The realty market in the national capital region is on the threshold of a boom on account of increased economic activity. Current trends indicate that Gurgaon, Noida and Ghaziabad would compete for share of the realty pie.
The national capital Delhi has become a hub of action for north India due to greater economic activity and the resulting migration. The real estate market in Delhi and NCR has shown remarkable growth after the recovery from the 2008-09 economic slowdown, with greater investment coming to the NCR, both office and retails space has seen heavy development especially in Delhi with its position of being the political hub of the country. Consequently with rising population influx the demand on residential front has been ever increasing as well. The NCR residential market has risen up to these demands, which a great many projects coming up with the majority of which is expected to become ready for possession in a 2 – 3 year time frame. The NCR market has registered over 1 lac newly launched apartment units into the market last year itself. The key targets for these projects have been the mid income groups in Delhi, Uttar Pradesh, Haryana and Punjab who wish to own their own adobe and be part of the metropolis. Let’s take a look at the major centers that have shown growth the housing sector this year
Gurgaon region has raised in the price laddr the most. In Gurgaon the starting price of a basic 2 bedroom flat today is about 90 Lacs. Most people who prefer Gurgaon for their residence are those who already being staying in Delhi, mostly south Delhi region and working in Gurgaon. So they would cut time and cost in travel to their work places if they are staying nearby. But there have been a slight fall in this preference as Gurgaon after its initial development has become stagnant and in many areas people have experienced power cuts and water shortages. Apart from that local commute in Gurgaon is a hassle too.
This has led to Noida and it’s out skirts to come to the forefront. Noida has an advantage as it has good infrastructure and easy local commute and has become a sought after destination for housing with many companies setting up shop here. The projects here are targeted at middle and lower middle income segments due to their price positioning with base price in Noida starting from about Rs 40 Lacs. For people from nearby cities of UP like Agra and Bulandshahar, Noida is the preferred destination to get close to the Nationla Capital Delhi.
Although the recent land acquisition controversy in Noida Expressway and Greater Noida has effected this growth of Noida too with people becoming reluctant to invest in new projects.
Almost cheek by jowl to New Delhi, Ghaziabad is the fastest growing Indian city and the second fastest growing city in the world, according to the City Mayors study.
A rapidly expanding and industrially booming city, Ghaziabad is home to some of the world’s best and biggest shopping malls and multiplexes.
The construction boom in Ghaziabad is nothing short of phenomenal.
Ghaziabad’s average annual population growth rate: 5.20%
This has only allowed the focus to be shifted of investors to more ‘safer regions’ and one of the key beneficiaries has Ghaziabad and Raj Nagar Extension due to its better land acquiring models. People who have been living in unorganized colonies in these areas now want to shift to more organized societies. Along with them people from cities Meerut, Murad Nagar, Moradabad too are preferring Ghaziabad to be the destination to be in NCR. One key factor for the attraction of this area has been the low pricing strategies of the developers here with starting prices being around 25 Lacs. But as an investors and developer one must be careful and not get caught up in this pricing war. Some of the developers who are promising flats at lower than Rs 2,000 per sq feet, which as soon as they start with their construction will find to be an impractical pricing. If we take just the basic construction price it will be practically around 1400-1500 per sq feet. If we add other additional cost like the cost of land, raw material and labour costs, finishing, promotions, marketing and other miscellaneous costs the overall per sq feet pricing is bound to go higher than Rs 2,000 per sq feet.
Overall if we see the scenario, the growth in the real estate market especially in Delhi NCR region is here to stay. The ever increasing population and housing being a necessity the demand will keep on rising and the supply has to meet it. With Government policy support, inflow of Greater investments, the real estate market is poised for growth.