Not just the NCR, but also adjoining areas, such as Sonepat, Faridabad, Rohtak, Jaipur, Agra and Meerut, are growing rapidly, thanks to a good network of expressways and rail links.
Almost all the major real estate developers have a presence in the region. These include DLF, Unitech, Tata Realty, Parsvnath, Raheja and Supertech. In the next couple of years, NCR will boast a 82-floor high-rise, a well developed Formula One racing track, a World Trade Centre and numerous sporting avenues including golf courses and boxing academies.
Said Parsvnath Developers Chairman Pradeep Jain: “Real estate is a sector that is completely driven by market sentiments. In past 6-7 months, demand in the market has revived. The industry also saw some new launches. Government agencies and authorities also came out with some favourable steps like the Regulatory Bill and REITs, which have further strengthened sentiments.”
According to estimates, India may face a shortage of 27-30 million housing units by 2012. Developers see this as a massive opportunity to cash in on. The Indian real estate segment is estimated to touch $180 billion by 2020. According to the Delhi Master Plan 2021, the population is expected to move up from 18.2 million in 2011 to 19.9 million in 2016 to 23 million in 2021. The population density is expected to move up to 225 persons per hectare in 2021 only for Delhi National Capital Territory, as indicated by the Delhi Master Plan 2021, from 112.97 persons for a hectare for Delhi-NCR, as indicated in Census 2011 data. Hence, significant demand is expected to hit this micro market, which shall support the upward movement in prices.
Sanjay Dutt, Executive MD, South Asia, Cushman & Wakefield, said: “The main watershed for this will be the upcoming 2014 general elections, and the improvements thereafter will largely depend on the ability of the new government at the Centre in bringing about strong structural reforms for the stability of the economy. Global corporates will remain invested in India with cautious optimism. Rationalisation of real estate portfolio will be the key to driving office space absorption for majority of 2014.” According to a report released by online personal finance advisor ArthaYantra, buying a house in Delhi will never be easy any more, thanks to escalating prices.
Now, renting is also set to go beyond the reach of the common man in Delhi.
ArthaYantra ranks Delhi seventh for buying and sixth for renting, with a score of 55, amongst the top eight Indian cities. Both these options in this city are becoming more expensive compared to other top metros, except Mumbai.
The average rental in the city has been pegged at Rs 21,181 for 1,000 sq ft, an increase of about 27 per cent over last year’s rental levels. Cautious Approach
Despite an overall slowdown in the economic scenario due to high inflation and reduced sentiments, purchasers with financial security have viewed this year as a good time to enter the market, as prices have been stable for a significant period during 2012-13.
Jones Lang LaSalle India says that among the top seven cities, Delhi-NCR and Mumbai have been leading in terms of having the highest concentration of shopping malls. As of now, the two metros together account for 62 per cent of the pan-India mall stock.
Another segment which is showing promising growth is branded homes.
Anuj Puri, Chairman and Country Head, Jones Lang LaSalle India, the concept of branded luxury homes is only two or three years old. The growth of this segment could be pegged at roughly 5-6 per cent per annum, owing to the fact that it is a very exclusive niche category with a restricted number of buyers.
One of the biggest hitches that cash-strapped developers face is getting approvals. They point out that obtaining the 57-odd permissions to begin construction of a project can take as long as two years. During this time, the cost of acquisition — or even just holding the land for a project — rises. P. Sahel, Vice-Chairman, Lotus Greens Developer, said: “The overall economic scenario in the country will improve in 2014. According to Asian Development Bank, the country’s GDP is expected increase to 5.7 per cent from the present 4.7 per cent. With inflation and CAD in control, the interest rates are expected to come down in 2014, spurring real estate demand. Delhi-NCR will continue to be the largest real estate market in India with an almost 40 per cent share in new residential launches. Infrastructure initiatives like the extension of Delhi metro in Noida and Greater Noida, and the completion of Dwarka Expressway, will further fuel real estate growth in the region.”
Source: Business Line