Delhi-NCR Real Es­tate mar­ket Over­view

Delhi be­ing the cap­i­tal of the coun­try is very im­por­tant city in terms of econ­omy, de­vel­op­ment and business op­por­tu­ni­ties. Top Bu­reau­crats, Ad­min­is­tra­tors, Politi­cians re­side there, nodal gov­ern­ment agen­cies are es­tab­lished there and hence, Delhi has a st

Accommodation Times - - Delhi - By Nikita Parekh

Delhi also known as the Na­tional Cap­i­tal Re­gion (NTC) of In­dia is the metro re­gion of coun­try. The po­lit­i­cal ad­min­is­tra­tion is been ex­pand­ing beyond the Na­tional Cap­i­tal Re­gion of In­dia (NCR) go­ing nearly 27 mil­lion pop­u­la­tion of res­i­dents. Due to such growth Delhi NCR has be­come one of the most pre­ferred lo­ca­tions for in­vest­ments. Among the var­i­ous in­vest­ments op­tions avail­able Real Es­tate def­i­nitely is a safe game due to high rate of ap­pre­ci­a­tion and pe­ri­od­i­cal re­turns on in­vest­ment. Gross State Do­mes­tic Prod­uct (GSDP) at cur­rent prices has in­creased to 365726 crore, in­di­cat­ing a growth rate of 17.70 per­cent dur­ing 2012-13. Ac­cord­ing to Delhi Gov­ern­ment statis­tics cap­i­tal has high­est per capita in­come in the coun­try. Fol­low­ing the eco­nomic growth of the cap­i­tal, its real es­tate mar­ket is also ex­plor­ing. Na­tional Cap­i­tal Re­gion (NCR) is spread over to­tal area of around 34144 sq. km and con­sists of the NCT of Delhi along with se­lect ur­ban ar­eas from the neigh­bor­ing states of Haryana, Ut­tar Pradesh and Ra­jasthan. Among the var­i­ous re­gions of NCR, Gur­gaon in the south and Noida and Greater Noida in the east have emerged as the key mi­cro-mar­kets. Prox­im­ity to Delhi, avail­abil­ity of large land parcels, ac­cess to tal­ent pool and en­hanced con­nec­tiv­ity by means of road and metro net­work have made th­ese satel­lite towns pre­ferred des­ti­na­tions for cor­po­rates to set up their of­fices, driv­ing the real es­tate ac­tiv­ity in th­ese re­gions. As per a re­cent re­search by, ICRA, (In­vest­ment In­for­ma­tion and Credit Rat­ing Agency of In­dia Limited), Pop­u­la­tion mi­gra­tion to the cap­i­tal is the ma­jor driver for real es­tate de­vel­op­ment in the re­gion around New Delhi. Ar­eas like Golf course road ex­ten­sion and new Gur­gaon have re­mained the most ac­tive mi­cro mar­kets in Gur­gaon wit­ness­ing max­i­mum launches. Ac­cord­ing to Mr. Ro­hit Inam­dar, Se­nior Vice Pres­i­dent, ICRA, “Fol­low­ing the weak macro-eco­nomic sce­nario re­sult­ing in sub­dued real es­tate de­mand and ris­ing cost struc­ture, both de­vel­op­ers and buy­ers are tak­ing a cau­tious ap­proach. As per ICRA re­search, golf course road ex­ten­sion and new Gur­gaon have re­mained the most ac­tive mi­cro mar­kets in Gur­gaon wit­ness­ing max­i­mum launches. The to­tal area un­der de­vel­op­ment in the Gur­gaon mar­ket stood at 66.11 mil­lion square feet (sqft) as on March 2014 end. Of the to­tal area, about 40.7% was in the New Gur­gaon re­gion fol­lowed by 31.6% mil­lion sqft in the Golf Course Road Ex­ten­sion re­gion. ICRA Re­search also es­ti­mates to­tal un­sold inventory in Gur­gaon at 18.82 mil­lion sqft with 63% un­sold inventory be­ing in the Golf course road ex­ten­sion and New Gur­gaon; com­men­su­rate with the surge in sup­ply in th­ese two re­gions in the back­drop of slow­down in real es­tate de­mand. . We be­lieve in the near term, im­prove­ment in sales ve­loc­ity will take prece­dence over new launches”

DDA vice-chair­per­son Balvin­der Kumar, said, “Narela is the most suit­able and best lo­ca­tion to con­struct homes, as land else­where in Delhi is al­ready oc­cu­pied. So we have de­cided to put in all ef­forts to ex­ploit the op­tions in de­vel­op­ing Narela.”

Gur­gaon re­gion has been sub­di­vided into var­i­ous ares Golf Course Road, Golf Course Road Ex­ten­sion, Sohna Road, Dwarka Ex­press­way and New Gur­gaon re­gions. The Golf Course Road and Sohna road mar­kets are de­vel­oped mar­kets with prod­uct pro­file in mid to lux­ury seg­ment, the other mi­cro mar­kets of Dwarka ex­press­way, New Gur­gaon and Golf Course Ex­ten­sion are still in de­vel­op­ing stage. The Gur­gaon mi­cro mar­ket is also wit­ness­ing ma­jor in­fra­struc­ture de­vel­op­ments like de­vel­op­ment of Rapid Metro phase II, KMP ex­press­way, Dwarka ex­press­way, ex­ten­sion of metro line from Dwarka sec­tor 21 to New Gur­gaon re­gion, etc which are ex­pected to cre­ate a pos­i­tive im­pact on the over­all mar­ket sce­nario. Although there have been sig­nif­i­cant de­lays in com­ple­tion of most of th­ese in­fra­struc­ture projects, the real es­tate mar­ket is ex­pected to reap sig­nif­i­cant ben­e­fits post com­ple­tion of th­ese projects. Thus while price af­ford­abil­ity rel­a­tive to Delhi, prox­im­ity to Delhi and em­ploy­ment op­por­tu­ni­ties re­main the ma­jor driv­ers, the over­all de­vel­op­ment of the so­cial and phys­i­cal in­fra­struc­ture in Gur­gaon will re­main a key de­ter­mi­nant of fu­ture growth.

Delhi’s Real Es­tate mar­ket has be­come the huge rage in NRI (Non-In­dian Res­i­dents) who are set­tled abroad ev­ery year con­tem­plate about com­ing back need av­enues to invest their huge earn­ings. If cur­rent mar­ket sources and statis­tics are seen it is been seen that lot of in­quires are re­ceived from

the large NRI base.

Noida is the another most im­por­tant and rapidly grow­ing re­gion of NCR With good in­fra­struc­ture, metro con­nec­tiv­ity and good road net­work, real es­tate de­vel­op­ment in the Noida re­gions is pick­ing up rapidly. This is im­por­tant, since in­fra­struc­ture de­vel­op­ment is the pri­mary draw for buy­ers and in­vestors into this area. Up­com­ing ma­jor projects like the Ex­port Pro­mo­tion Zones and Taj Eco­nomic Zone along the Ya­muna Ex­press­way are likely to push the eco­nomic de­vel­op­ment of this re­gion, con­se­quently giv­ing a fur­ther boost to real es­tate de­vel­op­ment. In fact, the pos­i­tive re­sponse from buy­ers and in­vestors in Noida has now made this the pre­ferred des­ti­na­tion for launch­ing new projects and ex­pe­dit­ing ex­ist­ing ones. All in all, Noida is be­gin­ning to emerge as one of the bright­est stars in Delhi NCR-real es­tate. The grow­ing pace of real es­tate mar­ket in Delhi NCR has led Delhi De­vel­op­ment Au­thor­ity (DDA) to con­struct more homes in the re­gion. This year DDA launched its big­gest hous­ing scheme, where they had kept 25,034 flats on of­fer. Now Delhi De­vel­op­ment Au­thor­ity is plan­ning to de­velop Narela as the new hous­ing hub it is go­ing to con­struct around 20,000 flats here over the next 2-3 years. While an­nounc­ing the news DDA vice-chair­per­son Balvin­der Kumar, said, “Narela is the most suit­able and best lo­ca­tion to con­struct homes, as land else­where in Delhi is al­ready oc­cu­pied. So we have de­cided to put in all ef­forts to ex­ploit the op­tions in de­vel­op­ing Narela.” The bloom­ing realty mar­ket and the grow­ing de­vel­op­ments in the ar­eas of the cap­i­tal has at­tracted NRI in­vest­ment. Delhi’s Real Es­tate mar­ket has be­come the huge rage in NRI (Non-In­dian Res­i­dents) who are set­tled abroad ev­ery year con­tem­plate about com­ing back need av­enues to invest their huge earn­ings. If cur­rent mar­ket sources and statis­tics are seen it is been seen that lot of in­quires are re­ceived from the large NRI base. Apart from ma­jor Delhi part NRIs are very keen in in­vest­ing into NCR re­gion such as Gur­gaon, Noida, and KMP ex­press­way, Ghazi­abad, Noida Ex­ten­sion, Bhi­wadi, Dwarka Ex­press­way, Ya­muna Ex­press­way and Farid­abad. Th­ese ex­ten­sions of Delhi are bound to give new in­vest­ment op­por­tu­ni­ties be­cause it is linked to Delhi Real Es­tate mar­ket and good re­turns en­sured. If we see the tremen­dous growth on the ex­press­way many res­i­den­tial projects are mush­room­ing spe­cially in 108, 109, 106, sec­tors where max­i­mum in­vest­ments are ob­served for 2-3Bhk units some­where be­tween 60-80lakh. Prices are high as Rs 5000-7000 per sq ft for the high rise lux­ury projects but still it is on de­mand owing to the high rate of ap­pre­ci­a­tion for long term as well as short term also. Another great in­vest­ment op­por­tu­nity for NRIs is open­ing on Ya­muna Ex­press­way. Promis­ing good more than 2800 units have been sold alone. Am­ple de­vel­op­ments have been made by re­puted de­vel­op­ers. Sec­tors like 137, 143, 50, 113, and 117 have un­der­gone an ap­pre­ci­a­tion of ap­prox 20-35%. Mar­ket dy­nam­ics is chang­ing con­stantly in In­dian Real Es­tate and Delhi NCR re­gion will take an up­ward mark in 2-3 years. Ac­cord­ing to the real es­tate ex­perts this is the best time to invest in the In­dian Real Es­tate.

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