Realty market looks up for Yamuna Expressway
YEIDA’s plot scheme, solution to the land acquisition problem and higher number of institutional allotments in 2015 get thumbs up from prospective buyers
Irackling high-end real estate deals are the talk of the town, setting off fireworks in the market even though Diwali comes in November. A prime bungalow in Lutyens Delhi’s Hailey Road was recently sold for a whopping ₹ 450 crore and another top-of-the-line 8,000 sq yd prop
erty i n t he f one goes by the number of applicants in a recent residential plot scheme o f Ya m u n a E x p r e s s w ay Industrial Development Authority (YEIDA), it is hard to believe that the real estate market is going through a slowdown. The scheme, which was open from August 3, 2015, to August 30, 2015, offering 900 plots measuring 120 sq metre and 162 sq m, priced at ₹ 17.04 lakh and ₹ 23 lakh respectively, in the prime location of Sector 22D, has received 9,712 applications from prospective buyers. What’s important is that all the applicants paid the booking amount from their own resources.
A senior YEIDA official said, “Had the banks agreed to pay the booking amount on behalf of the applicants like it happens in realty schemes, the figure ( of applicants) would have been more than a lakh, but since banks needed more time to process the formalities, residents arranged for the money from their own resources. The draw for the scheme will be held on November 2, 2015,” .
The number of applicants has made realty experts optimistic. They feel that affordability, right size and price is the key to beat the recession. prestigious Tughlaq Road with an equally formidable price tag was to be sold to an industrialist who would be moving in once the final negotiations were completed.
According to real estate agent Devender Tara of Tara Estates Pvt Ltd, a property occupying acres of prime space in Kasturba Gandhi Marg was on the market too, though the price of ₹ 440 crore was too steep for one potential buyer who wanted the deal sealed at ₹ 425 crore. Interested buyers included a top Mumbai industrialist and a telecom company. Other areas of
t he Capital
“As far as property market along the Yamuna Expressway is concerned, it’s still quite affordable. There are many projects, the prominent ones among t hem being Jaypee Greens Sports City, which has plots, flats and villas at affordable prices. A plot measuring 153 sq yd close to the Formula 1 track at Jaypee Greens Sports City is available in the price range of ₹ 40 lakh to ₹ 50 lakh, which is a profitable buy at present,” says a property dealer.
Till now YEIDA has sold l and parcels measuring around 1,200 acres to 11 developers in the residential sectors such as 20, 22A and 22D. Prominent among them are ATS Realty, Supertech, Sunworld, Logix, Orris etc. Out of the 11, most of the developers have got their project plans approved from YEIDA and launched their projects while a few have applied for approval.
The biggest realty player in the area is Jaypee Greens, owner of 5,000 acres of land on both sides of the expressway. It has launched a variety of residential properties such as Boulevard Court, Udaan Apartments, Naturvue Apartments, Buddh circuit studios I & II, Kassia, the Kove, Sportsville etc. It offers plots, flats, villas, expandable villas and farmhouses. were also attracting wealthy investors. Siddharth Gargi of Sid Estates said, “An 867 sq yard property in Sunder Nagar was recently sold for ₹ 110 crore.” Properties in the area were priced between ₹ 115 crore to ₹ 120 crore – depending on the location and the property. In Golf Links, a 375 sq yd property could sell for ₹ 60 crore to ₹ 70 crore, again depending on the location. Chanakyapuri, too, was not trailing behind. “A 1,200 sq yd Malcha Marg proper t y was recently sold for ₹ 150 crore, and others similarly sized (1,200 sq yd) on the main road came with price tags of ₹ 200 crore to ₹ 250 crore,” Tara said. In Shanti Niketan, a 1,000 sq yd property was on the market for ₹ 85 crore while another of 400 sq yard was selling for ₹ 35 crore. In Vasant Vihar, where a wellknown cricketer bought a house recently, 1,000 sq yard properties were priced at over ₹ 60 crore.
Interestingly, the exclu-
“The smallest siz e unit which measures 450 sq ft costs approximately ₹ 14 lakh in a project close to the Formula 1 track,” says Ravindra Singh, a local property broker.
Besides private developers, homebuyers can look for residential opportunities in YEIDA’s earlier schemes. For instance, in 2012, YEIDA had allotted 4,500 flats, each measuring 29.75 sq mt, at the price of ₹ 7.75 lakh for the economically weaker sections in Sector 22D. The apartments are under construction and are expected to be delivered by 2017. The prices of t hese f l ats have appreciated marginally and realty experts feel that once they will be in the ready- tomove-in stage, they can fetch a handsome premium.
“Everything depends on the development of the area. Connectivity and commuting facilities need to improve because roads within t he sector have not yet been constructed,” adds Singh. sive high- end properties in the Capital form a relatively small percentage of Delhi’s residential real estate. There’s hardly anything available for sale, but demand remains high, especially among those from the affluent classes aspiring to move to an address in Lutyens Delhi, Chanakyapuri, Golf Links, Jor Bagh, Sunder Nagar, Shanti Niketan, West End and Anand Niketan, among others.
“Wealthy owners of properties in the high-end areas decide on the prices they want and are ‘somewhat’ open to bargaining,” revealed Gargi. They prefer to wait for the right customer and price and do not like to bargain or sell off properties at slashed rates. There are no distress sales.
Also, because of the likelihood of areas like Sunder Nagar and Golf Links being moved out of the Lutyens Zone by the government, some property owners planning to sell have put off their decision to assess the impact of this move on the market. hough sold at super premium prices of ₹ 150 crore t o ₹ 250 crore in the last two or three years, a number of central Delhi’s premium bungalows at Kasturba Gandhi (KG) Marg and Hailey Road come under the ambit of the Archaeological Survey of India (ASI) guidelines. These rules don’t permit redevelopment of plots located within 100 metres of the Agrasen ki Baoli, a designated protected monument.
Under a new provision of the Ancient Monuments and Archaeological Sites and Remains (Amendment and validation) Act of 2010 announced in 2013, properties located within 0 to 100 metres of the monument can be repaired and renovated. Construction and reconstruction can be carried out in properties located at a distance of 100 m to 300 m.
A property at the intersection of KG Marg and Tolstoy Marg was bought by Raj Singh Gehlot, CMD of Ambience Pvt Ltd in 2012 for ₹ 136 crore. While the actual size of the property is less than an acre (.9604 acres), the sanctioned floor space index (FSI) is 18,670 sq ft. Gehlot says he is “in the process of getting the necessary permissions from ASI. Some parts of the bungalow are within the 100 m range and some beyond the limit. This is something that ASI has to ascertain. We will retain the existing building, probably develop apartments there for personal use.”
Under the ASI rules only renovation and repairs can be permitted in Gehlot’s bungalow, which was earlier jointly owned by Gurbachan Singh, Chan Tajinder Singh, Dipinder Singh and the Sardar Ujjal Singh Family Trust. Sardar Ujjal Singh was the brother of late Sobha Singh, novelist Khushwant Singh’s father.
“It’s because of these complexities (ASI norms) that people should take into consideration the area on which they can build a structure before buying such properties. They may be spending ₹ 300 crore as land value but they need to know how much they can build on or repair for that price. Despite being strategically located, it is inefficient utilisation of the land parcel. The ASI guidelines are the biggest challenge,” says Shveta Jain, executive director, residential, Cushman and Wakefield India.