F1 and the real es­tate for­mula

F1 is not a short-term res­i­den­tial de­mand driver but a des­ti­na­tion play. It has brought on the map a re­mote area not con­sid­ered a part of an es­tab­lished de­vel­op­ment cor­ri­dor

HT Estates - - NEWS - Van­dana Ram­nani

The “or­ches­tral ca­coph­ony’ of beastly For­mula 1 ma­chines have ruled over Ya­muna Ex­press­way two times in a row now. There’s no doubt that the sport has led to large-scale ur­ban de­vel­op­ment in the area and also given a boost to res­i­den­tial real es­tate in the mid to the long term. This will con­tinue de­spite the F1 boss Bernie Ec­cle­stone re­cent an­nounce­ment that the In­dian Grand Prix may not be part of next year’s rac­ing cal­en­dar.

The F1 is a great an­chor for de­vel­op­ers as re­turns will not come from the event but out of the real es­tate mon­eti­sa­tion of the township. The im­pact is akin to the set­ting up of the Maruti fac­tory that brought thou­sands of peo­ple to Gur­gaon in the early ’90s. “The global event is an ex­cel­lent an­chor strat­egy to bring a far flung area not con­sid­ered part of an es­tab­lished de­vel­op­ment cor­ri­dor into the main­stream,” say real es­tate ex­perts.

Peo­ple have in­vested in the area with the long-term view of get­ting high re­turns over the years when the area is fully de­vel­oped and has re­alised its po­ten­tial. Take the case of Par­bir Singh, who is into car rental ser­vices and has in­vested in Su­pertech’s Up Coun­try project. He got in­ter­ested in in­vest­ing in the area soon af­ter he went to watch the first F1 race with his fam­ily in 2011. “I in­vested in a 3BHK apart­ment in the area be­cause of the great in­fra­struc­ture it of­fers. I bought an apart­ment on the 15th floor that has a view of the man­made beach in the com­plex, the Night Sa­fari and even the F1 track,” he says. “I’m hop­ing that once the project is com­plete, I’ll use my apart­ment as a guest house where my

clients, on their way to Agra, can en­joy the Night Sa­fari or the F1 event if it is on,” he says.

Stu­dios, ser­viced apart­ments etc are prod­ucts that will do well in the area once the lo­cal econ­omy de­vel­ops. In the case of Ya­muna Ex­press­way, there are other drivers such as the three univer­si­ties that are al­ready op­er­a­tional and oth­ers that are be­ing planned. Th­ese will go a long way in de­vel­op­ing this area’s po­ten­tial as an ed­u­ca­tion hub.

The real gains will emerge when the en­tire fa­cil­ity is de­vel­oped into a live, work and play en­vi­ron­ment, when it be­comes a des­ti­na­tion, say ex­perts.

The event is a great an­chor for de­vel­op­ers in the area. For them, re­turns will not be out of the F1 event per se but out of the real es­tate mon­eti­sa­tion of the township. F1 will be the much-needed mag­net for peo­ple which draws peo­ple out of the Cap­i­tal.

The im­pact will be akin to the set­ting up of the Maruti fac­tory that brought thou­sands of peo­ple to Gur­gaon in the early ’90s and to the Mahin­dra World City in the out­skirts of Chen­nai that was set up in the mid ’90s and hosted au­to­mo­bile ma­jors such as Ford, BMW, Volvo and Hyundai.

Sepang, 25 km from the Malaysia’s cap­i­tal Kuala Lumpur, hosted its first Grand Prix in 2010. The city’s grand prix track was built on a 260-hectare swamp.

Is­tan­bul has built a track in a des­o­late out­ly­ing part of the Turk­ish city, while the cir­cuits at Yas Ma­rina in Abu Dhabi and at Ma­rina Bay in Sin­ga­pore are new res­i­den­tial and busi­ness dis­tricts on re­claimed land

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