Tag Archives: Delhi-NCR Property

Saturated Indirapuram red hot property market

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Bottom Line: Indirapuram property market is a case study for any urban management student as the market is saturated and yet high in demand.

Indirapuram Property Market, Delhi NCR property market, Infrastructure in Indirapuram, India real estate news, Indian property market, Indirapuram market profile, Track2Media Research, Track2RealtyIndirapuram has been the introduction of Delhi-Noida-Ghaziabad to modern living that was till then the privilege of only the luxury buyers of Gurgaon. Most of the residents of Mayur Vihar, IP Extension and adjoining areas of Delhi were exposed to the modern urban housing with club, swimming pool and other high-end amenities in this market. Other residents of Noida and Ghaziabad had till then availed only the plotted developments and apartment with amenities was introduced to them here only.

Welcome to Indirapuram! It is a property market on National Highway 24 that falls into Ghaziabad district of Uttar Pradesh. However, its location has the equidistance advantage with Delhi, Noida and Ghaziabad. Established in 1996 its emergence on the property market landscape in the early 2000 led to homebuyers flocking to this micro market.

Tanveer Alam, a property agent recalls how people started selling their homes that were mostly cooperative housing societies, government housing and plotted developments. Everyone wished to buy an apartment here and avail the kind of amenities that were exclusive luxury for the high-end Gurgaon homebuyers in Delhi-NCR till then.

“The best part about Indirapuram was that despite being a part of Ghaziabad it was never like the rest of Ghaziabad. Since the government also wanted to showcase it as the future of the city, the law and order was as good as Delhi. Moreover, the area was a planned development, unlike other competing property markets of the district, like Vaishali, Vasundhara or Kausambi,” explains Tanveer.

However, the rapid developments in the micro market led to inorganic growth of the location where the load on the infrastructure is taking its toll now. One can easily vouchsafe that today Indirapuram has reached to its saturation point by all means – price point, population density, load on infrastructure and future development potential. The residential property rate that was initially at INR 2,000 per square feet reached to INR 3,000 per square feet in 2008 but now struggles to cross the barrier of INR 6,000.

Nikhil Hawelia, Managing Director of Hawelia Group does not agree that   Indirapuram has reached its saturation point – both from the perspective of price point as well as new launches. He believes it will be little early to say that Indirapuram has reached its saturation point. Being surrounded by Capital territory ‘Delhi’, Industrial hub ‘Noida’ and comfortable linkage to various National highways, it serves as a comfortable address to its residents. Due to saturation in land availability in Delhi, Indirapuram had emerged as a residential town near to the capital.

“It is true that once this region has witnessed a glorious picture as one of the hot investment destinations and appreciation in property values. But in the current market situation the clear titled land in Indirapuram is not readily available. The price point in terms of land is already saturated and further increase of the same is least expected in the near future. But due to less availability of the land flats and built up homes may have further appreciation in prices as demand and supply curve has an edge towards the demand,” says Hawelia.

Advantage Indirapuram

Indirapuram has been first planned development of Ghaziabad with good mix up of residential, commercial, retail, institutional, schools & hospitals

Modern amenities were introduced with various housing projects for the first time in the region

Running parallel to NH 24, it provides seamless connectivity to Delhi, Ghaziabad, Noida, Gurgaon and Faridabad

Widening of NH 24 into 14 lane will be icing on the cake of Indirapuram property market  

Most of the analysts in the region believe that the property value in terms of other infrastructure and facilities such as commercial, school, hospitals, malls etc are stable as of now. The area population has been growing remarkably in the current time but no required development is being noted in the overall infrastructure of the area to accommodate it. This is the only concern and alarming factor which will decide the fate of Indirapuram way forward.

Respective authorities and government departments should work on these concerns and rectify such problems so that this area can maintain its status in future. Nearby upcoming residential hubs like Noida, Siddharth Vihar, Greater Noida West etc which have better infrastructure planning are also giving a close competition to the residential market of Indirapuram.

Having said that, the fact remains that there are very few residential markets in India that are attracting the homebuyers despite of saturation, increasing population density and load on infrastructure. This is despite the fact that Indirapuram is not a business destination and is only the residential market that connects well with the other business destinations of Delhi-NCR. What also adds up its attraction quotient is the proposed widening of NH 24 and FNG Expressway (Faridabad-Noida-Ghaziabad Expressway). Collectively, the emerging developments demolish the psychological barrier of the saturation point of the market.

By: Ravi Sinha

Habitation challenges galore in Noida Extension

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Noida Extension, Greater Noida Property, Greater Noida West, Delhi-NCR Property, Indian real estate market, India property market, Real estate news portal, real estate website, Real estate news in India, Track2Media Research, Track2Realty, NRI property market, Investment in Delhi-NCRNo other residential micro market of India has arguably weathered as many challenges and controversies as Noida Extension. Its inception as a separate zone, other than Noida & Greater Noida, did lend credence to conspiracy theories against the farmers that culminated into land acquisition litigation. Since then it has been a sordid saga of project delivery uncertainties and homebuyers endless wait; not to speak of the additional charges levied as against the compensation amount hiked to the farmers.

Yet, Noida Extension is getting ready to be home to thousands by the end of this year. The well-planned region otherwise, the micro market still stands as a ‘no man’s land’ with not even an official pin code being given to the place.

From the standpoint of urban planning, it has the higher density of population than Noida or Greater Noida with around three lakh apartments under construction. The basic infrastructure is still very much a challenge and officially it is work in progress in Noida Extension. While the Greater Noida Authority (GNIDA) has laid power cables and built substations, the road network is still in a bad shape for habitation of nearly one lakh people very soon. There is only one school ready and the government officials claim land has been allotted for a few more as well as a hospital.

The GNIDA officials say water supply provisions for individual plot owners are in place, but for group housing societies, it is a builder’s responsibility. The industry body CREDAI does not seem to think it is their responsibility to take up the matter with the authorities. As a matter of fact, the CREDAI President Geetamber Anand even refused to speak on whether Noida Extension can be called habitation-ready.

The market is nevertheless going to be the address of those middle class who could not afford in any other part of Delhi-NCR. Most of the developers who started the projects early in the year 2010 are closer to delivery and many of them would offer the possession by early 2016. So, in all nearly 50000 to 60000 flats would be ready for delivery by that time.

In terms of its appreciation potential, the average salaried-middle class homebuyers got a shock in July this year, when the property consultant JLL in a report declared Noida Extension as high-risk zone and advised the homebuyers to stay away. The report had said that with around 2 lakh apartments coming up the market is not likely to appreciate. It seems now that Noida Extension is getting ready to deliver thousand of apartments, the outlook towards the market is changing.

Santhosh Kumar, CEO – Operations & International Director, JLL India says  that with the infrastructure developments happening in the region, and with better connectivity to Delhi and Gurgaon, Noida Extension is ready for habitation. With the rate cuts and cheaper housing loans, demand is going to be high in that region. Both the primary and luxury residential markets segments have high potential.

“At current estimates, around 21,000 units should be delivered by the end of the year. However, some projects may still miss the deadline. At a rough estimate, around 15-18 thousand units are likely to be delivered. The infrastructural developments in Noida, Greater Noida and Noida Extension are well planned, with road and metro corridors. Hence, there will not be much impact as far as the load on infrastructure is concerned,” says Kumar.

Nikhil Hawelia, Managing Director of Hawelia Group that is getting ready to deliver a project in Noida Extension early next year is bullish on the market. According to him, going with the present situation a number of developers has already started giving possession of residential units in different projects in Noida Extension. The region is on the fast track of progress. Great connectivity & infrastructure with required facilities have made this region a leading real estate market today. Already near to 300-400 families have moved and living here. At the same time the other related developments which are necessary for a comfortable and hassle free living are taking shape speedily.

“With the kind of development taking place in this region, it is undoubtedly all set to become an ideal destination for habitation by addressing all the required necessary facilities for a community living. Currently, basic daily needs are being addressed but it will take another 10-12 months for major facilities to be fully functional in the area. As of now, receiving a courier to your home address is a challenge in the existing scenario. Local transport facilities from authorities and state government are still not functional. Installation of a landline phone connection or internet facilities which are the necessity of today’s modern habitable living are still the concerns,” admits Hawelia.

Urban planning fundamentals suggest that for a city to grow as a residential or commercial hub and to lure its potential customers, there is the need to set in place its basic infrastructure and facilities which are the factors considered pivotal in decision making. Can Noida Extension be termed as investment magnet from that given benchmark? The opinion is divided but on paper there is definitely detailed planning of infrastructure, including the road connectivity network, sewage & sanitation, electrical, etc.

The developers active in the market assert that with a lot of developments across various sectors, and metro connectivity to all key destinations, this region will not add up to the load on infrastructure. They maintain it will become one of the fastest developing sub-cities in the NCR. Also in line to the residential developments, the required commercial developments, educational institutes, health & medical facilities and office & IT spaces are already part of the planning by GNIDA.

On the eve of festive season, as many of the homebuyers were evaluating their work-life balance post shifting to the new homes in Noida Extension, there came another blow to dampen the spirit. The Allahabad High Court ordered the demolition of numerous realty projects launched by various real estate developers including Supertech, Amrapali and Jagat Taran. The demolition of the high-rise building projects located in the Patwari Village of Greater Noida came in light of the fact that they are situated nearby graveyard areas, which according to the High Court, is illegal and therefore stand to be demolished accordingly.

The final vote of confidence, if not verdict, on Noida Extension is yet to come. However, within the built environment of Indian real estate everyone continues to whisper that Noida Extension has been a thriller micro market that has scripted many thickened plots.