Traditionally, Delhi’s residents preferred single-floor independent houses. This trend is fast catching up in Gurgaon and Haryana as well. It will be interesting to see whether the opening of registration for single floor/builder floors, in Haryana, will change the real estate market.
It is an age-old debate between high rise and low rise. Delhi residents gave a wholehearted thumbs up to the latter. They prefer staying in single floors to multistory apartments having modern amenities like 24-hour water, power backup and round-the-clock security. According to the provisions laid down by the Delhi government, builders can develop four stories on each plot and can sell each floor with independent registration. With high rise residential development still few and far between and restricted largely to cooperative group housing societies, the volumes are not so large in the capital. But, as in everything else, this preference is spilling over to adjoining Gurgaon and Faridabad.
Indian cities have traditionally been low rise in nature. Even when cities developed, it was plotted development that first took place. According to Sanjeet Sharma, a South Delhi based realtor, investors prefer builder floors as they have more carpet area and they are more spacious and comfortable to live in. End users can build their floors according to their budget and their daily needs. He also adds, “New upcoming builder floors also offer good parking facilities, which is an important factor in Delhi. People, who do not like to live in multistorey apartments having a number of floors, purchase builder floors. The price range for a 200 sq yard (3BHK) builder floor apartment in Green Park, South Extension and Hauz Khas is between Rs 1.5-2 crore.”
Another market source from Rohini, says, “In Delhi, builder floors are more in demand. New societies are developing with newly constructed floors that provide all modern facilities. The business class, NRIs and upper working class of Delhi prefer living in builder floors. The cost of a 2BHK builder floor, of size 107 sq yard, is approximately between Rs 60 and Rs 80 lakh.” Five years ago, when Haryana government banned the registration of builder floors/single floors, end users became insecure and stopped investing in builder floors. It is estimated that there are approximately 30,000 singlefloor units in Gurgaon, which are still not registered. It was due to this reason that in Gurgaon demand for builder floors dropped significantly.
In May 2009, the government of Haryana again started the registration of builder floors. As a result, many new projects coming up in Gurgaon and Faridabad with a focus on builder floors. Developers are now providing registered builder floors.
In Gurgaon, a number of developers have also started projects having builder floors. The Vatika Group has launched Emilia Floors, Isris Floors and Primrose Floors, whose sizes are 780-1,400 sq ft, in the range of Rs 21-44 lakh. The plan was for 1,400 units, all of which have been sold out.
According to Faridabad based realtor, “In Faridabad, builder floors have always been a trend. Some societies having builder floors are Green Field, Ashoka Enclave, Spring Field and Sainik Colony. New projects coming up in Neharpar area also have builder floors. The demand for builder floors is still there, but investors are not very secure as they are not sure if Haryana government will continue with this decision in the long term.”
According to a Noida based realtor, “Government does not register independent floors in Noida, and neither are they in demand. End users prefer investing in either multistorey apartments or individual bungalows.” He further adds that the reason for preferring multistorey apartments or individual bungalows is that there is still a lot of residential space available in Noida. Secondly, plot values in Noida are very high, so developers do not prefer builder floors as, according to them, they are a less profitable business.”
Independent floors are doing good business in Delhi and if this trend can hit Gurgaon and Faridabad market then the day is not far when builder floors will also be more in demand than multistorey apartments in the NCR region.