The big race for de­vel­op­ment

Though For­mula One rac­ing, which cre­ated the ini­tial de­mand for hous­ing in the Ya­muna Ex­press­way, is not back on track till 2016, the res­i­den­tial op­tions here con­tinue to at­tract buy­ers

HT Estates - - NEWS - Van­dana Ram­nani

The “or­ches­tral ca­coph­ony’ of the beastly For­mula 1 ma­chines that has ruled over Ya­muna Ex­press­way in the last three years might fade out till 2016. F1 supremo Bernie Ec­cle­stone said re­cently that “at the mo­ment, In­dia won’t be on for next year, for sure.”

How­ever, will an event of such mag­ni­tude have any im­pact on the emerg­ing real es­tate mar­ket in an area where F1 rac­ing was the chief pivot? The real es­tate mar­ket here was ex­pected to get about three lakh res­i­den­tial units over the years, out of which over 25,000 units are likely to be de­liv­ered within the next three years.

When the first race was held, realty ex­perts had said that the real im­pact of the event would be “felt in the mid to long term as the event be­comes more reg­u­lar. The gains from the event will emerge once the area de­vel­ops into a live, play and work des­ti­na­tion.”

While the main driver, the Ya­muna Ex­press­way, it­self is up and run­ning, re­duc­ing travel time be­tween Delhi, Noida, Mathura and Agra to al­most half and the ed­u­ca­tion sec­tor has got a fil­lip with some univer­si­ties get­ting op­er­a­tional, the go­ing is slow for the mar­ket. Ac­tual de­liv­ery of units, peo­ple set­tling in the area and job cre­ation in com­mer­cial sec­tors will take an­other five to six years.

F1 all along has been seen as a great an­chor for de­vel­op­ers as re­turns do not come from the event but out of the real es­tate mon­eti­sa­tion of res­i­den­tial projects. 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 was 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.

T h e s t o r y o f Ya m u n a Ex­press­way was wo­ven around the F1 track. It ap­peals to peo­ple look­ing at the value end of the mar­ket, in the range of

20 lakh on­wards. Th­ese peo­ple are not nec­es­sar­ily wait­ing for the F1 to hap­pen and their de­ci­sion is largely based on the bud­get that is set aside for a prop­erty pur­chase. Had the F1 event, which added value to the area, con­tin­ued, it would have al­lowed de­vel­op­ers to po­si­tion the area as an up­mar­ket one, says Anckur Sri­vast­tava of GenReal Ad­vis­ers.

Ac­cord­ing to Honey Katyal of In­vestors Clinic, the F1 des­ti­na­tion was like an ad­dress, some­thing sim­i­lar to Golf Links. The des­ti­na­tion be­came at­trac­tive in 2011 af­ter the first F1 event was held. Since then, there have been a host of new de­vel­op­ments – Night Sa­fari, new univer­si­ties, an in­ter­na­tional cricket sta­dium, not to men­tion the Ya­muna Ex­press­way, the com­ple­tion of which has so dras­ti­cally im­proved con­nec­tiv­ity in the area.

While prop­er­ties in Noida Ex­press­way are priced at

4,500 per sq ft and 5,000 per sq ft, ex­pect to pay up any­thing be­tween 2,500 per sq ft to 3,000 per sq ft in the Ya­muna Ex­press­way area close by. The price dif­fer­ence is al­most 50%. Two univer­si­ties are al­ready func­tional and the pro­posed Night Sa­fari is likely to see a spike in tourist traf­fic and de­vel­op­ment of ho­tels and guest houses in the area.

The Bud­dha In­ter­na­tional Cir­cuit is cur­rently be­ing used for events by­cor­po­rates. Com­pa­nies such as Fer­rari, Mercedes and Volk­swa­gen use the track for their events and rac­ing se­ries, a truck rac­ing event will also be or­gan­ised soon, says Vib­hor Gupta of Jaypee Greens.

The F1 races might have cre­ated the ini­tial de­mand mo­ti­va­tion but the area holds prom­ise,” points out Shveta Jain, ex­ec­u­tive direc­tor, res­i­den­tial ser­vices Cush­man & Wake­field.

Will the F1 Cham­pi­onship mak­ing an exit from In­dia un­til 2016 im­pact the realty mar­ket in Ya­muna Ex­press­way?

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