Tag Archives: Delhi-Mumbai Industrial Corridor

DMIC a catalytic project for Noida’s realty growth

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DMIC, Delhi-Mumbai Industrial Corridor, Track2Realty, Track2Media, Indian real estate, Indian realty news, Property newsTrack2Realty Exclusive: The increasing shift of corporate focus towards Noida has been a matter of both research and speculation in the region. While the critics would like to point out that the shift of the Indian business community and the Multi National Companies (MNCs) have been more due to recent economic slowdown that made the scale of economy unviable in the high rental destinations like Gurgaon, the optimists within the built environment would prefer to look at the traction points of the city.

If Noida has been scaling up on the corporate wish list in the last few years it definitely cannot be just due to lesser capital values and rental yields, compared to established PBDs (Peripheral Business Districts) of the Delhi-NCR.

As a matter of fact, the very fact that the large developers with proven track record of commercial real estate, even in prime market of Gurgaon are today foraying into Noida’s commercial realty tells a different tale altogether. There are multiple demand drivers for the commercial real estate in the city with better infrastructure been icing on the cake. Of course, Noida remained a late mover in the segment due to the fact that the MNCs preferred Gurgaon due to an international airport in the vicinity; reasons why the developers also opted for more commercial projects over there.

The point is what has changed of late that makes the fortunes of commercial real estate change in the city. Analysts point out that while the better physical infrastructure of the city was always tempting, added to the emerging better social infrastructure, two factors have changed the outlook of Indian corporate sector towards the city.

Everyone seems to have realised that sooner than later an international airport that has for long been proposed at Dadri, close to Noida is going to be a reality. More importantly, the upcoming Delhi Mumbai Industrial Corridors (DMIC) promises to open the floodgates of new investment opportunities in the region and is expected to be that catalytic factor which promises to offer investors a gold mine once the project is over.     

Referred as the most over ambitious infrastructure project in India and declared as one of 100 innovative global projects by consultancy firm KPMG, DMIC, a joint venture with Japan, the USD 90 billion infra project covering an overall length of 1483 KMs between the political capital and the business capital of India, i.e. Delhi and Mumbai, is poised to redefine the urban centres in the six States that it passes through— U.P, NCR of Delhi, Haryana, Rajasthan, Gujarat and Maharashtra. Starting from Jawaharlal Nehru Port near Mumbai the industrial corridor will have end terminal at Dadri, close to Noida.

Property developers and analysts in this part of the world believe in anticipation of DMIC Delhi-NCR in general and Noida in particular is fast emerging as the epicentre of increased financial activity and the multinationals now prefer to make their base over here. The Noida market will be more beneficial than other parts of the Delhi-NCR due to better connectivity, infrastructure and overall lack of space constraint. Since the growth of the real estate is directly linked to the overall economic development, the industrial corridor is poised to be the growth driver in the true sense of the term.

Moreover, what makes DMIC project unique is the fact that it will create a level playing field in terms of the growth corridors across the regions it has been running into. Of course, Noida is expected to gain more out of it, but it will lead to holistic growth of trade, economic activity and hence real estate in the region.

Geetambar Anand, CMD of ATS Group believes the DMIC is expected to help the industries in six states – including Uttar Pradesh, Rajasthan, Maharashtra, Gujarat, Haryana and Madhya Pradesh. He reminds Dadri-Noida-Ghaziabad has been chosen to be developed as an investment region covering an area of 200 sq km east of Yamuna Expressway Industrial Development Authority targeting a population of two million, the proposed corridor shall have deep positive impact in the region especially on the Noida-Ghaziabad- Greater Noida market by having Dadri as the terminal node.

Rattan Hawelia, Chairman of Hawelia Group maintains the growth of Noida market in general and its commercial property in particular should not be seen in isolation. According to him, DMIC will be a game changer for the very fact that it will not only give boost to the Small & Medium Enterprises (SMEs) but also connect the tier-II and III cities along the stretch to the major cities. This free flow of goods and services will create a level playing field and benefit cities like Noida which has for long been striving to attract the corporate spotlight.

“The 12 National Investment and Manufacturing Zones (NIMZs) along the DMIC will boost the manufacturing sector and increase its contribution in the Indian economy to 25 percent by 2022. This in turn will create jobs, bring about socio-economic parity among states and as a result boost demand for housing. DMIC coming close to Noida will definitely catalyze into transforming the real estate because creation of job will equally be aided by the economic development of the city which in turn will see the demand for more housing and quality office and retail space,” says Hawelia.

Abhay Kumar, CMD of Grih Pravesh Buildteck believes since the Noida market offers land at a comparatively cheaper rate, developers will have an incentive to build affordable housing. According to him, the government needs to simultaneously speed up approval process and facilitate the sector. On the back of growing habitation and increased residential space, the development and demand for commercial space is inevitable. Also, growing income level and increased disposable income will see more demand for commercial space.

“The doubt according to me is not about the potential and possibilities of the Noida market once the DMIC is completed, but I also have a caveat here. What is all the more challenging is the supply side of real estate, failing this Noida market will see very high appreciation and hence lose its competitive edge vis-à-vis neighbouring markets like Gurgaon. Till now it seems to be going in a time bound manner and in fact the state governments are actually vying with each other to be first off the block. An example of the positive spinoff of DMIC is commercial property in Noida which has suddenly high on the wish list of the corporate sector,” says Abhay.

R K Arora, CMD of Supertech maintains that the corridor will fuel never-before infrastructural growth in the region. According to him, with the commencement of DMIC, the Noida market will see a huge demand in both residential as well as commercial space. Since, Dadri-Noida-Ghaziabad has been chosen to be developed as an investment region and is expected to cover an area of 200 sq km with targeted population of two million.

“The DMIC project is expected to create close to 12 million jobs in the six states and it will attract numerous MNCs across the globe giving developers an opportunity to build realty space for customers. DMIC will be an essential component of India’s future economic development. We expect that DMIC will be developing as the global manufacturing and trading Hub in partnership with private organization,” says Arora.

There is a general feeling within the built environment of Noida real estate that DMIC will open the floodgates of economic opportunities, if things as proposed and projected are executed accordingly. Since the development of new cities and residential township will lead to an urgent need for commercial and trading activity, Noida is poised to attract a sizeable investment. It will have a chain effect on the economy of the region and there would be intense requirement for quality commercial spaces for both offices and shopping complexes to support it. The growth of the residential market is hence a foregone conclusion and collective the city will grow holistically.

Industrial corridor the game changer for Mumbai realty

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DMIC, Delhi-Mumbai Industrial Corridor, Track2Realty, Track2Media, Indian real estate, Indian realty news, Property newsTrack2Realty Exclusive: Prophets of doomsday in Mumbai who till only recently have written off the growth of the city and its realty market due to saturation and infrastructural bottlenecks are today very apprehensive lot. The proposed industrial corridors promise to open the floodgates of new investment opportunities and make them eat their own words. Mumbai which has been facing stiff competition with certain other emerging markets is expected to redefine the financial capital of the country once the first corridor Delhi-Mumbai Industrial Corridor (DMIC) project is over and investors find avenues like gold mine on the ground.

Referred as the most over ambitious infrastructure project in India and declared as one of 100 innovative global projects by consultancy firm KPMG, DMIC, a joint venture with Japan, the USD 90 billion infra project covering an overall length of 1483 KMs between the political capital and the business capital of India, i.e. Delhi and Mumbai, is poised to redefine the urban centres in the six States that it passes through— U.P, NCR of Delhi, Haryana, Rajasthan, Gujarat and Maharashtra.

There is no denying this high-speed connectivity between Delhi and Mumbai offers immense opportunities for development of an industrial corridor along the alignment of the connecting infrastructure. Urban planning experts are wondering whether the efforts to build a strong manufacturing base, quite like what Japan did after World War II, is destined to change the way Indian metro cities in general and Mumbai in particular are being seen—decaying.

Amitabh Kant, CEO and MD of Delhi Mumbai Industrial Corridor Development Corporation (DMICDC) seems to be bullish when he says that the manufacturing hubs that the DMIC is creating will be critical to future growth. It is among the key components of the National Manufacturing Policy (NMP) that aims to raise the share of the manufacturing from 16 per cent of GDP to 25 per cent within a decade.  The NMP would be a key enabler for DMIC. It is expected to create 10 crore new jobs by 2022.

Not only this, the icing on the cake of Mumbai market is the fact that buoyed by rapid progress of the Delhi Mumbai Industrial Corridor project, Finance Minister P Chidambaram has announced in the 2013-14 budget two more industrial corridors between Bangalore and Chennai and Bangalore and Mumbai. Union Commerce Minister Anand Sharma later confirms that the government has agreed, in principle, for a feasibility study of the proposed Mumbai-Bangalore industrial corridor and the government is working on terms of reference of the proposed corridor.

Mumbai property watchers believe industrial corridors will definitely help develop new industrial cities as ‘Smart Cities’ and also provide a boost to the infrastructure sector. Such projects will help in expanding Mumbai’s manufacturing and services base. Industrial corridors have the potential to provide a major impetus to planned urbanisation. Such corridors will help develop infrastructure linkages such as pioneer plants, assured water supply, high capacity transportation and logistics facilities. Also, industrial corridors will provide employment to the local population. Besides reviving the real estate sector in Mumbai, industrial corridors will also provide a boost to the city’s economy. 

Lalit Jain, CREDAI Chairman and CMD of Kumar Urban Development agrees that industrial corridors will change the landscape of the towns and cities that lie along their alignment. For instance, DMIC will help build smart cities that are at par with international cities. It will develop infrastructure in at least seven cities spread across six states. Development of such a corridor will require townships and commercial establishments to be built along the corridor. Thus, there will be an increased trading activity between these cities, and this will help generate demand for commercial and residential real estate projects in the corridor. So, the real estate sector in general stands to benefit significantly with the development of industrial corridors.

“Being the financial capital of the country, Mumbai will always have that ‘extra edge’ as compared to other cities lying on this corridor. Development of infrastructure on this route will help provide a boost to the city’s economy. Trade and commerce in the city will increase with the development of the corridor. Also, the city will attract foreign investments and attain sustainable development. So, the DMIC will only help Mumbai consolidate its position as the numero uno city and real estate stands to gain,” says Jain.

Gaurav Gupta, Director Omkar Realtors & Developers maintains Mumbai is truly an international city and a hub of social and economic development. The DMIC and the BMIC (Bangalore-Mumbai Industrial Corridor) will surely increase connectivity in a substantial way. The real estate market on the whole will increase manifold and Mumbai would possibly reap the benefits of this extended real estate and infrastructure boom.

“An iconic international city like Mumbai which was once at the peak of industrialization, is dynamically evolving with expansion and infrastructure development. The industrial corridors which are a being planned across the length of the country can be seen as another way of allowing investment flow to the concerned cities and towns in the path. The development of these cities will tend to have a spiral effect on the real estate market as well which would definitely add to the natural growth of the city. The key, however, lies in expediting the execution of infrastructure projects and we hope that the Cabinet Committee on Investment (CCI) would help achieve this objective,” says Gupta.

Not that the Maharashtra Government is not aware of the lost ground and the opportunities that has been thrown open with the proposed industrial corridors. And hence it has taken many steps as per Package Scheme of Incentives and it falls under D+ industrial zone, an impetus to the IT industry. It has also setup several state-of-the-art IT parks within the state, Special Economic Zones, Specialized Industrial Parks, Floriculture Park – Pune, Specialized Food Parks, Specialized Food Parks, Specialized Food Parks and many such incentives have been taken. However GOM has been little slow than other states resulting in other states developing faster.

Diipesh Bhagtani, Executive Director, Jaycee Homes believes it will not only provide a boost to commercial real estate in Mumbai, but it will also spur other areas of real estate like residential, retail and hospitality. Any infrastructural development activity always has a ripple effect that is reflected in demand for property. According to him, with this corridor connecting Mumbai with Delhi, one can expect a healthy growth in the real estate sector in particular and economy of Mumbai in general.

“The movement of goods and people between cities will enhance trade and commerce. It will also reduce the time taken to ply goods between two cities. Industrial corridors also enhance business opportunities for the people of the states. There will be decongestion in all the states. This increased activity will spur development along the corridor, resulting in demand for property for residential, commercial, retail and hospitality sectors. This corridor will help small and medium scale industries to develop, thus boosting demand for residential and commercial space,” says Bhagtani. 

This high-speed connectivity between Delhi and Mumbai or Mumbai and Bangalore offers immense opportunities for development of an industrial corridor along the alignment of the connecting infrastructure. The vision is to create strong economic base in this band with globally competitive environment and state-of-the-art infrastructure to activate local commerce, enhance foreign investments, real-estate investments and attain sustainable development. In addition to the influence region, these corridors would also include development of requisite feeder rail/road connectivity to hinterland/markets and select ports along the western coast. And for the critics of Mumbai’s growth, it is time for a break.

Delhi-Mumbai Industrial Corridor (DMIC) and other proposed corridors promise to change the Indian urban landscape opening floodgates of economic opportunities when it is completed. That “when”, however, is a big question mark. It is not just about the timing, but it is also a case of mindset where states need to get their act together as some basic issues are yet to be ironed out. While the over ambitious and innovative DMIC faces execution bottlenecks, one keeps the fingers crossed that it is not destined to meet the fate of the SEZs in India.

DMIC Stats

Investment—USD 90 billion

Length—1483 KMs between Delhi and Mumbai

Covered States—U.P, NCR of Delhi, Haryana, Rajasthan, Gujarat and Maharashtra

End to End Terminals—Dadri in the National Capital Region of Delhi and Jawaharlal Nehru Port near Mumbai

Infrastructure Creation—Nine Mega Industrial zones of about 200-250 sq. km., high speed freight line, three ports, and six air ports; a six-lane intersection-free expressway connecting Delhi and Mumbai and a 4000 MW power plant

Jobs Creation—10 crore by 2022

DMIC a catalytic project for Delhi-NCR realty growth

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By: Ravi Sinha

DMIC, Delhi-Mumbai Industrial Corridor, Track2Realty, Track2Media, Indian real estate, Indian realty news, Property newsTrack2Realty Exclusive: Against all the prophecies of doomsday in the realty market, Delhi-NCR has not only grown in the last four-five years, but also has been among the best performing markets in the country. The growth has been slow but steady and analysts believe it is time the property market of Delhi-NCR needs a catalyst to put it on the fast forward mode of growth.

This, of course, demands fast paced economic development since a growing economy and trade has a domino effect on the overall property market. The proposed Delhi Mumbai Industrial Corridors (DMIC) that promises to open the floodgates of new investment opportunities is expected to be that catalytic factor which promises to offer investors a gold mine once the project is over.

Referred as the most over ambitious infrastructure project in India and declared as one of 100 innovative global projects by consultancy firm KPMG, DMIC, a joint venture with Japan, the USD 90 billion infra project covering an overall length of 1483 KMs between the political capital and the business capital of India, i.e. Delhi and Mumbai, is poised to redefine the urban centres in the six States that it passes through— U.P, NCR of Delhi, Haryana, Rajasthan, Gujarat and Maharashtra.

There is no denying this high-speed connectivity between Delhi and Mumbai offers immense opportunities for development of an industrial corridor along the alignment of the connecting infrastructure. Urban planning experts are wondering whether the efforts to build a strong manufacturing base, quite like what Japan did after World War II, is destined to change the way Indian metro cities in general and Delhi-NCR in particular which is being seen as the emerging financial capital of India.

Amitabh Kant, CEO and MD of Delhi Mumbai Industrial Corridor Development Corporation (DMIDC) seems to be bullish when he says that the manufacturing hubs that the DMIC is creating will be critical to future growth. It is among the key components of the National Manufacturing Policy (NMP) that aims to raise the share of the manufacturing from 16 per cent of GDP to 25 per cent within a decade.  The NMP would be a key enabler for DMIC. It is expected to create 10 crore new jobs by 2022.

Property developers and analysts in this part of the world believe North India in general and Delhi-NCR in particular is fast emerging as the epicentre of increased financial activity and the multinationals are preferring to make their base over here. The proposed Delhi Mumbai Industrial Corridor will take it forward to the next level where North India will be more beneficial than the Western part of the country due to better connectivity, infrastructure and overall lack of space constraint.

Since the growth of the real estate is directly linked to the overall economic development, the industrial corridor is poised to be the growth driver in the true sense of the term. Moreover, what makes DMIC project unique is the fact that it will create a level playing field in terms of the growth corridors across the regions it has been running into. Of course, Delhi-NCR is expected to gain more out of it, but it will lead to holistic growth of trade, economic activity and hence real estate.

Rohtas Goel, CMD of Omaxe asserts that the 12 National Investment and Manufacturing Zones (NIMZs) along the DMIC will boost the manufacturing sector and increase its contribution in the Indian economy to 25 percent by 2022. This in turn will create jobs, bring about socio-economic parity among States and as a result boost demand for housing. DMIC crosses through 6 States with an investment zone in each State. It will catalyze into transforming the real estate because creation of job will equally be aided by the economic development of smaller cities which in turn will see the demand for more housing.

“The empowerment of the people in tier II and III cities will be furthered by more infrastructure development that State Governments have begun to address. Since these cities offer land at a comparatively cheaper rate, developers will have an incentive to build affordable housing. The government needs to simultaneously speed up approval process and facilitate the sector. On the back of growing habitation and increased residential space, the development and demand for commercial space is inevitable. Also, growing income level and increased disposable income will see more demand for commercial space,” says Goel.

However, Pankaj Bajaj, Managing Director, Eldeco Infrastructure has a caveat here when he says the DMIC is an ambitious project with a grand vision. It has the potential to transform not only the affected area but also a large catchment. Just like other large projects in the country, there is always the danger of it getting delayed with land acquisition issues, environment clearances etc. On the other hand there is an example of Delhi Metro where a world class project has been successfully completed in a time bound manner and has actually changed the landscape of Delhi.

“DMIC is more challenging in that sense as not only political will at the Centre is required but also the cooperation of various state governments. But till now it seems to be going in a time bound manner and in fact the state governments are actually vying with each other to be first off the block. An example of the positive spinoff of DMIC is Neemrana where the real estate prices have appreciated more than 50% in the last 12 months and are likely to appreciate even more this year,” says Bajaj.

As a matter of fact, Neemrana is a major destination on the DMIC and already a vast area has been designated for development by DMIC. Large scale investments, both in industries and in the real setae space, are happening here in the anticipation of the DMIC project. These small non-descript destinations of Delhi-NCR may soon turn out to be ‘smart cities’ once the DMIC thrown open new investments and infrastructure opportunities.

Nikhil Jain, CEO of Ramprastha Group believes since the first phase of DMIC will pass through Delhi NCR region, so the region will get first mover advantage. Proximity with the National capital and central location of the region will again be an added advantage. According to him, in short run Delhi-NCR will continue to hold the numero uno position of property market.

“DMIC will open the floodgates of economic opportunities, if things as proposed and projected are executed accordingly then with development of new cities and residential township there would be an urgent need for commercial and trading activity, as every segment is interdependent on each other. Following which there would be intense requirement for quality commercial spaces for both offices and shopping complexes to support it holistically. Plans to develop integrated township and model cities to support them within the DMIC will further fuel the need for heavy commercial activity to support the residential as well as office requirements,” says Jain.

Urban planning experts even maintain that DMIC is eventually going to create a level playing field among the six states that the industrial corridor crosses over. After all, DMIC cannot be seen as only a highway project. Various industrial cities, townships will come along the industrial corridor across the states. These will bring holistic development bringing all the states at par in due course. DMIC will act as an artery connecting smaller cities and towns with world class infrastructure. This eventually will have a domino effect on the established property locations of Delhi-NCR.

DMIC Stats

Investment—USD 90 billion

Length—1483 KMs between Delhi and Mumbai

Covered States—U.P, NCR of Delhi, Haryana, Rajasthan, Gujarat and Maharashtra

End to End Terminals—Dadri in the National Capital Region of Delhi and Jawaharlal Nehru Port near Mumbai

Infrastructure Creation—Nine Mega Industrial zones of about 200-250 sq. km., high speed freight line, three ports, and six air ports; a six-lane intersection-free expressway connecting Delhi and Mumbai and a 4000 MW power plant

Jobs Creation—10 crore by 2022