Rentals in Rohini fall by 4%
Despite weak sentiments and falling prices, the realty market of Rohini may gain momentum once a few infrastructure plans are implemented
Rohini in northwest Delhi has, over t he years, evolved into a soughtafter residential neighbourhood. Developed by DDA in the 1980s as a composite society, it is considered to be well-laid out, offering a decent quality of life. It also happens to be the first mega sub-city project undertaken by the Delhi Development Authority (DDA) in the urban extension of Delhi. However, the area has, of late, seen a price correction with most sectors registering a decline in prices.
According to a report by 99acres, a real estate portal, rentals for 3 BHK units in Rohini have fallen by 4% in the period between Q4 2012 and Q4 2013. Neeraj Sharma, sales head of the portal, attributes this decline to the weak market sentiment in the area. He says, “There aren’t enough job opportunities in Rohini, so a lot of people have moved from here to Noida or Gurgaon to avoid the long commute to their workplaces. Besides, the rentals here are high compared to other parts of Delhi/NCR.” As a result, many builder floors are lying unoccupied. The rentals (for a 3BHK unit) are around ` 22,700 per month.
Rohan Sharma, senior manager, research and real estate intelligence services, JLL India, agrees that the Rohini market is not exactly thriving at present, with very few transactions taking place here recently. “In fact, there has been a correction here of around 10% to 15%, and brokers are ready to negotiate deals by as much as ` 20 lakh per flat. Besides, not many banks are at present offering loans on properties in the area due to the fact that earlier sale transactions here were executed on the basis of GPA (general power of attorney),” he says. This is because of absence of clear sale deed or documentation in most places, including some unauthorised colonies. He adds that new investors are not available in the Rohini market, as most of them want to buy plots in the recently notified adjoining area of Zone N, which is available at a good price.
The current market price in Rohini is anywhere between ` 7,000 to ` 10,000 per sq f t, depending on the sectors, and the sale price quoted for a 3 BHK unit measuring about 1,200 sq ft is ` 1.1 crore to ` 1.25 crore. Six months ago, the price was about ` 1.45 crore. There are no major developers in the area and no new construction, so to speak. Dominated by DDA and CGHS (cooperative group housing societies) apartments, Rohini has some options in the secondary market. According to indiaproperty.com, a real estate portal, around 10% of the total inventory in Rohini’s secondary market is available for sale.
Despite the rather weak market sentiment, residents of the area seem quite content with the progress Rohini has made. Rohan Mathur, one such resident, says, “We have no complaints as far as basic amenities are concerned. There is good social infrastructure in the area in terms of malls, schools, wellmaintained parks, and so on. Connectivity is good too with three functional metro stations close by. Parking is a problem though; there is not enough space and this leads to conges- tion. The security situation also needs to improve in some sectors, especially the ones near the industrial belt. Many cases of chain snatching have been reported of late.”
Delhi Master Plan 2021
Rohini is in the cusp of some new infrastructure development, with much of the proposed plans to be implemented soon. The urban extension road (UER), which is part of the Delhi Master Plan 2021, is a case in point. Envisaged as three ring roads connecting Wazirabad bypass to important highways, the UER is expected to improve connectivity between Rohini and Gurgaon and Dwarka. Sharma of JLL India believes that new project launches can be expected along the UER, once it is completed. Rohini Sector 29 is expected to benefit due to its proximity to the proposed UER.
According to DDA, phases 4 and 5 are under development, and they are expected to accommodate an estimated population of over two lakh, under the plots and group housing flats scheme for Rohini. Besides, the proposed extensions of the Delhi Metro line – from Rithala to the upcoming phases four and five, for example– will boost the real estate potential of the area to some extent.