Work on smart subcities to begin soon
will slow down construction activity in these towns and the number of new launches will come down, says Limaye.
The growth story of emerging markets such as Yamuna Expressway and Sohna may also be pushed back by a few more years once Delhi’s land opportunity grows bigger, Limaye adds.
No apartments will be delivered under the policy before six years and, therefore, short-term impact looks unlikely. Also, to take the policy through to the operational level, the Centre, the state and DDA need to be on the same page.
Who will buy properties in Delhi?
incremental demand in Delhi but not the growth of Noida or Gurgaon.
The notification of these guidelines is already behind schedule and t he pent up demand i n Delhi i s huge. “This stock should have been created at least six years ago. Delhi has grown several folds since. When work on it started in 2001, Noida and Gurgaon were emerging destinations, today they are both established areas. Therefore, the demand emanating in Delhi would largely be internal, it will come from people who work in Delhi and who wish to move into better homes,” says Srivasttava of GenReal Advisers.
Ramesh Menon of Certes Realty says that there are three factors that propel people to buy property in an area. These include economic activity, political stability and demand from the existing democracy to consume the product.
Construction of the Karkardooma and Sanjay Lake smart sub-cities will begin by middle of 2016, vice chairman of DDA Balvinder Kumar said addressing a conference on Creation of Housing Stock in India:A Realistic View.
A report t i t l ed Creation of Housing Stock in India by PHD Chamber and Cushman & Wakefield was also released at the function.
The approximate investment for the Karkardooma Complex will be ₹ 4,500. A similar complex would also be set up at Sanjay Lake area for which the approximate investment volumes are yet to be worked out. Both complexes will be built by National Building Construction Corporation (NBCC), he said.
Services of a global consultant will be elicited for the Karkardooma and the Sanjay Lake projects, he said. “DDA has received proposals from global consultants from places such as Dubai, Singapore, Paris to design the projects,” he said.
According to the Cushman & Wakefield Research, India is likely to witness urban housing demand of nearly 13 million units by the end of 2018. Of this, about 19% demand (2.47 million units) would arise from the top eight cities in India, with LIG (0.85 million units) and MIG (0.88 million units) segments likely to account for the major chunk (about 80%) of the total demand.
Nearly 1.3 million units are currently in various phases of construction across these cities with an additional 1.0 million units expected to be launched by 2018. While a supply shortage is anticipated among all income groups, LIG housing is expected to bear the brunt with the highest mismatch in demand-supply.
LIG housing is expected to witness a shortfall amounting to 56% of the total estimated shortfalls in the top eight cities. Although 59% of the total anticipated supply is expected in the mid segment, a shortfall of 25% is foreseen by the end of 2018.
No apartments will be delivered under the land pooling policy before six to eight years