Accommodation Times News Services
By Nikita Parekh
Delhi being the capital of the country is very important city in terms of economy, development and business opportunities. Top Bureaucrats, Administrators, Politicians reside there, nodal government agencies are established there and hence, Delhi has a strong and vibrant economy. Gross State Domestic Product (GSDP) at current prices has increased to 365726 crore, indicating a growth rate of 17.70 percent during 2012-13. According to Delhi Government statistics capital has highest per capita income in the country. Following the economic growth of the capital, its real estate market is also exploring.
Delhi also known as the National Capital Region (NTC) of India is the metro region of country. The political administration is been expanding beyond the National Capital Region of India (NCR) going nearly 27 million population of residents. Due to such growth Delhi NCR has become one of the most preferred locations for investments. Among the various investments options available Real Estate definitely is a safe game due to high rate of appreciation and periodical returns on investment.
National Capital Region (NCR) is spread over total area of around 34144 sq. km and consists of the NCT of Delhi along with select urban areas from the neighboring states of Haryana, Uttar Pradesh and Rajasthan. Among the various regions of NCR, Gurgaon in the south and Noida and Greater Noida in the east have emerged as the key micro-markets. Proximity to Delhi, availability of large land parcels, access to talent pool and enhanced connectivity by means of road and metro network have made these satellite towns preferred destinations for corporates to set up their offices, driving the real estate activity in these regions.
As per a recent research by, ICRA, (Investment Information and Credit Rating Agency of India Limited), Population migration to the capital is the major driver for real estate development in the region around New Delhi. Areas like Golf course road extension and new Gurgaon have remained the most active micro markets in Gurgaon witnessing maximum launches.
According to Mr. Rohit Inamdar, Senior Vice President, ICRA, “Following the weak macro-economic scenario resulting in subdued real estate demand and rising cost structure, both developers and buyers are taking a cautious approach. As per ICRA research, golf course road extension and new Gurgaon have remained the most active micro markets in Gurgaon witnessing maximum launches. The total area under development in the Gurgaon market stood at 66.11 million square feet (sqft) as on March 2014 end. Of the total area, about 40.7% was in the New Gurgaon region followed by 31.6% million sqft in the Golf Course Road Extension region. ICRA Research also estimates total unsold inventory in Gurgaon at 18.82 million sqft with 63% unsold inventory being in the Golf course road extension and New Gurgaon; commensurate with the surge in supply in these two regions in the backdrop of slowdown in real estate demand. . We believe in the near term, improvement in sales velocity will take precedence over new launches”
Gurgaon region has been subdivided into various ares Golf Course Road, Golf Course Road Extension, Sohna Road, Dwarka Expressway and New Gurgaon regions. The Golf Course Road and Sohna road markets are developed markets with product profile in mid to luxury segment, the other micro markets of Dwarka expressway, New Gurgaon and Golf Course Extension are still in developing stage. The Gurgaon micro market is also witnessing major infrastructure developments like development of Rapid Metro phase II, KMP expressway, Dwarka expressway, extension of metro line from Dwarka sector 21 to New Gurgaon region, etc which are expected to create a positive impact on the overall market scenario. Although there have been significant delays in completion of most of these infrastructure projects, the real estate market is expected to reap significant benefits post completion of these projects. Thus while price affordability relative to Delhi, proximity to Delhi and employment opportunities remain the major drivers, the overall development of the social and physical infrastructure in Gurgaon will remain a key determinant of future growth.
Noida is the another most important and rapidly growing region of NCR With good infrastructure, metro connectivity and good road network, real estate development in the Noida regions is picking up rapidly. This is important, since infrastructure development is the primary draw for buyers and investors into this area. Upcoming major projects like the Export Promotion Zones and Taj Economic Zone along the Yamuna Expressway are likely to push the economic development of this region, consequently giving a further boost to real estate development. In fact, the positive response from buyers and investors in Noida has now made this the preferred destination for launching new projects and expediting existing ones. All in all, Noida is beginning to emerge as one of the brightest stars in Delhi NCR real estate.
The growing pace of real estate market in Delhi NCR has led Delhi Development Authority (DDA) to construct more homes in the region. This year DDA launched its biggest housing scheme, where they had kept 25,034 flats on offer. Now Delhi Development Authority is planning to develop Narela as the new housing hub it is going to construct around 20,000 flats here over the next 2-3 years. While announcing the news DDA vice-chairperson Balvinder Kumar, said, “Narela is the most suitable and best location to construct homes, as land elsewhere in Delhi is already occupied. So we have decided to put in all efforts to exploit the options in developing Narela.”
The blooming realty market and the growing developments in the areas of the capital has attracted NRI investment. Delhi’s Real Estate market has become the huge rage in NRI (Non-Indian Residents) who are settled abroad every year contemplate about coming back need avenues to invest their huge earnings. If current market sources and statistics are seen it is been seen that lot of inquires are received from the large NRI base. Apart from major Delhi part NRIs are very keen in investing into NCR region such as Gurgaon, Noida, and KMP expressway, Ghaziabad, Noida Extension, Bhiwadi, Dwarka Expressway, Yamuna Expressway and Faridabad.
These extensions of Delhi are bound to give new investment opportunities because it is linked to Delhi Real Estate market and good returns ensured. If we see the tremendous growth on the expressway many residential projects are mushrooming specially in 108, 109, 106, sectors where maximum investments are observed for 2-3Bhk units somewhere between 60-80lakh. Prices are high as Rs 5000-7000 per sq ft for the high rise luxury projects but still it is on demand owing to the high rate of appreciation for long term as well as short term also.
Another great investment opportunity for NRIs is opening on Yamuna Expressway. Promising good more than 2800 units have been sold alone. Ample developments have been made by reputed developers. Sectors like 137, 143, 50, 113, and 117 have undergone an appreciation of approx 20-35%.
Market dynamics is changing constantly in Indian Real Estate and Delhi NCR region will take an upward mark in 2-3 years. According to the real estate experts this is the best time to invest in the Indian Real Estate.