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It’s
not just the budget that drives the markets. Sometimes it’s state government
policy too. Take Haryana where real estate capital value has gone through the
roof. In fact, price of both the residential and commercial land in the state
have gone up by 40% to 50% in the last one year.
Areas
like Kundli, Faridabad, Gurgaon-Sohana road; Panipat and Palam Vihar in
Gurgaon are now calling the shots. In the real estate sector. In these
regions, land price have increased by 35% to 40% in last six month.
In
place like the Faridabad and Kundli, where the price were Rs.3, 000 to 4,000
sq. ft. in early 2004, the rate is now a whopping Rs.10, 000 to 12,000 per sq.
ft. Ditto with Kundli where two months back the land capital value was Rs.6,
000 to 6,500 per sq. ft. and now it’s at Rs.12, 000 per sq. ft. Same is the
case in Faridabad where the price have a seen jump of more than 100% with the
enouncement of BPTP’s Parkland township which is one of biggest township in
the north India.
Even
bungalows are seeing huge increases in value in these areas. In Palam Vihar
(in Gurgaon), last year the land price was Rs.5, 500 to 6,500 per sq. ft., now
it has touched Rs.12, 000 to 14,000 per sq. ft.
Says
Kamal Taneja, MD, Taneja Developers and Infrastructure LTD; “The increase in
land price in Haryana is due to rise in demand for housing because of growing
disposable incomes and changes in traditional family unit. What I do see is a
leveling off in the next 3 to 4 years.”
Agree
Rohtas Goel, CMD, Omaxe Group; “This year has witnessed a significant
buoyancy in quoted residential and commercial values across prime suburbs in
National Capital Region (NCR) and Haryana because of low interest rates.
However, the aggressive marketing by leading banks of their home loan rates
and also by housing finance company may prove to be a positive. It will help
home purchase decisions by genuine end users.”
And
in keeping with the rising demand, and the need to expand the National Capital
Region Planning Board (NCRPB) has identified five new townships, including an
Education City. This city is located north of Delhi around three industrial
towns- Rai and Sonepat and Kundli. Among these, Kundli is the fastest
satellite town emerging in the NCR. The five satellite townships proposed in
the plan 2021 aim at de-congesting the NCR region, which is clogged with a
burgeoning population (growing at a CAGR of 27%) and straining the existing
infrastructure. These township envisaged as counter magnets to the NCR will
check further population influx to, or alternatively decongest the NCR if the
suffice the aspiration needs of the target population. Suitable employment
generation, housing and recreational facilities and transport connectivity to
these townships will enable the development objectives of the metro hinterland
to be achieved.
Gurgaon
There
is no doubt that Gurgaon is emerging as the main hub for IT and IT-enabled
services which has spurred the demand for commercial well as residential
properties.
The
income level of IT professionals is much above the average industries
salaries. Since most of the couples earn, they often are ready to own a house
in two to three years of working. This class is increasing very fast;
therefore the demand supply gap is on the increase.
The
old Gurgaon is saturated and even NH-8 offers no scope for development. After
NH8, the only availability of raw land for expansion of Gurgaon was Sohna
road.
The
Gurgaon-Sohna road is proposed to be made six lanes with good connectivity to
NH8 and these have made the area the next residential destination.
Says
Sanjay Chandra MD, Unitech Group: “The strategic location is one good reason
for the fast development of the region. The area is centrally located but
still away from the hustle and bustle of the city.”
However,
infrastructure still remains a critical bottleneck in the area and needs to be
addressed fast, if it is to attain its attractiveness for the buyers at the
macro level. This is despite the fact the most of the new large residential
developments are comparable in terms of quality and finishers to the best
available in the country.
The
state government can also help in developing in Gurgaon as an international
class city with better planning. This would, of course, require both HUDA to
interact more often and sincerely implements measures for creating urban and
social infrastructure. Improvements in the urban and social infrastructure
will see a lot of activity and movement in the commercial and residential
sectors, besides helping the prices to go up.
by
Raja Awasthi (The Economic Times)12 feb 2006
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