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Year 2017 likely to be a trendsetter for real estate

Year 2017 likely to be a trendsetter for real estate

The Indian real estate market may become attractive at the onset of New Year. Happykeys takes a stock of developments and factors that will influence the real estate market this year.

As 2016 winds up, it’s time to review the developments that took place through the year. Undoubtedly, 2016 has been a remarkable year as far as India’s urban infrastructure is concerned. Hence, Indian real estate has many positives to look forward to.

Here is a report on how Indian real estate segment is expected to perform in 2017.

Demand Factors:

According to the Ministry of Statistics and Programme Implementation report the population rise in county is on a steady rise. With this rising population, there will be steep rise in housing demand also. The absorption of high number of housing units, itself depicts the picture of New Year that the occupancy rate is going to be high in 2017.

In a report by real estate consultancy firm JLL, in the last four quarters the property prices in Mumbai and Chennai improved by 3.7 per cent and 1.7 per cent respectively while the DELHI –NCR property market have remained stagnated. Market experts believe that this situation is anticipated to improve in New Year based on record of series of new launches and ease in property buying process due to government new laws and decisions.

Mr-Prashant-Tiwari-Chairman_Prateek-GroupAccording to Prashant Tiwari, Chairman Prateek Group, “The changes in real estate market have already started happening with measures like not increasing base rates, implementation of Real Estate (Regulation & Development) Act, relaxes in FDI norms and exemption of service tax on construction of affordable houses up to 60 square meters. Benami transaction act, infrastructural developments and many other proposals lying in pipeline will eventually take the realty market towards improvements and progressions in coming year. Therefore outlook for the next year 2017 is very much positive. We are optimistic that real estate sector will witness a changed environment with improved customer sentiments and enhanced growth“.

 

Mr.-Deepak-Kapoor-President-CREDAI-Western-U.P

Deepak Kapoor, President, CREDAI Western UP observes that, “There is growing positivity in the real estate sector that can now hope for a new phase of growth. The government has taken various steps to ensure that an atmosphere of growth and development is created for real estate sector. Moreover, the economic status of our country is also improving which will further boost the demand for properties. Considering the developments and changes which are taking place in the realty sector currently, property market is expected to much improve in 2017. “.

 

Mr-Akshay-Taneja-MD-TDI-Infratech-Ltd

According to Akshay Taneja, MD of TDI Infratech Ltd, “2017 will definitely be a good year for real estate sector. Year 2017 will help real estate sector in a big way as many positive changes have already taken place in the current year. These include reduction in interest rates, interest subsidy to home buyers, increased loan portfolios, increased and ease FDI in real estate & construction sector, implementation and introduction of real estate regulatory authority and GST bill etc. “.

 

 

Government Initiatives

A series of new decisions and laws promise to bring good days ahead to the Indian real estate market. The respective state governments has also taken several initiatives to encourage the developments in the real estate segment. Here is the list of some of the major government initiatives that will boost the morale and confidence of home buyers.

  • The Cabinet Committee on Economic Affairs (CCEA) has approved various measures to revive construction sector
  • The central government has brought Real Estate (RERA) act, 2016 on May 1, 2016, which is aimed at making necessary operational rules and protecting the interests of home buyers
  • New exit policy: With the enforcement of new exit policy, builders can complete their ongoing projects nearing completion and give possession of flats on time
  • Model Shop Establishment Act: The rule will give freedom to retail outlets to keep open 24×7. This act will promote investment in commercial sector. Investors can look in the commercial space as in the near future prices may go up
  • REIT rule relaxation for small investors.
Top 5 localities in Ghaziabad for real estate investment

Top 5 localities in Ghaziabad for real estate investment

Ghaziabad has been at the center of real estate activities in the NCR circuit owing to its strategic infrastructure and property price tag. Happykeys does a comparative analysis of top 5 residential destinations to help prospective home buyers to make an informed decision.

Here are the top most choices in terms of livability index, locality, connectivity, civic infrastructure and property prices.

#1. Indirapuram:

Indirapuram has emerged as the most expensive residential locality of Ghaziabad as per the Price Tracker Report by Happykeys.com. Undoubtedly, this locality is planned and more organised as compared to other residential localities. This locality offers multiple choice of multi-storied apartments and posh buildings. Average property cost recorded here in the last quarter was to the tune of Rs 5,300 per sq ft. The housing demand here is driven by working professionals who prefer living here due to smooth connectivity with Noida and Delhi. Presently, metro connectivity is up to its neighboring Vaishali but it has been stretched to Indirapuram linking the area with Greater Noida, Noida city centre and Rajiv Chowk. This is likely to be operational in 2017. The locality houses eight shopping malls.

#2. Raj Nagar Extension:

Raj Nagar Extension in Ghaziabad is fast emerging as a budget locality hub in Delhi-NCR, with thousands of families already moving in as the social infrastructure continues to improve. “In the last three years, Raj Nagar Extension has shifted its focus from being an affordable housing zone to premium lifestyle township offering everything — from residential apartments, schools, healthcare centres to shopping malls. This transformation has been noticed by investors and end users. It must be noted that the property value appreciation is comparatively highest here as compared to other regions” says Gaurav Gupta, general secretary, CREDAI Raj Nagar Extension.

#3. Crossing Republik:

Crossing Republik is situated next to Indirapuram and is considered a key micro-market of the NCR. The localities here have become well established residential hubs that have drawn the attention of buyer and investors interest. According to Bipin Chandra, a resident of Republik, “Crossing Republik is established and more developed residential area as it is one  of the first planned township in Delhi NCR developed in 2006”. A two bedroom apartment in the area ranges between Rs 42 – 59 lakh. A three bedroom home will cost upwards of Rs 60 lakh.

#4. Vaishali:

Another expensive locality in Ghaziabad is Vaishali which commands an average property rate of Rs. 6,000 per sq ft approximately. The real estate market here has been luring new home buyers and investors with ample options promising high ROI in future. The localities lying along the metro corridor have already registered steep rise in their capital values. Property rates and rental values are increasing due to its proximity to Indirapuram, Noida and Greater Noida.

#5. Kaushambi:

The USP of this locality is its connectivity via the Delhi metro, which extends to Ghaziabad and Anand Vihar. The two national highways – NH-24 and NH-58 pass through this locality. Kaushambi offers good mix of residential societies, malls and multiplexes promising a good life and transportation facilities. The prices of apartments are, however,  comparatively affordable as 1BHK apartments cost around Rs 15 lakh, two bedroom homes come at around Rs 60-65 lakh and 3 BHKs are priced upwards of Rs 1.1 crore.

Sachin Verma from DPR infrastructure explains that localities in this area were once old developments and also considered distant from Delhi. Developed and upcoming infrastructure has clearly demarcated the old areas from new ones. In the last few years these localities have seen tremendous growth in terms of real estate. These localities are now greener, safer and more organised than other locations of NCR circuits.

Due to its proximity to Delhi and connectivity advantages, these localities have emerged as key real estate destination in NCR,” says Mohit Srivastava, a real estate broker.

knowledge-park-5

Knowledge Park V: A realty hotspot in Gr Noida

Knowledge Park is a stupendous township in Greater Noida that has amassed great attention from new home buyers as well as investors.

When it comes to educational hubs in the NCR,  Greater Noida’s Knowledge Park proves to be an excellent spot. The locality is well known for housing some of the premier engineering, management and medical institutes.

Paving the way for new education center in National Capital Region, the locality is known for ideal mixed-use property destination and offers best residential cum commercial investment options too. Freeways such as Yamuna Expressway, Noida-Greater Noida Expressway provides the better connectivity to Noida and its adjoining areas. The satellite town further segregates into sub-areas namely knowledge Park II, Knowledge Park III, Knowledge Park IV and Knowledge V.

Happykeys looks into the factors that really make Knowledge Park a realty segment

Well- planned sub-city

Greater Noida itself is one of the best organised residential regions of NCR, planned according to latest layout of Urban Master Plan. The Knowledge Park V, being the prominent part of this massive township, has well-developed social infrastructure which includes an excellent network of road, water supply, sewerage, drainage and many infra developments. The GNIDA – an autonomous authority has developed the almost all key infrastructure before handing over the land to private builder for residential or commercial development.

Excellent connectivity

The locality avails finest road connectivity that connects major parts of Delhi, Noida, Ghaziabad and Faridabad. Delhi is easily accessible from Knowledge Park V via main road and direct flyway.

Presently, Botanical Garden Metro station is the nearest metro link to Knowledge Park. The proposed 30 km metro rail extension from Noida to Greater Noida is underway. According to Pranav Sharma, MD, IBL Consultant, “The NMRC (Noida metro rail corporation) has proposed 20 metro stations on the route that include Sector 50, 51, 78,  81, 83, 101, 137, 143, 147, 144, 153 and 149 in Noida and Knowledge Park II, Pari Chowk, Alpha 1, Alpha 2, Delta, Knowledge Park IV and Bodaki in Greater Noida. This project is expected to complete by 2017”.

Such developments boost the potential to offer high returns on investment”, adds Sharma.

Educational hubs

The presence of good educational institutions is yet another growth driver behind the development of Knowledge park V. Gautam Buddha University, Noida International University, IEC college of Engineering, GNIT college of Management, Galgotias and Sharda University are some of the institutions of the good repute.

Still an affordable market in the NCR

While the property prices have increased significantly in the adjacent areas like Delhi, Gurgaon and Noida; still the residential markets of Greater Noida and Noida Extension regions remain affordable locations. Here, residential units priced at Rs. 3,500 – 5,500 per sqft approximately.

Situated amidst commercial and industrial hub

Knowledge Park V is located amidst the hottest business spot of the NCR region. Some of the noted companies such as Moser Baer India Ltd, Habitech Cyber Studios, ST Microelectronics are located in the vicinity.

Noida realty bets big on booming infrastructure

Noida realty bets big on booming infrastructure

The advent of new metro routes and good civic infrastructure has made Noida a favorable property destination for new home buyers. Real estate development is happening at fast pace in National Capital Region (NCR)’s most popular town, Noida. With excellent roads and highways, quality infrastructure, glitzy recreational options and smooth connectivity via new metro routes, Noida proves to be an ideal realty destination.

Happykeys explains, how Noida became one of the most prominent cities in India after forty years of its inception. In these years Noida’s real estate segment saw an unprecedented growth and had extended up to Greater Noida West and Yamuna Expressway regions. And now the city infrastructure development is rampant, bringing more developers, projects and home seekers.

Here is list of recent developments taking shape in the city that will further give boost to Noida property market and make it most happening real estate destination in NCR region.

Multiple sports Infrastructure in offering 

Presently, Noida has cricket stadium in Sector 21A also called as the Noida stadium with a seating capacity of 30,000 people. The stadium is capable of hosting international cricket matches. Madan Lal, former Indian cricketer and coach says “Noida has the best schools, best colleges, best hospitals and one of the best cricket stadiums. The sports infrastructure is great here, which matters to a sportsman like me”.

Shooting range to be ready by June 2017

Another gift that Noida residents would be getting by next year is Shooting Range facility. Once this state-of-the-art range is completed shooters will not have to travel to Delhi and Haryana to practice shooting. The double-storey shooting range is being constructed in the city’s stadium in Sector 21A. It will be equipped with practice range for 10mm pistols. More than forty shooters will be able to practice at a time at the range measuring about 4800 square meters.

Kalindi-Kunj underpass

In a recent verdict by Allahabad High Court, Noida Development Authority has been directed to acquire 2,300 square metres of land required to complete a Rs 40-crore underpass near Noida’s sectors 94-95. This underpass project will make the stretch between Kalindi Kunj in Delhi and NH-24 signal-free and it will ensure one stop travel those commuting from Faridabad to Sarita Vihar via Kalindi Kunj-NH 24. It will also benefit the commuters, coming from Delhi towards sectors 125 and 94 in Noida, who currently use the Mahamaya flyover.

Faridabad-Noida-Ghaziabad (FNG) expressway to be developed as National Highway

The National highway Authority of India (NHAI) has been asked to develop the road as a national highway, connecting Ghaziabad, Faridabad with Noida and Greater Noida, so that it can help decongest existing road networks.

New Metro route between Kalindi Kunj in Delhi to the Botanic Garden in Noida (Aqua line)

The under-construction 3.9-km link between Kalindi Kunj in Delhi and Botanic Garden Metro station in Noida is likely to be to be operational in December. The track is likely to be ready for commissioning by January 2017. This new track will connect to DMRC’s magenta line. Now, commuters will no longer have to go to Rajiv Chowk Metro station to take the yellow line (Huda City Centre to Samaypur Badli) as the corridor will form a ringed route and connect Botanic Garden station with Hauz Khas station via Amity University, Kalindi Kunj and Kalkaji temple station.

gnida-infra

GNIDA getting ready for UP CM to launch five infra projects

There is good news for citizens of Greater Noida. The Uttar Pradesh Chief Minister Akhilesh Yadav is likely to launch at least five infrastructure projects of the city on December 11.

There is good news for citizens of Greater Noida. The Uttar Pradesh Chief Minister Akhilesh Yadav is likely to launch at least five infrastructure projects of the city on December 11 during his proposed visit to Noida. Greater Noida Industrial Development Authority (GNIDA) is leaving no stone unturned in putting the finishing touches to the multi-crore projects, which if the CM comes to Noida will be given the virtual nod from Noida Stadium.

According to GNIDA officials, the infrastructure projects, which have come at a cost of Rs 595 crores include 1950 affordable housing units, a bridge across Hindon, a 30-km cycle track, GNIDA office building and extension of the Vijay Singh Pathik sports complex.  “We have started the work of putting the finishing touches to the project and are getting ready for the CM’s visit,” said Rajeev Tyagi, General Manager (Projects), GNIDA. “If the CM comes to Noida, these projects will be inaugurated from Noida Stadium otherwise they will get his nod from Lucknow,” Tyagi told TOI.

Tyagi further explained that while the sports complex has come at cost of Rs 117.60 crore, GNIDA office building of has cost the Authority Rs 325 crore. The 1950 affordable housing units located in sector 10 of the city has cost Rs 113.41 crore, while the bridge across Hindon is Rs 27 core and cycle track project has cost Rs 12.50 crore. “The stadium and cycle track have already been completed but have yet to be inaugurated formally,” he said. “The other two projects including the office building and housing units have been recently completed and are yet to be occupied. These will be opened to the public, once the CM inaugurates them formally,” he added.

According to real estate expert, the rapid development in civic infrastructure will boost city’s facilities and will give invitation to ample of potential buyers and investors. It will also attract reputed builders and developers of the country to launch new commercial as well as residential projects in the locality. Experts also believe that, now the locality real estate market will be driven by excellent connectivity to major cities and smooth infrastructure.

Dwarka Expressway

Why Dwarka Expressway is ideal for investment

Dwarka Expressway is new emerging realty hotspot in the neighborhood of NCR that has good supply of residential properties in affordable price range.  Here is more about this fast developing locality.

The realty scenario along the Dwarka Expressway is driven by smooth infrastructure and planned urbanisation. The locality has emerged as a preferred destination for residential and commercial property buyers. The area has successfully attracted investors with its many advantages.

The eight-lane expressway is supposed to bring big relief for daily commuters who travel from Delhi to Gurgaon. Construction of several commercial and residential projects has already started in this region. Many reputed builders such as Raheja, Assotech, Godrej, Eldeco, Tata Value Homes, Vatika Group, DLF, ATS etc. have launched their projects on Expressway and gained great response from the buyers.

Today, sector 106 along the expressway is gaining prominence among the home buyers and investors. Realty experts are optimistic about this locality and say that locality will have a good reputation in the realty segment with ample residential projects being launched here. They also suggest that this is the right time to buy as property prices have stabilised now and may rise exponentially in near future.

Besides better connectivity, well-planned urbanisation, and improved social infrastructure along Dwarka Expressway many real estate developments are on in full swing which makes the locality preferred destination for investors and homebuyers as well. Once the road is ready to commute, it will act as a business channel between Delhi and Gurugram”, says Rajat Baweja of Baweja Properties & Constructions.

The circumference of the area is well-mapped with nearly half a dozen good public schools like Maurya International and Gems International. Hospitals like Medanta, Artemis, Columbia Asia and Umkal are in vicinity, apart from entertainment zones and shopping malls.

Now real estate market in Gurugram is improving, impact of some positive steps taken by Haryana and central government like news of reducing circle rates, increase in FAR (Floor Area Ratio) of residential plots and home loans at decent interest rate are now reflecting in Gurugram real estate market. A good scope is still alive for investors to invest in Gurugram, NPR (Northern Peripheral Road) which is known as Dwarka expressway is one location to invest now a days, as anyone can get a good deal there in around Rs 5,000 per sq ft  which is fairly a good price to invest”, says Harish Arora of  Saksham Services.

Top Real Projects to Invest

  1. Tata La Vida
  2. CHD 106 Golf Avenue
  3. Godrej Oasis

Dwarka Expressway fast facts:

  • Dwarka Expressway also called as Northern Peripheral Road is high-speed link road
  • It is 150 m wide and 18 km long stretch that will connect Gurugram and Dwarka in Delhi
  • It is third direct connection between Delhi and Gurugram after NH8 and Mehrauli-Gurugram Road
  • Gurgaon Sectors from 81 to 115 have been developed alongside, with particular commercial and residential projects
  • There are more than 100 residential projects under construction in this locality
  • It is expected that area will be inhabited by over 42,000 residents.
  • The adjacent area along the Dwarka Expressway is being developed according to Gurugram -Manesar Master Plan The highway has a greater national significance as it is an integral part of the Mumbai Delhi Industrial Link Corridor
Bengaluru Metro Phase II

Bengaluru Metro Phase II to boost realty

While transportation and connectivity within the city is set to become easier with second phase of Namma metro link, the impact on realty market is expected to be even more pronounced.

Taking another step towards hassle free connectivity within Bengaluru city, Bangalore Metro Rail Corporation (BMRC) is working on expanding the proposed Namma metro (literally “Our Metro”) network through phase II. The new phase of metro is likely to be completed by December 2020 as per timeline set by BMRCL. Ahead of this, the real estate fraternity looking forward and say investment in property along the route will pay rich dividends. The demand for both residential and commercial property in the region is likely to increase.

This new route will have 72 km of long stretch and which is going to add 61 more stations to the Namma metro network. There will be 12 underground stations in the network which will expand up to 13 km of distance and rest 57 km will be elevated.

“The proposal to expand the metro route in phase 2 would be blessing for the commuters as well as Bengaluru realty market. In the localities falls within the reach of metro the most visible effect is demand for residential and commercial properties. Constant rise in value is seen in properties lying close to metro corridors. Population density also increases in all the areas falling within the metro routes. Areas nearby metro corridors enjoy an edge over other areas both in terms of better demand for travelling time and cost advantages. Metro route extension to Mysore Road-Kengeri and Byappanahalli-Whitefield has made these real estate market more attractive for home buyers and investors”, says R. Rohit of R R Real Estates.

Importance to Bengaluru

Once the second phase of proposed metro is completed, the locality along the corridors is expected to see great impact on real estate sector in the city. According to Rebin Thomas, who runs a property brokerage service in Kalyan Nagar, “Major IT hubs of the city like Whitefield and Electronic City will get more benefit of this project. Property prices in the locality would see significant increase in the near future. Currently the residential property in the Whitefield area are available between the price range of Rs. 3,700 to 6,200 while Electronic City being bit affordable than Whitefield. Property prices here is between Rs. 2,800 to 5,000. These areas could see value appreciation with expectation of improved connectivity”.

Namma Metro is India’s second largest metro system in terms of both length and number of stations, after the Delhi Metro. The new corridor after extension will add the following route to the existing metro network.

Line Terminals Length New Stations Expected work completion date
Purple line Mysore Road – Kengeri 6.465 km 5 December 2020
Purple line Baiyyappanahalli – Whitefield 15.50 km 13 December 2020
Green Line Puttenahalli – Anjanapura 6.29 km 5 December 2020
Green Line Hesaraghatta Cross – BIEC 3.77 km 3 December 2020
Line 3 R V Road – Bommasandra 18.80 km 16 December 2020
Line 4 Gottigere – Nagawara 21.25 km 18 December 2020
ORR Metro Silk Board – K.R. Puram 17 km 13 ———————-