The NCR is the largest residential market in the country by sheer volume of residential units launched. Currently, it has more units than the combined tally of the other five metropolitan cities of Mumbai, Chennai, Bangalore, Kolkata and Hyderabad.
One reason is that the NCR has a huge floating population pouring into Gurgaon, Noida, Greater Noida and Faridabad every year, comprising higher, middle and lower-middle income groups from different parts of the country. Due to a lack of infrastructure and the steep prices of available land in other parts of the NCR, Gurgaon and Noida cater to the demand for major affordable and luxury housing in the area.
A new study by Knight Frank India says that nearly 86,000 residential units entered the market in the financial year (FY) of 2011-12. Developers and promoters were able to gauge the pulse of the market and launched more affordable and mid-segment projects than premium projects during this period.
Nearly 40% of the units launched are in the Rs 25-50 lakh ticket sizes. As of March 2012, nearly 5,00,000 units were under various stages of construction in the NCR market. The vacancy levels have improved and stand at 36% in Q4 of FY 2011-12, compared to 40% in Q2 of FY 2011-12. Knight Frank India’s report says that the market shows a positive outlook, as sales have picked up in Q4 of FY 2011-12.
The property rates in Delhi and the NCR were on a steady upward rise till 2008, showing an increase of 25%, but fell sharply during the global slowdown which affected the real estate sector. They have shown an upward trend since mid-2009 and there has been a constant increase in property prices with prices growing by 50% since 2007,
Compared to Delhi and the NCR, the rates in Chennai went slightly down in the latter half of 2007, but since then they have grown almost 150% showing a steady upward trend. Mumbai has shown a balanced increase in property rates over the years and has been the only city to survive the slowdown of 2008-09 with no effect on property rates. It has shown a 50% appreciation in rates over the years. Jaipur property rates initially showed an upward trend from 2007 till early 2008, but then plummeted sharply due to the slowdown. Rates haven’t recovered from the downfall, having fallen by almost more than 40% from the 2007 level.
The IT city of Bangalore has showed a very sharp fall in property rates right from 2007 and stayed on a declining trend till mid-2008, falling by almost 45%, but picked up steadily over the years. Rates showed a sharp upward movement in the first half of 2010 by gaining almost 25% but fell again within the same year indicating a correction in the rates, Samarjit Singh says.
Another report says that the NCR will have a total demand of 10.2 lakh residential units, 249 lakh sq ft for office and 66.6 lakh sq ft for retail spaces by 2013. With rising demand in residential, office, retail, and hospitality sectors, Gurgaon is top on the demand chart. Forthcoming worldclass projects, proximity and good connectivity to Delhi are a few factors driving these figures.
Under the new Gurgaon-Manesar Master Plan 2025, the availability of land for development and avenues for new growth corridors has opened up. The new master plan allocates 14,930 hectares for residential use; this is good enough for over 58 new sectors. Most of the new developments are taking place in these sectors.
Records show that 35% of the proposed residential land is under the process of licensing.
The major new growth corridors in Gurgaon include extended Golf Course Road, Sohna Road, Pataudi Road, Manesar, Jaipur Highway and a concentrated growth in Bhiwadi and Dharuhera. Around NH-8, the sectors of New Gurgaon like 37, 37D, 80, 81, 82, 85, 86, 90, 9, 92, 93, 95, and 99 are having a tremendous response.
A proposal by Huda and other authorities concerned to allow developers do the sector roads is a positive development for these sectors. Vijay Gupta, the chairman CMD, Orris Infrastructure, says: “Another factor is the proximity of these areas from Dwarka-Gurgaon link expressway, which will help residents here bypass the traffic at Gurgaon toll near Delhi during peak hours. The gap between demand and supply is still widening. The earlier expansion plans of retailers have been revised. With high vacancy levels, developers are evaluating revenuesharing models to attract retailers. But, now, with the correction in prices, construction activities are picking up.”
Developers like DLF, Unitech, MGF EMAAR, Chintels, Ansal, Orris Infrastructure, Antriksh, Assotech Ltd, Raheja Developers, CHD, among others, have already a good presence in the real estate market here.
New projects like Assotech’s Blith in Sector 99, Raheja Developers’ Raheja Aranya, Antriksh Group’s Antriksh Zeal in Sector 112, Chintel Group’s International City on Gurgaon Dwarka Expressway, Orris Infrastructure’s Aster Court and Carnation and Ramprastha Group’s newly launched group-housing projects are showing good appreciation in prices.
After Gurgaon, the Noida-Greater Noida Expressway region, which connects to the 165km-long Yamuna Expressway, has shown a good appreciation in prices.
This is largely due to the forthcoming integrated townships, which have been launched on this stretch. Owing to the advantages of the expressway, many well-known builders Jaypee, Orris Infrastructure, Assotech Realty, Supertech, Antriksh, Logix, Ajnara, Gulshan Homz, AMR Infrastructure, etc, have come up with integrated townships amidst green surroundings, giving the place a further boost. Buyers have the option to choose their dream home according to their requirements, as builders are offering projects with several exotic lifestyle features.
Assotech Realty is developing a commercial project on Noida-Greater Noida Expressway with an investment of about Rs 300 crore. The 14-acre project, Assotech Business Cresterra, will have a total saleable area of 1.4 million square feet comprising 1.2 million square feet of office space, 150 service apartments and nearly 70,000 square feet of retail space.
The Noida-Greater Noida Expressway has been a hub for major real estate development in the last few years, be it commercial or residential. The area has not just had developments but has also registered a major surge in demand.