Enhanced connectivity to far-flung Delhi NCR areas will improve the supply of residential real estate leading to a salutary impact on prices.
Real estate market is back on rails after witnessing a slowdown owing to global crisis in financial markets, which started in September 2008 and affected overall economic activity across the world. After a decline in the second half of 2008-09, construction activities are on revival path in the country, with a healthy growth of 8% in 2009-10 projected for the economy rubbing off onto real estate sector as well. As economy is likely to further pick up in 2010-11, when growth is expected to be close to 9%, demands for real estate, including residential and office space, should improve.
As for national capital region (NCR), the scene is set on a different plane altogether – it was never this good, ever! In order to prepare the city for October 2010 Commonwealth Games, government – central, state and all the assorted municipal civic agencies – have pulled out all stops to give it a complete makeover. Particularly, the intra-city connectivity is witnessing a never-before improvement. Widening of major roads and de-congestion of other main roads through construction of a series of flyovers has already begun in earnest and will bring down travel time within the city. For example, a series of underpasses and flyovers on Yamuna Pushta and ITO Chungi has remarkably improved connectivity of trans-Yamuna region with Central and other parts of Delhi.
This has reduced travel time from Noida, Mayur Vihar, Patparganj, Shahdara, and other parts of East Delhi to Central Delhi like IATO, Central Secretariat and Connaught Place considerably. It is not Delhi administration alone, but authorities of various other constituents of NCR like Noida, Ghaziabad, Meerut, Faridabad, Gurgaon and Sonipat, which are working overtime to improve connectivity of their areas with other parts of NCR. Kundli-Manesar-Palwal (KMP) and Kundli-Ghaziabad-Palwal (KGP) Expressways are major projects in this endeavour. The alignment of KMP Expressway, which is also known as western peripheral expressway, takes off from National Highway 1 near Kundli, crosses NH-10 at West Bahadurgarh, crosses the NH-8 near Manesar and finally joins NH-2 near Palwal. It passes through Gurgaon, Mewat, Rohtak, Jhajjar and Faridabad, which top urban growth in NCR.
On the other hand, KGP expressway, also known as eastern peripheral expressway, provide signal-free connectivity between Ghaziabad, Faridabad and Palwal. Authorities are also working to develop a number of new roads inside the city. One such road is Canal-bank Road along Hindon canal, which will connect Noida, Mayur Vihar, Indirapuram, Vaishali and Vasundhara to Ghaziabad directly, bypassing Mohan Nagar. This new road has provided added connectivity to upcoming areas like Raj Nagar Extension in Ghaziabad.
Similarly, a new bridge across Hindon river, near Sector 75 in Noida, will give easy access to new upcoming townships like Crossings Republik. This will not only reduce distance between Crossings Republik and Noida, but also enable residents to avoid travelling through over-loaded NH-24.
Construction of Badarpur flyover on Mathura Road will help residents of Faridabad and will improve connectivity between Faridabad and Delhi. This will help improve attractiveness of Naharpar, a new upcoming area in Faridabad. Faridabad authority is also working to develop a new road to connect Faridabad and Delhi near Pushp Vihar.
Upgradation in connectivity will not only help improve traffic flow and reduce travel time, but will go a long way in solving housing problems of a large section of middle class in the country. First of all, this will bring huge chunk of areas, which were not developed so far because of poor connectivity, into the city’s mainstream and spur development of residential units there. A middle-class family having an income of Rs 4 lakh will find it difficult to spend a large amount of money on commuting after paying EMI for a house.
To enable these people to buy their own house in these far-flung areas, it is imperative that a cheap and efficient public-transport system is developed so that they can easily go to the city to work. At the same time, availability of land for construction will lead to increase in supply of residential and commercial units in the city. This will have a salutary impact on prices of real estate. As supply improves, prices will remain under control. Improved connectivity to far-flung areas will lead to development of new townships in the current decade. Some notable townships likely to become residential hubs in the next 10 years are Crossings Republik, Raj Nagar Extension, Naharpar, and a large number of sectors in Noida and Gurgaon, which are considered to be remote at present