Affordable housing will continue to be in focus in the second decade of the millennium, withthe NCR playing a critical role in throwing up new destinations.
As the economy is likely to maintain a growth of around 8%in the coming decade, it will witness a sustained growth in the real estatesector with affordable housing continuing to be in focus. The National CapitalRegion (NCR) of Delhi, in particular, will see a number of new destinationscoming up. But, unlike the last decade when Delhi region did not contributemuch to the housing development, the new decade will witness a large number ofhousing projects being developed here.
At the same time, a number of townships will come in the NCRregion to meet thedemand for housing and commercial space. The last decade witnessed anunprecedented rise in the activities in the sector. Not only did constructionactivity increase substantially, the prices also went up manifold. The growthmomentum was so strong that it could withstand the global financial crisissuccessfully, albeit with the help of the government’s stimulus package. RBI’sdecision to reduce interest rates also helped in this regard. But, the maindriving agent in the revival in the second half of 2009 was the developers’strategy in building affordable houses. In this, builders built two- andthree-bedroom apartments with lower specification at up to 40% lower pricesthan what they used to sell only a few months ago.
CMD of CB Richard Ellis, South Asia, Anshuman Magazine,says, “In 2010, we can expect to see some sustainability in the residentialmarket as activity levels have improved. On the office market front, demand isexpected to improve, although rentals are expected to remain flat in the mediumterm due totheforecasted surplus supply of office space.” Samir Jasuja, CMD ofPropEquity, a realty research firm, says that Delhi will emerge as the centreof planned development in the coming decade with the new Master Plan cominginto effect soon. The huge land bank in Najafgarh in Southwest Delhi, Brijwasanand Chhattarpur in South Delhi, will be released under the new Master Plan ofDelhi. Similarly, a large tract of land will also come up in the marketplace inNorth Delhi. He says that thousands of acres of land are likely to be releasedunder the new Master Plan.
Jasuja said that the most heartening thing is that unlike inthe past, the new decade will see development in these areas by privatedevelopers. This will bring in development of modern condominiums withamenities like swimming pools , gyms, security systems and car parking lots.
As 2000-2009 saw the development of areas like Indira Puram, Vaishali, Vasundhara andCrossings Republik, in the East of Delhi in Ghaziabad, Sector 44 and 93A& B in Noida and MG Road, Sushant Lok, Golf Course, and DLF Phase II, IIIand V in Gurgaon and Nahar Paar area in Faridabad. Many of these areas wereunheard of, before 2000. Similarly, 2010-19 will see a hectic development ofnew areas like Noida-Greater Noida Exressway, Crossings Republik, Raj NagarExtension on National Highway 58 in Ghaziabad, and Noida Sectors 34, 50, 45,128 and 134 will emerge as the new development centres in the new decade. InGurgaon, the new areas that are likely to come up are Sohna Road, Golf CourseRoad Extension and Pataudi Road. Sonepat is also likely to emerge as a newdestination for residential market.
Samir Jasuja says that under the new Gurgaon-Manesar MasterPlan, around 1,50,000 residential units will be developed in the area. Out ofthis, around 10,000 are at the implementation stage by various developers. Therest will be developed in the coming years. Besides this, the introduction ofthe concept of ‘township’ will expedite the constructionof residential units. The development of townships will allow privatedevelopers to share the onus of development of infrastructure. So far, only thegovernment agencies used to develop infrastructure, which results in a slowpace of development. With this, the supply of housing units will get expedited.
The good news is that such a huge supply of housing unitswill stabilize prices. Global realty consultancy firm, Knight Frank, in itsreport on India’s residential market says that given a general stability of marketsaround Delhi and the supply expected in this part of the NCR until 2011, it isreasonable to expect residential prices in Delhi to remain relatively stable oreven increase, if demand in the region significantly increases due to betterinternal connectivity.
The report further says that several infrastructureinitiatives around the NCR are expected to boost residential options throughaugmenting connectivity and decongesting traffic within certain locations. Ifconsumers are attracted to small markets around the NCR due to betterinfrastructure, the subsequent decongestion of demand in the region couldalleviate the upward pressure on prices in locations like Gurgaon and Noida,which are becoming increasingly attractive residential options.
The 2010 Commonwealth Games had also played an important role in improving connectivity to different parts of the city through the MetroRail. As far-flung areas like Greater Noida, Faridabad, Kundli and Gurgaon arelikely to be connected by the Metro, the travel time to these places will comedown drastically.
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