Affordable housing will continue to be in focus in the second decade of the millennium, with the Delhi 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 indian real estate sector with affordable housing continuing to be in focus. The National Capital Region (NCR)of Delhi, in particular, will see a number of new destinations coming up. But, unlike the last decade when Delhi region did not contribute much to the housing development, the new decade will witness a large number of housing projects being developed here.
At the same time, a number of townships will come in the Delhi NCR region to meet the demand for housing and commercial space. The last decade witnessed an unprecedented rise in the activities in the sector. Not only did construction activity increase substantially, the prices also went up m a n i fo l d . The growth momentum was so strong that it could withstand the global financial crisis successfully, albeit with the help of the government’s stimulus package. RBI’s decision to reduce interest rates also helped in this regard. But, the main driving agent in the revival in the second half of 2009 was the developers’ strategy in building affordable houses. In this, builders built two- and three-bedroom apartments with lower specification at up to 40% lower prices than what they used to sell only a few months ago.
In 2010, we can expect to see some sustainability in the residential market as activity levels have improved. On the office market front, demand is expected to improve, although rentals are expected to remain flat in the medium term due to the forecasted surplus supply of office space.Delhi will emerge as the centre of planned development in the coming decade with the new Master Plan coming into effect soon. The huge land bank in Najafgarh in Southwest Delhi, Brijwasan and Chhattarpur in South Delhi, will be released under the new Master Plan of Delhi. Similarly, a large tract of land will also come up in the marketplace in North Delhi. He says that thousands of acres of land are likely to be released under the new Master Plan Delhi. Most heartening thing is that unlike in the past, the new decade will see development in these areas by private developers. This will bring in development of modern condominiums with amenities like swimming pools, gyms, security systems and car parking lots.
As 2000-2009 saw the development of areas like Indira Puram, Vaishali, Vasundhara and Crossings 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, III and V in Gurgaon and Nahar Paar area in Faridabad. Many of these areas were unheard of, before 2000. Similarly, 2010-19 will see a hectic development of new areas like Noida-Greater Noida Exressway, Crossings Republik, Raj Nagar Extension 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. In Gurgaon, the new areas that are likely to come up are Sohna Road, Golf Course Road Extension and Pataudi Road. Sonepat is also likely to emerge as a new destination for residential market.
under the new Gurgaon-Manesar Master Plan, around 1,50,000 residential units will be developed in the area. Out of this, around 10,000 are at the implementation stage by various developers. The rest will be developed in the coming years. Besides this, the introduction of the concept of ‘township’ will expedite the construction of residential units. The development of townships will allow private developers to share the onus of development of infrastructure. So far, only the government agencies used to develop infrastructure, which results in a slow pace of development. With this, the supply of housing units will get expedited.
The good news is that this huge number of units of housing prices will stabilize. Global consulting firm of real estate, Knight Frank, in his report on the residential market in India said that, given the relative stability of the markets around Delhi and the offer is expected in this part of NCR until 2011, it is reasonable expect residential prices in New Delhi to remain relatively stable or even increase if the demand in the region increases significantly due to better internal connectivity.
The report further says that several infrastructure initiatives across the NCR are expected to boost residential options through increased connectivity and traffic congestion in certain places. If consumers are attracted to small markets throughout the NCR because of better infrastructure, congestion back of the demand in the region could ease the upward pressure on prices in places like Gurgaon and Noida, which are becoming options housing increasingly attractive.
The Commonwealth Games 2010 have also played an important role in improving connectivity to different parts of the city by subway. In remote areas like Greater Noida, Faridabad, Kundli and Gurgaon is likely to be connected by the metro, travel time to these places will be drastically reduced