Delhi property market scores on top-of-the-mind recall value

Vibrant cities for vibrant economy-II

By: Track2Media Intellisearch

Delhi-NCR has emerged as the top realty destination for reasons more than one. No other city in the country has stretched its periphery as far and wide and the satellite towns in the National Capital Region (NCR) act as the four pillars-Noida, Gurgaon, Ghaziabad & Faridabad-of Delhi. In terms of the employment prospect, infrastructure growth, quality of living and the overall economic vibrance Delhi-NCR is way ahead and last, but not the least, it scores on the top-of-the-mind recall value of the investors, HNIs and the NRIs.

The growth prospects of the realty sector in the Delhi-NCR region is ranked the highest and the region has been showing the highest per capita income growth in India during the last decade. The rise in disposable income is very visible in the growth of real estate and capital goods consumption here. Given the projected GDP growth for the country and the planned budgetary expenses for the region, it is safe to assume the continuation of a large quantum of investment in the infrastructure development for the region.

The ULI-PwC report titled ‘Emerging trends in Real Estate ® Asia Pacific 2011’, which surveys comments from 150 industry leaders across the Asia Pacific region, ranks New Delhi as the foremost real estate market destinations. New Delhi is ranked second for development prospects, and fifth for investment prospects. The driving force: the Government’s plans to boost infrastructure with new roads, railways and airports; and its approval of development plans for tens of thousands of acres of land for urban development. Foreign institutional capital is drawn to the city, with housing and hotels as the most favoured categories.

What makes Delhi-NCR stand out in the city ranking is the fact that the region is fast emerging as the financial capital of the country as well. MNCs and corporate bodies from all over the world are turning their heads towards Delhi-NCR sighting the connectivity, manpower and skilled labor resource. NCR region is now the home to major international and domestic companies, be it IT, ITES, BPOs or other manufacturing and service industries.

Better connectivity and improved infrastructure between Delhi and NCR makes life easier for commuters to reach their work place. New roads and flyovers make sure that traveling is an easy ride from Delhi to any of the satellite cities. Owing to the proximity with New Delhi, there has been a tremendous growth in the infrastructure and economy of these cities. States like Haryana and Uttar Pradesh have benefited a lot from the growth of Delhi.

Over the last 15 years, the face of Delhi real estate has changed visibly. Standalone houses have gradually been giving way to cooperative housing societies, private developer apartments and independent designer floors. In commercial real estate, while the Central Business Districts like Connaught Place may not have lost its sheen, they are definitely meeting up with the more competitive Peripheral Business Districts.

Rajeev Talwar, Executive Director, DLF, says the NCR (National Capital Region) is likely to remain the best market. “The region has got great traction. Delhi is a very viable city and we see a lot of pull. Gurgaon is also going really strong, especially due to the IT push,” he says, adding that infrastructure projects like the Yamuna Expressway and the Delhi-Mumbai industrial corridor will give the region an added impetus.

Till a decade back, the satellite towns of Delhi were like small villages with no infrastructure and basic facilities. The landscape has now transformed completely with the construction of new shopping malls, skyscrapers, roads and flyovers. Modern style residential societies have been developed with luxury homes, apartments, flats and bungalows. Commercial buildings and offices are ever increasing owing to growing demand from foreign and domestic companies.

Noida was created in 1976 as satellite town of Delhi and till 1990 majority of people who came to Noida were working in Delhi. Gradually industries in Noida also grew and better connectivity led Noida to emerge as one of the most modern cities of India with world class amenities and infrastructure. It is a booming market where upsurge in luxury homes has been phenomenal. It has become one of the most important corporate, industrial and residential hubs of the country. Noida is home to many big international as well as national companies.

Initially a small farming village located south of Delhi that had only a stand-alone tilted building that reminded everyone of the Titanic, the skyline of multifaceted Gurgaon today has specialised malls such as, Auto Mall and Wedding Mall and the Special Economic Zone. With developments like NH8 Expressway—the eight-lane toll Expressway between Delhi and Gurgaon, the Kundli-Manesar-Palwal Expressway, the Metro Rail project, Rajiv Gandhi Education City in Kundli on the Delhi-Haryana border, Gurgaon has become one of the best investment cities in the country. The development near Dwarka-Gurgaon Link Expressway (Northern Peripheral Road, NPR), also adds icing to the cake.

Las Vegas, London and now Ghaziabad! Believe it or not but the wild west of UP is now up there among the 10 most dynamic cities of the world. A Newsweek survey, which put the city on the global map, said so in 2006 itself and since then Ghaziabad has been hip and happening. In the last couple of years, it has done a complete makeover by adding malls, hi-tech cities and golf courses to its new face.

Faridabad, a city that was once considered a cesspool of industrial filth and pollutants, has now turned into a choice destination. Since 2007 it has emerged as an important cog in the wheel of NCR and is also seen as the only place that provides affordable housing in the region. Faridabad is about 25 km from Delhi and the property prices on this side of south Delhi are quite low as compared to those in Gurgaon and Noida. As a matter of fact, Faridabad is quite affordable but what has increased the realty potential of the city is the Faridabad-Ballabgarh-Palwal industrial complex.

Developers and property consultants believe that the property prices in the NCR may witness average appreciation of 10-25% in 2012. The demand for right-priced homes continues to be strong and the residential market is expected to remain robust. Besides, the industrialization and infrastructural growth, along with better connectivity, will boost the commercial property as well. Some tightening of liquidity may drop in transaction volume in the short term, but from a long-term perspective, the Delhi-NCR market is clearly upward bound.

Advantage Delhi-NCR