Infrastructural Developments 2014 and their Impact: North India

The real estate sector is stagnant, if various reports and price trends are to be believed. Yet it is one asset class that attracts almost everyone when it comes to investments. Of late, real estate has come into focus—regulations that promise to bring in transparency are being introduced, and indices that measure prices and supply are coming up. In an interview, Anshuman Magazine, chairman and managing director, CBRE South Asia Pvt. Ltd, talks about how the changes taking place will shape the future. Edited excerpts:

Real estate in India is soon to be on a fast track. Here are the areas which will be most impacted:

Gurgaon & Noida:

A host of infrastructure projects in these locations are planned and several of them have already been implemented. These are definitely going to alter the real estate scenario of the locations within their impact zone.

Projects in the vicinity of NCR:

  • Dwarka Expressway
  • Kundli Manesar Palwal Expressway
  • Southern Peripheral Road — connecting Gurgaon & Manesar
  • FNG Expressway for Faridabad, Noida & Ghaziabad
  • Rapid Metro Rail Gurgaon phase 1 &2
  • Noida Metro
  • Yamuna Expressway

Dwarka Expressway:

In progress. Also known as the Northern Peripheral Road (NPR). It has already witnessed heightened activities along the same with property prices already appreciating at 20 – 30% CAGR since its inception. Sectors 100, 102, 103 and 109 amongst others up to sector 112 have seen increased pace of developments in the vicinity. This peripheral road will be instrumental in decongesting the traffic load on the NH8 and thereby add a new location to the map of real estate developments. The prevailing ticket size is close to INR 1.0 Cr for apartments and villas priced at INR 2.5 Cr and above

Kundli Manesar Palwal Expressway (KMP):

The stretch of 10 Kms from the Hero Honda Chowk has witnessed a significant no of developments with a few projects already handed over. The sectors 37D and 89 have seen significant appreciation but the projects in the latter are in the advanced stages and nearing completion. The prevailing price is INR 60 – 80 lacs. However, the social infrastructure is highly deficient and the prospective residents are at a dilemma as education, healthcare and daily needs are yet to arrive. The Manesar to Palwal stretch is envisioned as the logistics hub which will be home to ware houses and logistic parks.

Southern Periphery Road (SPR):

It is expected to connect the millennium city, Gurgaon to the industrial hub of Manesar. Sohna Road and the areas adjoining the same such as the Golf Course Extension and Tikri have already witnessed several commercial and residential projects for the mid-ranged to the high end segments. The appreciation recorded is at a CAGR of over 30%.

Faridabad, Noida & Ghaziabad Expressway (FNG):

This is under construction and is expected to improve connectivity of the 3 satellite towns of NCR.

Rapid Metro Phase 1 & 2:

Phase 1 is already complete which has enhanced the accessibility to DLF Cyber City, the prime business district of Gurgaon. The phase 2 is proposed to connect the Golf Course road and connect the 2 major business districts. This the residential pockets on the Golf Course road and the group housing projects in the sectors 55 & 56 of Gurgaon are likely to gain considerably. The ticket size is going to be over 1.5 to 2.0 Cr

Noida Metro:

The extension of the Noida Metro to Greater Noida will unlock the latent potential of the real estate developments in the area. Noida has always seen to trail the trends in Gurgaon but such an initiative is likely to catalyse the already populous sectors along the way and pave way for significant commercial developments and activities as the connectivity to the other parts of the National Capital tends to improve and ease off.

Yamuna Expressway:

This area is very nascent as of now but is definitely promising. The Formula 1 Circuit and the night safari along with the connectivity to the Agra and Western Uttar Pradesh are capable to raise the position of the projects in the near future. The prices are very appealing today at sub INR 3,000 psf and are capable of doubling in the next 2-3 years.

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