Ghaziabad is emerging as a new residential hub for IT and ITES professionals in Delhi NCR. Ghaziabad is mentioned among the list of world’s ’10 most dynamic cities’ and becoming a hottest city in India for the people bounded around Delhi NCR. People are attracting towards the city due to affordability for housing societies. New properties are developing along the NH 24, NH 58, Raj Nagar extension, Indirapuram and Mohan Nagar.
Real estate investors and buyers are attracting towards the housing societies of the city due to its proximity to Delhi and other region of NCR. Various residential, commercial and township projects are going on in the city with innovative infrastructure and quality construction. The city is growing as one of the important destinations of realty field.
The cost of residential project ranges from 3000 to 3500 per sq ft and varies slightly as per the location. The city is well-connected to capital by road and metro. Good transportation and proximity to capital are notable points for the city.
A good investment time for property is during the period of a slump. A real estate investment seems to be risky at some time hence, the proper study of property and market provides huge gains in terms of income.
The notified final development plan of Gurgaon-manesar Urban Complex 2031 opens up more residential opportunities in Gurgaon.
With the development plan of Gurgaon-Manesar Urban Complex 2031 notified last year releasing housing space in more than 10 sectors in areas earlier reserved for special economic zones, residential growth will in all likelihood become a continuous process in Gurgaon.
Nearly 16,021 hectares have been allocated for residential use in the final plan as against the 15,148 hectares reserved in the draft development plan 2025. The final plan is aimed at catering to the needs of 42.50 lakh people — the estimated population by 2031.
The Haryana development authority and private builders have already developed a residential area of about 8000 hectares in various residential sectors (as many as 50 new sectors were proposed in the earlier draft). The new residential sectors in the final plan are 36A, 37-D (a new extension introduced to the left of the Northern Peripheral Road), 68 (reserved for affordable housing), 79A (earlier part of Sector 78), 88A, 88B, 89A, 89B, 95A, 95B and 99A. In Sector 68, 50 hectares have been added for affordable housing and 215 hectares set aside for a university.
Around 10 group housing projects and townships are expected to come up in these areas. This will throw up as many as 8000 residential units and plots in the new sectors. Some well-known developers active in the area are looking for opportunities here.
A 75 m road parallel to the NPR that starts from Delhi and ends near the NH8 has also been included in the new plan. In the earlier plan, the road ended behind Sector 99 but will now touch the NH8 between sectors 77 and 78. This will improve connectivity of sectors 82, 85, 88A, 88B and 89A. Some sectors such as 88A, 88B and 99A will get dual benefit of both the 75 m road and the 150 m NPR. Projects in Pataudi Road will also benefit.
Over the years, Bhiwadi has developed into a haven for affordable housing; now, with RRTS planned for the area, the place will see a sea change.
Ease of connectivity with Delhi and availability of affordable houses have made sure that Bhiwadi gets due attention in the real estate sector. The area has gained from its location on NH-8 and with the development of Delhi-Mumbai Industrial Corridor (DMIC) in the vicinity. DMIC will attract industries like automobile, packaging, IT, logistics, etc, which will further fuel demand for residential apartments in a big way.
Developers saw this opportunity and have come up with planned developments in this small place and, now, the place has all the necessary real estate developments needed for a good lifestyle – commercial areas, malls, shopping centres, and good residential projects.
Apart from the investment angle, people from the Delhi NCR are increasingly looking at getaway homes and this place caters to that demand also.
Sumit Berry, MD of Berry Developers and Infrastructure Pvt Ltd (BDI), says: “RRTS, DMIC, and NH-8 have contributed significantly to the prospects of the real estate sector of this place. Bhiwadi is now attracting industrialists and real estate is booming. Among other things, one more plus point of Bhiwadi is its flawless water supply system. It offers better facilities at much more affordable prices, within the reach of the middle-class people, than Gurgaon, Noida, Faridabad, etc.”
On road, it takes around 1 hour from Huda Centre Metro station in Gurgaon to Bhiwadi. At this point, people moving from Bhiwadi to Delhi might run into traffic congestions at Manesar during peak hours but the problem will soon be solved once the flyover in Manesar is complete. Internal roads are going to improve as the old road in Bhiwadi is being redone, which will help in better manoeuvring.
Harsh Trehan, CMD of Trehan Home Developers, says: “Bhiwadi’s properties are well priced which makes the place attractive to end users. Investors are also showing greater interest as they see a huge potential for appreciation here. Once the Japanese corridor and the RRTS are functional, the appreciation and demand of property here will be beyond imagination. Thanks to the people who could not afford to invest in Delhi or Gurgaon, the appreciation in property rates here has been around 30% in the last few years.”
The major attraction of this area is the Tapukara industrial area, which is located on Bhiwadi-Alwar Road. The road has the status of a national highway, called NH-71B. Developers have acquired land on both sides of this road and have launched projects with plotted developments and group-housing projects. The availability of plots is comparatively less in Bhiwadi, compared to apartments and independent floors. Sunil Chutani, MD of Terra Realcon, says: “People who have employment in Gurgaon and Manesar are buying homes in Bhiwadi because of affordable prices. The distance is also not a hindrance as it is like travelling from one point of Delhi to another; the time taken is same. What Bhiwadi needed is greater frequency in public transport utilities, which would help buyers save money on their daily commutes – once the RRTS is in place, it will definitely provide that opportunity and the market here will go through a sea change.”
Bhiwadi is also offering good returns on investment in commercial property. Mall culture is picking up and several malls and office spaces are being constructed in the town. Capital Mall by R-Tech Developer, Village Mall by Ashiana group, Parsvnath City Centre, Genesis Mall by Genesis Infratech, Avalon Galleria and Avalon Plaza by Avalon Group, Spectrum by BDI Group, Optus Hometel by Optus Group, and BB Mall and BB Square by Jagriti Infrastructure Pvt Ltd are some of the malls under construction in Bhiwadi.
Buyer Profile: Bhiwadi, being an affordable place, is attracting working people in areas like Manesar and Gurgaon. The market here is a typical Tier II one where in-city buyers are yet to get used to apartment culture. However, over the last one year, luxury real estate projects are also coming up here, which means that buyer interest in the area has increased.
Ajay Singhal, chairman of Avalon Group, says: “Buyers here are from nearby areas and not from Bhiwadi, which shows the popularity that this place is gaining in real estate market. Already, the market is picking up pace, mostly because of the high prices in Gurgaon and other NCR areas. Bhiwadi’s main target audience is the people working in expensive area like Gurgaon.” Developers here are also targeting people who are working in Delhi – however, this will only be possible when people understand the economic feasibility of buying affordable homes in Tier II cities and travelling to Tier I cities for work. Many people have already understood this dynamics and are living in Tier II cities while working in Tier I cities.
Bright Prospects Ahead: Bhiwadi is over 10,000 acres and home to numerous global industries including in the automobile, pharmaceutical, cable, electrical appliance, garment, and beverage sectors.
The major industrial areas in Bhiwadi are Kahrani, Chopanki, Pathredi, Khushkhera and Sare Khurd. Honda Siel Cars India Ltd, Gillette, Bausch & Lomb, Relaxo, Lakhani, SICPA, Hi-Tech Gears, RICO Auto Industries Ltd, Hi-Tech Gears Ltd, Sri Ram Group, Kajaria Ceramics, International Tractor Ltd, Saint Gobain, etc, are present in this area.
Rajesh Yadav, spokesman of Credai Bhiwadi, says: “The rate of appreciation will grow exponentially once the industrial belt becomes stable here. As soon as the people start moving into the industries here, the demand for housing will increase and hence the appreciation. Many big industries are shifting to Manesar, which will mean that people will shift to Bhiwadi also.”
Once the Japanese corridor and the RRTS are functional, the appreciation and demand of property here will be beyond imagination. Thanks to the people who could not afford to invest in Delhi or Gurgaon, the appreciation in property rates here has been around 30% in the last few years.
Faridabad has emerged as a playground for some of the most distinguished and prominent real estate developers.
Despite stiff competition from emerging industrial and residential hubs in the NCR, Faridabad continues to attract several large and medium-scale real estate developers and promoters.
An official of Huda says that they have plans to make Faridabad the best city of Haryana and have put in place a complete city development programme (CDP), which will assure top-class infrastructure in this emerging city.
Realty players like BPTP, Puri Construction, KLJ Town Planners, RPS, SRS, Omaxe, etc, have already launched housing projects here with several of them nearing completion. Looking at the realty market and the improving infrastructure in Faridabad, other top realty players like Assotech Ltd, Gardenia Group, and TDI are also planning integrated township projects here.
According to the NCR Regional Plan 2021 for Faridabad, the population of this emerging city is likely to touch 21.3 lakh by 2021. The growth rate has been very rapid during the last three decade.
Keeping this in mind, the Town and Country Planning Department of Haryana has prepared a 20 year development plan for Faridabad. Huda is acquiring land and developing new sectors in Faridabad. Given the rapid pace of development, the CDP observed that there is a need for a revised development plan incorporating all the proposals in the NCR Regional Plan.
The CDP has proposed the acquisition of about 465 acres for various sector development proposals by the Huda and the Municipal Corporation of Faridabad (MCF) and also for various NCR transport proposals.
The CDP further suggested that there be common building regulations and bylaws for all development-plan implementing agencies like the Huda and the MCF. The bylaws should also incorporate decongestion proposals like accommodation reservation, introduction of parking norms, and zonal regulation, etc, the CDP said. Faridabad gets a huge floating population from Delhi.
The CDP has proposed to convert the city into ‘a city without slums’ by providing safe living environment for urban poor with provision of services (part of overall services programme) and housing. In line with this, 15,000 low-cost houses are to be built in the next six years at Rs 1.45 lakh per unit. It is hoped that half of the existing slum population will be relocated into these units.
Also, the CDP has suggested 10% beneficiary contribution from all slum households proposed to be shifted into the new houses to promote ownership. Decent infrastructure would be developed and amenities provided for the remaining slum population, at the very place they are living now.
An old industrial township, Faridabad continues to attract investors, developers, industries, and service sector setups. Faridabad has a number of things going for it: the 1,483km-long Delhi-Mumbai Industrial Corridor (DMIC) in the vicinity, an industrial model township (IMT) over 1,750 acres, and the rapidly developing Neharpar area of Faridabad will lift the profile of this emerging city and foster a new wave of industrial, commercial, and residential development.
The CDP envisions rapid infrastructural development to boost the local economy which found support with the stakeholders, who want Faridabad to be made a model town with matching urban services and efficient governance.
On the connectivity front, Reliance Infrastructure has a 66 km road project on high density traffic zone involving the four-laning of Gurgaon-Faridabad Road and improvement of Ballabgarh-Sohna Road on a build-operate-transfer basis. The 180 km stretch of NH-2 (Faridabad to Agra) is going to be widened. The project is to be executed under by Reliance Infrastructure on a DBFOT (Design, Build, Operate, Finance, and Transfer) basis; it will widen the stretch from four to six lanes under NHDP Phase V at a cost of Rs 2,945 crore. This stretch is a part of the golden quadrilateral and the historic Grand Trunk Road. It connects major cities like Delhi, Faridabad, Ballabhgarh, Palwal, Kosi Kalan, Mathura, and Agra. NH-2 is well connected with west, north and south Delhi, and with states like Haryana, Punjab, Chandigarh, Himachal Pradesh, and J&K. The Delhi Agra Toll Road Pvt Ltd (DATRL) road starts from Badarpur Border and ends before Yamuna Bridge, Agra city.
The 180 km-long stretch covers Haryana and Uttar Pradesh. Commuters travelling between the IGI airport, Delhi, and Agra can now take a new and convenient route through the 25km-long Gurgaon-Faridabad Road.
This route to Agra via Gurgaon will be cost effective as the total toll for a car would be Rs 196, compared to Rs 347 to be paid if travelling via Noida toll bridge and the access controlled Yamuna Expressway.
NH-2 is considered as the most convenient route for international tourists travelling to Delhi, Mathura, and Agra. It touches major cities and towns like Delhi, Gurgaon, Faridabad, Ballabhgarh, Palwal, Hodal, Kosi, Vrindavan, Mathura, and Agra. The stretch also covers tourist destinations like Surajkund, Badkhal Lake, Jagmohan Temple, Shivling Temple at Hodal, Banke Bihari Temple, Radha Krishna Temple, Radha Kund, Kokilvalam Dham, Shani Temple, and ISKON temple.
Metro Line: Work on the 13.8km-long Metro line from Badarpur to Faridabad’s YMCA Chowk is in progress. The Metro is slated to stop at NHPC, Maharajganj, Sector 27A, Badkhal Chowk, Old Faridabad, Ajronda, Sector 12, and YMCA.
The NHAI (National Highway Authority of India) has cleared the DMRC’s proposal for change of alignment from the middle of NH-2 to the left side of the national highway from the Badarpur side. The Haryana government has already approved a budgetary allocation of Rs 1,588.6 crore for the extension of the Delhi Metro to Faridabad.
Local Connectivity: The 4.4km-long elevated six-lane road, the Badarpur Flyover, which connects Delhi to Sector 37 in Faridabad has come as a huge relief to thousands of commuters who use this road daily. Nearly 70,000-80,000 vehicles use this road every day.
Realty Scenario: Neharpar area is developing as a new realty hub of Faridabad. The area is spread in different sectors of the city, including Sectors 75, 76, 81, 82, 85 and near posh Sectors 14 & 15. It is expected to be the preferred site for people coming from different pockets of Faridabad and Delhi.
A number of developers like BPTP, Omaxe, SRS, Puri Construction, Universal Group, ORS Infrastructures, Iris Abode Pvt Ltd, RPS, etc, have big projects in the area. BPTP has a major land bank of 2,000 acres here and has several projects here, like Park Floors, Park Grandeura, Princess Park, The Resort, and Park Elite Floors.
Puri Construction’s Puri Pranayam in Sector 82-85, KLJ Town Planners’ KLJ Espana, KLJ Greens, and La Vista in Sector 77, Era’s Redwood Residency in Sector 78, SRS Group’s SRS Residency in Sector 88 and SRS Royal Hills in Sector 87, RPS Group’s Savana in Sector 88, Omaxe Group’s Omaxe Spa Village and Omaxe New Heights in Sector 86, SPR Buildtech Ltd’s Imperial Estate in Sector 82,Umang Realtech’s Summer Palm in Sector 86, Universal Group’s Universal Greens and Iris Abode Pvt Ltd’s Golden Tulip in Sector 63, etc, offer premium homes, villas and independent floors with all the lifestyle facilities.
An official of HUDA says that they have plans to make Faridabad the best city of Haryana and have put in place a complete City Development Program (CDP), which will assure top-class infrastructure in this emerging city.
The forthcoming DMIC, which lies on NH-8, is a key factor that is attracting buyers and investors to this region.
National Highway 8 is one of the busiest highways in the country and it is talked about as the futuristic lifeline of India’s trade and industry. NH-8, which connects New Delhi with Mumbai and passes through Gurgaon, Jaipur, Ajmer, Udaipur, Gandhinagar, Ahmedabad, Surat, and Vadodara will anchor the 1,483km-long Delhi-Mumbai Industrial Corridor – thus, its potential as an industrial, commercial, and investment destination is obvious even to the layman. The growing commercial and residential investment avenues in the region covering a stretch of 15 km through Haryana present multiple options for investors, who may be looking for early-bird investment opportunities.
The NRI community has taken a keen interest and is investing in several realty projects that are under construction along NH-8; though the economy is very sluggish, once it picks pace, NH-8 will be among the regions that will give investors the highest returns. Seen in that perspective, one may consider it to be the safest place for investment.
The forthcoming 1,483km-long DMIC, which lies on NH-8, is a key factor that is attracting buyers and investors to this region.
The project is being developed by the government of India, in collaboration with the Japanese government, at an estimated cost of $90 billion dollars.
The Delhi-Mumbai Dedicated Freight Corridor, which will complement the DMIC and is planned to run 1,500km along NH-8, is expected to give a major boost to industrial and economic investments along the length of this corridor. The scale and scope of projects undertaken by the DMIC Development Corporation Ltd. (DMICDC) and the Haryana State Industrial and Infrastructure Development Corporation Ltd (HSIIDC) is massive. The HSIIDC officials believe that the growth in the next few years will put this region on the global business map.
The investment regions and areas being developed under the DMIC along the NH-8 include Manesar-Bawal Investment Region (MBIR) in Haryana and Khushkhera-Gurgaon-Neemrana Investment Region (KGNIR) in Rajasthan. These regions are now turning into multiple drivers of economy with a series of Centre-aided and standalone state government projects initiated in this region. It is expected that this investment zone would provide job opportunities to nearly 22 lakh people by 2017.
Several Special Economic Zones:
(SEZ) have been approved by the government of India along NH-8. These are now attracting foreign direct investment (FDI) in many sectors like real estate, information technology (IT and ITeS), automobile, glass technology, and services industries from Japan, S i n g ap o re, Malaysia, the US, Korea, China, etc. Honda Motors, Asahi, Saint Gobain, Musasi, etc, have already set up the mega automobile
and glass plants in the corridor.
Real Estate Development:
Many prominent real estate developers have launched multiple mega projects here. Falcon Realty Services is coming up with Global Eco City in this area. The proximity of this eco-friendly commercial and residential project to all the forthcoming investment regions in the area makes it ideal for investment.
The Manesar-Bawal Investment Region, which is to the southwest of Global Eco City, is turning into a mega logistic, automobile, and glass industry hub over 800 sq km. This region will include self-sustained industrial townships with world-class infrastructure, served by multi-modal connectivity to the domestic and international airport.
The Integrated Multi-modal Logistics Hub (IMLH) at Rewari is towards the western side of Global Eco City; it has a consumer base of 40 crore people of northern India! This hub is considered a major driver of economy and growth apart from being located at a strategic place connecting major areas. This project will also boost the development of nearby areas including Kasola and Garhi Bolni at Rewari, among another 16 adjoining villages.
Falcon Realty’s Global Eco-City project is being developed in ‘Khushkhera-Bhiwadi-Tapukra-Neemrana Investment Region at Kotkasim. Global Eco City project is at the centre of the development surrounded by seven satellite townships of Bawal, Tapukra, Neemrana, Khushkhera, Bhiwadi, Chaupanki, and Manesar.
Bhim Yadav, CMD of Falcon Realty Services, says: “We see a great future for the entire area as many MNCs from Japan, South Korea, France, Germany, and the US are setting up their base here, along NH-8. The demand for housing and social infrastructure is on the rise owing to these developments.”
Real estate developers are adopting innovative methods and bringing best-in-class townships with shopping centres, malls, multi-level parking, hospitals, schools, parks, and restaurants. They are positioning their products taking into account connectivity to national highways, main city and proximity to the airport and the railway station – better the location, higher the price.
The residential property prices on Southern Peripheral Road connecting to NH-8 have seen a remarkable appreciation over the past few months. This location holds great investment potential due to the enhanced connectivity that NH-8 provides to Manesar and Dwarka. Prices are also soaring in the new locations of Gurgaon like Dwarka-Gurgaon Expressway, Golf Course Extension Road, Sector 70, and Sector 78.
Developers like DLF, EMAAR MGF, Tata Housing, Raheja Developers, Godrej Properties, Avlon, Vatika, Falcon Realty, Vardhman Group, etc, have already launched mega projects in the area.
Some of the premium housing projects with world-class facilities are Godrej Properties’ Frontier, EMAAR MGF’s Emaar Palm Gardens and Emaar Palm Hills, Raheja Developers’ Raheja Revanta, DLF’s Ultima and Primus, Bestech’s Park view Ananda, Supertech’s Supertech Araville, Mapsko’s Mount Ville, Vipul’s Lavanya, Universal’s Aura, Vatika’s India Next, etc.
With the rise in housing demand along NH-8, developing regions like Bhiwadi, Dharuhera, and Neemrana are emerging as promising locations. With an investment of nearly Rs 3,000 crores in Bawal and Khushkhera (car plant of Honda Siel), and mega infrastructure projects like KMP Expressway, SEZ of Reliance, the DMIC, etc, the prospects of this entire belt are very bright. Navin M Raheja, CMD of Raheja Developers, says: “Dharuhera, which has emerged as one of the prime locations for living after Gurgaon and Manesar, has huge potential. It offers a promising future for real estate investment and its close proximity to Delhi accords best value for money on any deal.”
Vardhman Real Estate and Promoters has launched its first residential project, Springdale, in Dharuhera, along NH-8. Springdale offers smart architecture, which simply means more space and privacy.
Nikhil Jain, CEO of Ramprastha Group, says: “The realty sector has come a long way over the past decade. There was a remarkable growth in infrastructural facilities in all subsectors of realty industry in India. The development of townships and global eco-cities on NH-8 has brought in fresh investment from NRIs. Though the economy is not doing particularly well right now, once there is a turnaround, investments along NH-8 are sure to yield high returns.”
- The scale and scope of projects undertaken by the DMIC Development Corporation Ltd. (DMICDC) and the Haryana state industrial and infrastructure development corporation ltd (HSIIDC) is massive.
- The investment regions and areas being developed under the DMIC along nh-8 include Manesar-Bawal Investment Region (MBIR) in Haryana and Khushkhera-Gurgaon-Neemrana investment region (KGNIR) in Rajasthan.
On Monday, the government rolled out the promised “package of reforms” to boost the country’s exports. The commerce ministry notified the Amended Rules, 2013, for special economic zones (SEZs) launched with much fanfare over seven years ago.
However, real estate developers are not very enthused by the amended policy. The reason, they say, is not just policy, but several other factors that have stifled the growth of a sector, which posted growth of over 121 per cent in exports in 2009-10.
As per the amended policy, the minimum land requirement norms have been eased, graded scale for minimum land criteria has been introduced, an exit policy for SEZ units has been offered while minimum land requirement for setting up an IT/ITeS SEZs has been done away with.
The minimum area requirement for single-product SEZs has been halved to 50 hectares and that for multi-product SEZs to 500 hectares. The minimum land requirement norm for IT SEZs has been scrapped. They are now subject to only a minimum built-up criteria norm, which is 5 hectares for category B cities such as Jaipur, Ahmedabad, Chandigarh and Lucknow and 2.5 hectares for smaller cities and rural areas. According to the government, the incentive is aimed at pushing IT SEZs into cities with lower densities.
Sector-specific SEZs have also been given the option to add an additional sector for every 50 hectares of contiguous area added. This would allow sectoral SEZs to bring in similar or related sectors under the same zone. Further, SEZs being set up exclusively for electronics hardware, agro-based food processing, biotechnology, handicrafts, the minimum area required would be 10 hectares. The government has introduced agro-based food processing SEZs given the demands by agrarian states including Punjab and Haryana where land is very expensive.
However, despite the relaxed land requirement, analysts, developers and real estate sector watchers say that the move would not mean much in the existing economic scenario, especially with key legislation’s including the Land Acquisition bill, Real Estate bill, and Direct Taxes Code, pending with Parliament.
The Real Estate (Regulation and Development) Bill 2013 has been introduced in the Rajya Sabha. Housing minister Girija Vyas said the bill seeks to establish the Real Estate Regulatory Authority to protect the interest of consumers in the real estate sector. Vyas also said the bill is for regulation and promotion of the real estate sector and to ensure sale of plot, apartment of building, as the case may be, in an efficient and transparent manner.
World Bank to give India $100 mn loan for Housing Project.
The World Bank has signed an agreement with the Indian government to provide a $100 million loan to help low-income families secure housing loans. “The Loan and Project Agreements for World Bank (IDA) assistance of $100 million for low-income housing finance project were signed between Government of India/National Housing Bank and the World Bank,” the finance ministry said in a release. The objective of the project is to provide access to sustainable housing finance for low-income households to purchase, build or upgrade their dwellings, it added. Financing under the project aims to create incentives for lenders to focus on lower-income households through a net all-in reduction of the lenders’ cost of funds of about 200-300 basis points.
IMT Manesar is perfect for housing and commercial property.
IMT Manesar has emerged as a hub of industry-specific infrastructure, service ancillaries, commercial services, and an array of other essential services. The developing area is a perfect choice for trade towers, corporate offices, industrial units, and shopping malls. A flyover on NH-8, which links the residential zone with the industrial zone, has helped in making the city more alluring to end users.
The unique aspect of Manesar is the simultaneous development of residential complexes for both executive and non-executive staff. The Haryana State Industrial and Infrastructure development Corporation (HSIIDC) acquired 250 acres across the national highway and has allotted it to various units for building staff quarters there.
Residential properties in Manesar have registered an appreciation of 20-25% in their values. IMT Manesar is projected to have a shortfall of over 6.5 lakh housing units over the next two-three years, whereas the availability of authorized housing will only be around 70,000 units in the same period.
The price escalation of property here is bound to be steep. The new developmental plan for Gurgaon-Manesar Urban Complex has been formulated taking into consideration the projected growth of the city up to 2031.
Leading global brands like Toyota, Mitsubishi, Honda, Suzuki, etc, are making big investments in Manesar’s real estate. Also, the proposal to build an expressway to Jaipur is adding value to Manesar’s real estate. Most of the topnotch builders in India like DLF, Unitech, Raheja, Vatika, Amrapali, Reliance, etc, have already bought land banks on this stretch to develop townships.
With a projected population of around 40 lakh by 2020, Manesar is gearing up to become an ultramodern city. Property rates in Manesar have registered a great rise – from Rs 20-25 lakh per acre to Rs 1.10-1.40 crore per acre.
The rates of commercial properties in Manesar have increased by 35-60% in the last six months. Interestingly, residential properties in Manesar have also boarded on the boom bus, and have shown an excellent jump of 35%. Currently, three bedroom houses in Manesar are going for not less than Rs 2,500-2,700 per sq ft.
New Master Plan for Planned Development:
Gurgaon-Manesar Master Plan-2031 has a proposal for converting the major SEZ-designated lands into seven new residential and commercial sectors.
Master Plan-2021, which was published in 2007, conceptualized new development around special economic zones (SEZs) in Gurgaon and Manesar; but this term has altogether disappeared from the latest draft of Master Plan-2031. As a result, the new master plan drastically cuts the proposed area for urbanization to 32,408 hectares, from 37,069 hectares in Master Plan 2021. This despite the fact that projected the population in the new master plan has risen to 41.65 lakh from 37 lakh in MP-2021.
Amit Raj Jain, COO of Spaze Group, says: “The real estate market in Manesar has been growing at a crazy pace ever since several prominent MNCs decided to set up their establishments here. Manesar, which was earlier a small village, has now been transformed into an industrial and commercial hub over the past few years.”
Spread over 1,750 acres as an ultramodern integrated industrial park, IMT Manesar was a joint venture of the Haryana government and Japan. But, now, it has been taken over by the HSIIDC to be developed exclusively as an industrial area. Manesar has been developed in four phases. HSIIDC has developed 1,750 acres of land in Phase I, while work is in progress on Phase II (180 acres) and Phase IV (650 acres).
HSIIDC has allotted Phase III (600 acres) to Maruti Udyog Ltd for their expansion project. More than 1,50,000 people go to work in Manesar from adjoining places; the town has many factories, offices, hotels, and educational institutes. There are several sightseeing spots around the area, too, some overlapping with Gurgaon.
Manesar is 32 km from the IGI airport and has some of the best urban infrastructure in northern India. Located on NH-8, the area is well connected with Delhi, Jaipur, Ahmedabad, and Mumbai. To improve public transport further, plans have been made to extend the Delhi Metro to Manesar.
Construction on the 135.6km-long Delhi Western Peripheral Expressway, also known as Kundli-Manesar-Palwal (KMP) Expressway is in full swing. Once KMP Expressway is operational, Delhi will be relieved of the congestion of heavy night traffic, with the expressway acting as a bypass.
KMP Expressway, which will connect Sonipat district with Palwal in Faridabad district, has been divided into three sections of 45 km each. Three major camps at Kundli, Manesar, and Palwal have been established, supported by three ancillary camps at Jasaur Kheri, Badli, and Taoru.
Four flyovers have been proposed at places where the expressway will cross national highways, namely, NH-1, NH-10, and NH-8. Sixteen overpasses and underpasses at crossings on state highways and major district roads; seven overpasses, nine underpasses, and 27 underpasses at crossings on village roads; and 33 agricultural vehicular underpasses, 31 cattle crossing passages, 61 pedestrian crossing passages, four railway over-bridges, 18 major and minor bridges, cross-drainage works (culverts) at 292 locations, and two truck parking and four bus bays will also be constructed.
Impact of DMIC:
The 1,483 km-long Delhi-Mumbai Industrial Corridor ((DMIC)) is aimed at developing an industrial zone spanning across six states of India. The project will see major expansion of infrastructure and industry including industrial clusters and rail, road, port, and air connectivity in the states along the entire route of the corridor. The DMIC has received major boost with India and Japan inking an agreement to set up a project development fund.
The corridor will have six mega investment regions of 200 sq km each and will run through seven states – Delhi, western Uttar Pradesh, southern Haryana, eastern Rajasthan, eastern Gujarat, western Maharashtra; Manesar-Bawal is one of the investment regions selected for development in the first phase.
More than 60% of Haryana’s comes under the ambit of the ambitious DMIC project, which will extend up to 150 km on both sides of the alignment of Delhi-Mumbai Dedicated Freight Corridor. This would open a floodgate of opportunities all along NH-8, NH-2, NH-1, and NH-10 for developing industrial, urban and supporting infrastructure through public-private initiatives. Seven investment regions and 13 industrial areas have been planned along this corridor. HSIIDC has allotted 78 industrial plots in Bawal for medium and large-scale projects in last three years. According to the Gurgaon-Manesar Urban Complex plan, the proposed residential areas will be developed on neighborhood concept with a provision made for all community facilities and services within the sectors – on average, the net residential density of the area will be 250 people per hectare.
About 50 hectares has been earmarked in Sector 68B for providing housing to low- and medium-income group families. Around 215 hectares has been reserved for a university, which will be set up by the government or its agencies, in Sector 68. Around 135 hectares has been designated as a bio-diversity park. A 90 meter-wide road has also been proposed in the development plan, which will connect Gurgaon-Manesar Urban Complex up to Sohna.
Vijay Gupta, CMD of Orris Infrastructures, says: “Manesar will emerge as a hub of industry specific infrastructure, service ancillaries, commercial services, and an array of other essential services.”
Many developers like Eros and Amrapali Group have developed new business complexes at IMT Manesar. These have all the facilities to meet the business requirements of shops, offices, and visitors. Amrapali Group’s commercial cum corporate hub, on 6,804 sq meters in Sector 2, IMT Manesar, is opposite the Honda factory. DLF has planned a huge township in Manesar. The group has Express Greens I & II. Express Greens is around 500 meters from NH-8. Unitech has Karma Lakelands, which is offering ultra-luxury villas with an 18-hole golf course in Manesar. Vatika is developing Vatika Township offering plots and villas with modern amenities. Landmark Developers has Golden Heights, an exclusive township project in Manesar.
IMT Manesar is projected to have a shortfall of over 6.5 lakh housing units over the next two-three years, whereas the availability of authorized housing will only be around 70,000 units in the same period.
The new Master Plan-2031 has merged Gurgaon and Manesar, bringing in around 23,000 hectares of additional land for development, which is expected to cater to the housing needs of 21 lakh more people.
Gurgaon-Manesar is one of the fastest growing cities in the country. The new Master Plan-2031, which merged Gurgaon and Manesar, expands the existing city to create more residential units, social infrastructure like schools, hospitals, playgrounds, and physical infrastructure.
The new master plan will create accommodation for an additional 21 lakh people. This will bring in around 23,000 hectare additional land for development. In fact, as most of the land in Gurgaon was already developed, the new master plan has given a new lease of life to its development.
The new plan will also help in containing the prices in the city. In fact, in order to further improve the availability of affordable houses, the Haryana government has also approved a ‘high density policy’ in its comprehensive housing policy. Under this policy, development authorities like the Haryana Urban Development Authority (Huda) will now be empowered to increase the density of population in group-housing projects.
At present, the permitted population density is 80-100 people per acre, which has been increased to 100-120 people per acre. Now, developers can build more housing units per acre than they could have done earlier.
In order to increase the land under residential and other commercial development, the new master plan has de-reserved the land earmarked for special economic zones. The new plan has earmarked 16,000 hectares for residential purpose and 1,600 hectares for commercial purpose, 4,600 hectares for industrial areas, and 4,400 hectares for transport and communication facilities. Public utilities have been allocated 600 hectares, public and semi-public facilities 2,000 hectares, and open spaces 2,900 hectares.
Several new sectors along Dwarka-Gurgaon Expressway like Sectors 95A, 95B, 89A, 89B, 88A, 88B, and 99A have also been proposed. These sectors are ideal for premium residential development.
The new plan has indicated that residential areas would be developed along the neighbourhood concept; that is, there would be an adequate provision for all community facilities and services within the sectors.
The new plan has also proposed to develop connectivity within the Gurgaon-Manesar area, and to Delhi as well. Besides having connectivity with Delhi through roads like the 150 metre-wide Northern Peripheral Road (NPR) and the 90 metre-wide Southern Peripheral Road (SPR), the plan also included three major roads connecting Delhi and Gurgaon like Vasant Kunj to MG Road, among others.
There is a plan to develop intra-city Metro system in Gurgaon; Sector 56 and Sikanderpur will be connected by a Metro line of 6.5 km. A high-speed Metro service, Airport Express Link, between Sector 21 (Dwarka) and IFFCO Chowk (Gurgaon) has also been proposed.
The new master plan has also revised alignment of sector-dividing roads of Sectors 76-77, 84-85, 81-81A-open space, 92-open space, 92-93-94-95, and 112.
The road beyond Sectors 63A and 67A that ends up on Sohna Road will be extended. This road will work as a bypass of NH-8 in future and will relieve NH-8 and Sohna Road from heavy traffic congestion.
A 60 metre-wide road between industrial Sectors M3A and M4 will be further extended through the Aravali hills and the public and semi-public zones along the KMP up to NH-8. This will create a great loop which will provide commuters an option to avoid travelling on NH-8.
The sentiment on commercial real estate investment in Gurgaon is very favourable.
The mood of investors in Gurgaon’s commercial real estate is positive, as there is a sense of stability due to the recent policy adopted by the government to open up foreign direct investment into the retail sector.
The retail sector is forecast to grow handsomely after this announcement, and real estate will most certainly ride on back of this development.
Despite the disappointing economic picture, investor appetite for good quality real estate remains firm and is likely to continue to underpin capital values in prime locations like Golf Course Road, main Gurgaon Sohna Road, NH-8, etc.
These sectors will also directly benefit from the recently announced government policy to open up the country to more foreign direct investment.
Manish Agarwal, MD of Satya Group, says: “The occupier side of the market is a little more challenging with the flatter trend in occupier demand reflective of the more mixed macro picture.
“However, for the time being, rent expectations remains positive which may be partly linked to the subdued trend in development over the past few years.”
The NCR saw a significant decline in absorption, over 40%, in the first half of 2013 over the same period last year. Similarly, absorption in the second quarter of 2013, at 0.65 million sq ft, registered a decline of 17% compared to the previous quarter as occupiers remained cautious towards expansion and new space take-up.
Besides IT-ITeS and BFSI (Banking, Financial Services, and Insurance), telecom sector also registered healthy leasing activity during the quarter and contributed significantly to the total absorption. A total supply of 1.89 million sq ft was registered during the quarter, a q-on-q decline of nearly 4%. Both supply and leasing activity in the first half of 2013 marginally increased by 1% compared to the same period last year. The supply mainly constituted of commercial and IT buildings with no SEZ addition during the second quarter of 2013.
With slow supply additions and decline in leasing activity, the overall vacancy rate remained stable during the second quarter. Out of nearly 2.3 million sq ft of Grade A supply, which is expected to get added in the next quarter, 89% belongs to Gurgaon which is likely to take the vacancy levels of the micro market northwards.
The industry-wide cautious sentiment is expected to continue in the third quarter of the year with occupiers likely to evaluate relocation and expansion plans within the NCR.
Impact of Global Economics:
However, looking at the level of precommitments, corporate leasing activity is expected to improve soon. The bulk of the new supply is slated to enter the NCR market by early this year, primarily in Gurgaon, which may put a downward pressure on the rentals. On the other hand, rental values in locations across the CBD (central business district) and SBD (secondary business district) of Delhi are expected to register appreciation owing to anticipated office space demand and lack of fresh supply in these micro markets.
According to the latest RICS global commercial property survey, sentiment in real estate markets has been reasonably positive. In India, macroeconomic numbers for both industrial production and exports are showing a slightly better tone.
However, it is a little premature to be confident that this trend will prove to be sustainable in the long run. The better pattern for realty markets in the country is visible in the investment market, which is also starting to filter through to the occupier side as well.
In India, investment enquiries edged up and elicited a positive trend for the first time since 2011. Consequently, forward looking measures for expected transactions and capital values are also staying upbeat, spilling over from the positive results of the previous quarter.
Office market in Gurgaon:
Gurgaon contributes to nearly 43% of the new supply. Most of the IT- ITeS companies in Gurgaon are presently concentrated in DLF Cyber City while other locations like Sohna Road, Golf Course, and Golf Course Extension Road are essentially commercial and non-IT in nature. However, owing to constrained infrastructure, especially road network in DLF Cyber city, employees face several problems on a day-to-day basis including losing precious man-hours in traffic jams. Further, high real estate rentals for IT-ITeS space in DLF Cyber City have resulted in companies looking out for newer alternatives for office space.
According to a report of Cushman & Wakefield, Gurgaon is expected to see a sizable supply of 3.3 million square feet in the first half of this year, adding to the existing stock. Besides IT, non-IT sectors like consulting and BFSI are also expected to absorb the available spaces.
Hines, a globally networked company which is entering the Indian realty market for the first time, is developing Skyview Corporate Park on 21 acres in Sector 74A along NH-8, in partnership with the landowner, Shyam Telecom.
The master plan and design of the Skyview Corporate Park buildings has been created by Roger Soto, president/director of design for Odell Associates and former director of design for HOK’s Houston office. “The buildings will be among the first in India that meet a true international standard for Class A design and construction quality, and they will be LEED rated,” Yash Gupta, country head of Hines, said.
Office Space Absorption:
Gurgaon registered fresh office space leasing of nearly 0.60 million sq ft in the last quarter of 2012, amounting to 60% of the overall absorption in the NCR. Most of the transactions were seen in micro markets of DLF Cyber City, NH-8, Udyog Vihar, and Sohna Road. About 2.2 million sq ft of office space was absorbed in Q3 of 2012. This is much above the average quarterly absorption of the NCR market, which ranges anywhere between 1 million sq ft to 1.5 million sq ft. Some of the prominent transactions that took place in Q3 of 2012 were McKinsey, Ericsson, Income Tax Department, Samsung Electronics, Daffodil Software, Wipro, and KPMG. These constitute nearly 1.1 million sq ft of the total office space absorption. Considering the level of precommitments and the fact that transaction activity is typically conservative in the final quarter of any financial year, demand is expected to improve in the latter half of this year.
Despite the disappointing economic picture, investor appetite for quality real estate remains firm and is likely to continue to underpin capital values in prime locations like golf course road, main Gurgaon Sohna road, nh-8, etc.