A new growth corridor north of Delhi
PROJECTS/BUILDERS Kundli enjoys advantageous proximity to the upper-middle-class residential catchment of north Delhi. While the TDI Group, with its land bank of over 1,250 acres, remains the premier developer in the Kundli region, others like Parsvnath Developers, Ansal Properties, Omaxe, Parker Group, Raheja Malls, Eldeco County, Tulip Infrastructure, Collage Group, Eros Group, AJS Builders, Divine Group, Shree Vardhman and Jindal Greens are all present here.
For those of you looking to buy property, the real estate market at Kundli in Sonipat district of Haryana offers some good options. There are several developments such as the recent proposal to develop Sonipat as a smart city, the 135km Kundli-Manesar-Palwal or KMP Expressway, the ₹ 5,000 crore Rajiv Gandhi Education City, the 100-metre-wide road from the IGI Airport to Narela, improved rail connectivity (a metro stop is proposed to be built at Kundli as part of the rapid rail transport system), a proposed logistic park, a textile park, etc.
Kundli also enjoys advantageous proximity to the uppermiddle-class residential catchment of north Delhi. Against the backdrop of a landscape that is being increasingly defined by mega education, institutional and industrial projects as well as rapidly improving infrastructure, the outlook for the realty market within the KundliSonipat belt remains positive.
Some builders decided to develop this market way back in 2004. They believed that just as people from south Delhi had moved further into Gurgaon, and those from east Delhi to Noida, the residents of north Delhi would find the KundliSonipat belt to be an attractive residential destination. They assumed that those who had missed the bus in Rohini and adjoining areas would choose Sonipat. An important point, however, was not factored in. The two main drivers of development – connectivity and a thriving economy – were missing in Sonipat.
Though the list of smart cities to be developed is yet to be finalised, the National Capital Region may be first off the block. Gurgaon, Sonipat, Noida, Ghaziabad and Faridabad are expected t o be i n t he f i rst batch of 35 satellite cities to be converted to “smart cities”. Salt Lake City in Kolkata, Navi Mumbai, Yelahanka in Bangalore and Kanchipuram in Chennai could also make the cut. These will be built at an initial development cost estimate of ₹ 35,000 crore a year.
“As many as 5000 units will be delivered in the area by the end of March 2015. As many as 3,000 units have already been given for possession. There is more end-user demand rather
On offering financial opportunities, the Kundli-Sonipat belt has offered moderate-to-good returns on investment in absolute terms, though not as good as Noida and Gurgaon
On an average, there has been 30% to 40% appreciation in apartment rates since 2007-2008, implying that the annual property appreciation rate in the Kundli region has been in the range of 6% to 10%. Property in Noida and Gurgaon have more than doubled in the same period
From a future investment perspective, this region will essentially continue to remain promising due to its proximity to north Delhi and the Delhi borders. Investors with constrained budgets can explore Kundli than investors’ demand in the region and that is what makes it an attractive realty market,” says Kamal Taneja, managing director, TDI and vice president, Credai NCR.
“According to recent guidelines, houses worth ₹ 65 lakh in the six metropolitan centres and ₹ 50 lakh in other cities fall under the definition of affordable homes and are eligible for concession for housing loans. A large number of units in this price bracket are available in this area,” he says.
Pankaj Bajaj, managing director, Eldeco, says the NH1 belt, which goes right up to Panipat, has huge potential for economic growth. Unhindered access from North Delhi serves as a gateway to the Northern states of Punjab, Haryana, HP and J&K. Several infrastructure initiatives will change the economic landscape of the area. This market is currently underpriced as compared to other regional markets of NCR and is likely to see a significant upward correction in the next couple of years.
“Kundli in Sonipat district will be the next high growth corridor of NCR. The region enjoys excellent connectivity with Delhi through the NH1,” says Pankaj Goel, director, Express Builders Ltd.
However, much needs to be done before the micro market can take off in a big way. There have been delays in proposed infrastructure projects, especially the Kundli-Manesar-Palwal Expressway (KMP).
The region also lacks critical mass in terms of population. More people need to move in. Also, it has yet to emerge as a preferred office destination for IT/ITeS organisations.