Thursday, January 15, 2009

Impact of Delhi Metro Rail on Delhi NCR Real Estate Market

The Mass Rapid Transport System (MRTS)—Metro Rail—has done wonders for Delhi real estate markets. The consequences are duly reaching the entire National Capital Region (NCR) and Ghaziabad is no exception. The following article in Times Property by Brix Research explores more.

With the metro connecting Delhi’s far-off areas the city’s active real estate market is blazing. In its third phase, metro is expected to reach Ghaziabad and will also be entering NOIDA and Gurgaon shortly. Under the metro route planned for Ghaziabad, it will be linked from Anand Vihar to Vaishali navigate Kaushambi.

Bordering Delhi on its east, Ghaziabad is rapidly emerging as the residential hub for IT professionals working in NOIDA and Delhi. It is emerging as the next popular address for Delhi-bound commuters.

Growth Drivers

The city of Ghaziabad is developing rather fast. Recently, the International Institute for Environment and Development, a UK-based policy research non-governmental body, ranked Ghaziabad as third fastest growing city of India. As per its reports, the city clocked an average annual growth rate of 9.28 per cent since year 2000.

Large commercial developments in NOIDA are encouraging builders to come up with residential units along the National Highway – 24 leading to Hapur, and along national Highway – 58, leading to Meerut.

More and more real estate developers are turning to Ghaziabad for launching their projects, both commercial and residential. Parsvnath, Omaxe, Suncity, DLF have already rooted their presence in the Ghaziabad real estate sector and other realty majors are eyeing the Ghaziabad real estate market with much anticipation.

Furthermore, development of city’s commercial sector is influencing the growth of residential property of Ghaziabad. Many of the MNCs, banking and insurance companies are rapidly setting up their operations in the city thereby accelerating the developments on the commercial front, with lots of investment coming in.

What’s more, the city is comparatively pollution free and is known for the best parks in the National Capital Region. There is Ram Manohar Lohia Park in Rajendra Nagar which is spread over a large area of 40 acres and the 25-acre Swarna Jayanti Park in Indirapuram.

Residential property values

Real estate brokers expect the property values in Ghaziabad to skyrocket once the metro plans come to fruition however the picture for the next 2-3 years is likely to remain dicey, as the project is scheduled to complete in 2009.

Sudhir Singh, a broker operating in Ghaziabad says, “There is going to be a sound increase in the prices owing to the benefits that will be there once the metro ventures in.” He adds, “The Metro has altered the complete look of Delhi with property prices registering a record high, we expect similar kind of a breakthrough in the Ghaziabad real estate market as well.”

Though, Ghaziabad real estate is holding back for the time being, A Khurana, real estate agent from Ghaziabad revealed that “the markets have shown uniformity in capital values driven by sluggish demand and adequate supply of new units.”

However, that is for a short period of time as with proposed infrastructure developments and upcoming common wealth games Ghaziabad real estate will be touching new altitudes of success, say industry sources.

Future Outlook

Beside, extension of the Delhi Metro, provision of good quality infrastructural facilities and construction of flyovers and widening of national highways are other reasons for the blooming real estate market in Ghaziabad.

13 flyovers and two under bridges are on the agenda to come up shortly in Ghaziabad. Construction on the Mohan Nagar flyover and the old bus stand crossing flyover has already started.

The former will be built at a cost of Rs 13.12 crore and will be completed in six months' time while the latter will be finished at a cost of Rs 10 crore in about 18 months' time, say media reports.

They will help in reducing the traffic congestion, leading to an increase in value of land.

Ghaziabad is poised to be one the fastest growing real estate destinations in the NCR, mainly because of its proximity to the site of the Commonwealth Games.

Infrastructure major Punj Lloyd has signed a MoU with Delhi-based real estate developer Ramprastha Group for developing multi-storied residential housing projects.

The first such project will be developed at Vaishali in Ghaziabad over approximately 29 acres in a fifty-fifty joint venture. The proposed projects of the venture form part of an integrated gated township. The development will consist of residential units by and large.

The Ramprastha Group has developed three townships, spread over 100 acres each, in Ghaziabad, comprising plotting, group housing, dwelling units and commercial projects.

Nonetheless, in lieu of systematic developments taking place in Ghaziabad, coming up of the express highway, enhanced connectivity and an international airport will give the requisite push to the real estate market of the city. According to media reports, there could be 200 per cent appreciation in Ghaziabad real estate prices by 2011.

Ghaziabad is heading towards rapid growth and witnessing dramatic changes in recent times.

Meanwhile, for those who are looking for good investment options, in both commercial and residential sectors, lofty returns and quality lifestyle in NCR, Ghaziabad has emerged as the ideal destination; say city-based real estate professionals.