
Big players like DLF, Emaar MGF, Aspire Realtors, Tata Housing, Unitech, CHD Developers, etc have strong presence in Gurgaon’s real estate sector. Realty players are coming up with more and more projects to tap the major flow of people moving into Gurgaon. Demand for residential property in Gurgaon can be witnessed from the fact that Godrej Properties has sold over one million sq. ft. of space in Gurgaon on a single day. Vatika City, launched by Vatika Group, which will be the largest ever group housing development in Gurgaon. Emerald Estate, The Grand Arch, Ireo Uptown, Raheja Sampada, Emerald Villas, etc are some of the coveted projects in Gurgaon.
The average price per sq. ft. as per July – September, 2012 in prominent localities are as follows:
Average price (Rs/ sq ft)
|DLF City Phase I||
|DLF City Phase V||
|Golf Course Extension Road||
|South City I||
Property prices in Gurgaon have increased sharply. On a quarter to quarter (Q to Q) basis, DLF City Phase apartment prices have gone up by 11 per cent, while along Gurgaon Faridabad Road and Golf Course Road prices have gone up by 10 per cent. Localities like Sector 50 have witnessed Q to Q price rise as high as 24 per cent. The rental values have also gone up in localities like Golf Course Extension Road and DLF City phase by 6 per cent and 4 per cent respectively.
Residential plot prices are also high in most of the prominent localities. The average price per square yard is around Rs 1,00,000 along Golf Course Road, Rs 63,000 along Dwarka Expresssway, Rs 1,50,000 in Sushant Lok I and Rs 70,000 along Sohna Road.
Urbanisation changed the picture of this erstwhile satellite town of Delhi. Cashing on massive urbanisation, DLF had bought farm lands owned by locals and started building housing societies. These societies, called ‘City Phases’ are the urban residential centres of Gurgaon. Gurgaon is home to lots of MNC’s, factories and offices and it has prompted major realty companies to come up with a range of projects to cater to the needs of the inflowing population – from high rise apartments and villas to mini cities.
Availability of world standard schools like Delhi Public School, Suncity School, Amity International and DAV Public School, as well as hospitals like Max Hospitals, Paras Hospitals, Ark Hospital, Apollo Clinic, etc. work as positive factors for Gurgaon. Gurgaon has the third highest number of malls in the country.
Gurgaon is located close to Indira Gandhi International Airport. It is only about 30 km away from New Delhi and is easily accessible to the national capital through both Gurgaon-Delhi Expressway and Delhi Metro. The Northern Peripheral Road or Dwarka Expressway is deemed to play a pivotal role in uplifting Gurgaon’s fortune. It acts as an alternate link road between Guragon and Delhi, and once completed, it will ease traffic on Delhi-Gurgaon Expressway to a certain extent.
Gurgaon is one of the most promising outsourcing centres in the world. It shelters the headquarters of many MNCs. Telecom giants like Bharti Airtel, Nokia, Motorola, Alcatel Lucent and Ericsson have their headquarters in Gurgaon. It is also home to MNCs like KPMG, McKinsey, Nestle, Deloitte, Genpact, etc.
It also shelters Maruti Suzuki and Hero Honda, the world’s biggest motor cycle company. Delhi-Mumbai Industrial Corridor (DMIC) holds promises in future for Gurgaon. Reliance Venture has also set up its Special Economic Zone (SEZ) in the area.
Although deemed to become one of the pivotal centres of the growing Indian economy, Gurgaon is not without faults. The civic issues related to electricity supply and water supply are not yet addressed properly. Power cuts remain an issue that needs to be combated and after the High Court put a ban on the use of ground water for construction activity, the real estate sector has found itself in a fix.
Faridabad is the largest city of Haryana and shares its boundaries with NCR. A recent study has projected this old industrial city as the country’s ‘City of the decade 2011-21 ‘. It is the economic hub of the North Indian state and has become the apple of many a realtor’s eyes due to its proximity to the national capital and its strategic location. Neharpar Area in Greater Faridabad is estimated to offer the most cost-effective option as compared to Noida, Gurgaon and other parts of Faridabad.
EROS group, Omaxe, Vipul, Piyush Group, Gold Souk, BPTP, SRS Group, etc have a strong presence in Faridabad realty sector. Royal Retreat, Parklands, Piyush Heights, Park Grendeura, etc are some of the coveted projects here.
The average price rates of the city’s prominent localities as per July – September, 2012, are as follows:
Average Price (Rs/sq ft)
|Sector – 70||
|Sector – 88||
|Sector – 82||
Price rise has been rapid in case of Faridabad. In case of multi-storey apartments, on a quarter to quarter (Q to Q) basis, there has been an increase of 8 per cent in Charmwood Village, 22 per cent in Sector – 82, 24 per cent in Sector – 87 and 10 per cent in Suraj Kund. Average prices of residential plots in prominent localities are also on the higher side. Residential plots in Neharpar cost about Rs 27,100 per sq yard. Prices are around Rs 17,000 in Palwal and Rs 41,520 in Sector – 85. However, unlike apartment prices, residential prices in many areas have seen a slump in recent times.
There is a huge prospect of economic boom in Faridabad in the near future which has attracted investors to the area. Stakeholders and policymakers agree on the fact that Faridabad must be transformed into a model town, which will be pushed into its ascent by meticulous urban planning. There is a possibility of immense growth in industrialization and the service delivery mechanism is expected to catch up.
Faridabad is home to hundreds of large-scale companies like Dee Development Engineers Limited, Lafarge, Shova, Imperial Auto Ltd., Birla VXL, Star Wire India Limited, JCB, Escorts, Yamaha, Knorr Bremse, ACE, ABB, GoodYear, ACC, IndianOil (R&D), Whirlpool, Havell’s, L&T, Mahindra Defence, Frick India Ltd., Orient Fans, Talbros, Bharat Gears, etc. Moreover, there are approximately 25,000 small scale industries in Faridabad. Apart from attracting large and medium scale industries, the future emphasis will be upon IT and ITeS industries.
Its proximity to Delhi is its main advantage. The National Highway-2 (Delhi-Mathura Road) passes through the city. Delhi-Faridabad Skyway of 4.4 km length, makes it an easier and minimal time consuming endeavour to commute between Delhi and Faridabad. New Delhi and Hazrat Nizamuddin Railway Station is about 25 km away from Faridabad Station and it falls on the Delhi-Mumbai broad gauge route. The Delhi Metro Rail Corporation (DMRC) is extending the metro rail service to the city as well, which will further boost the connectivity to the city.
Faridabad has witnessed major economic boom in the last decade. Infrastructural facilities have been developed to keep pace with the economic ascent. The government has been focusing on the development of the area and has strategically carried on ‘cluster development planning’. Government also has plans for an industrial model township (IMT) to boost the confidence of investors.
It has good schools like Apeejay School, Eicher School, Modern School, Delhi Public School, St. Thomas School, Carmel Convent, Saint Joseph’s Convent School, Tagore Academy, DAV Public School,Gita Bal Niketan, Bhagwan Sri Ram’s Academy, Modern Vidya Niketan, St. John’s School, Modern D.P.S., K.L. Mehta Dayanand, Gita Convent, etc.
YMCA University of Science and Technology, Lingaya’s university, Manav Rachna International University are some of the well known institutes for higher studies in the area.
Civic issues like water supply, availability of drinking water and electrical supply have distances to cover in Faridabad. In Greater Faridabad, the civic facilities are not yet fully developed unlike some of the other NCR areas. Crossings Republik has a proposed dumping ground, which can be an issue of concern for the area.
Here, we have tried to present an overview of prospects of both the NCR cities as a residential destination. Each of the cities has its own set of advantages as well as disadvantages. Potential buyers and investors may have their priorities marked out and need to judge the two real estate hubs based on different parameters.
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