The real estate market in North India collectively has been seeing an upward trend. Though Delhi is experiencing a slowdown in the real estate market, its peripheral regions are in huge demand. Tier II cities around Delhi NCR (National Capital Region) like Chandigarh have seen steady growth in the realty sector owing to the expanding NCR. Earlier restricted to Gurgaon and Noida the real estate market has now moved along other districts of Haryana, Punjab and Rajasthan.
NCR now covers 13 districts of Haryana with recent additions of Bhiwani, Mahendragarh, Jind and Karnal. It has also included Bharatpur district of Rajasthan. The NCRPB (National Capital Region Planning Board) has also identified Jaipur as a Counter Magnet Area.
Experts suggest that Mahendragarh (135 kms from Delhi) and Bhiwani (114 kms from Delhi) in Haryana and Bharatpur (220 kms from Delhi) in Rajasthan will see a 15% increase in property prices in the next 4 years.
Residential properties at one of the latest additions to NCR, Bharatpur is selling at INR 1500 per sq. ft. and the industrial plots are selling at INR 200 per sq. ft. Reports also suggest that the growing retail and financial sector in Bhiwani and Mahendragarh (Haryana) is helping real estate by creating opportunities.
Bhiwadi in Rajasthan has shown signs of fast development with well known builders like Avalon, Omaxe, and Ashiana developing townships in the area. Bhiwadi has been one of the fastest growing regions lately. Bhiwadi also boasts of rapid infrastructure development after the automobile giant Honda opened a production plant creating 10,000 jobs in the region.
According to the National Housing Bank (NHB) Residex, the real estate prices have shown a marginal rise in Q2 of 2013-2014 with Faridabad at 0.99% and Chandigarh at 0.53%.
Inversely a few areas have also seen a downfall in the prices with Meerut at a sharp decline of 6.88%, followed by Delhi, 4.53%; Ludhiana, 4.46% and Jaipur at 1.82%. Real estate prices at Dehradun were stagnant.
Developers have now moved to smaller towns because construction cost and approvals are becoming a huge hassle in areas like Delhi, Gurgaon and Noida real estate market. Also the economic slowdown is the metros have resulted in a lack of interest by the end users.
Recent reports also suggest that there is a strong demand for housing loans from the peripheral NCR region for the mid-segment properties.
The NCRPB provides soft loans to developers to the extent of 75 percent for infrastructure projects in NCR. Reports suggest that the board has already provided financial assistance to 277 projects worth INR 18,994 crores upto March 2013. In the Haryana sub-region of NCR, 106 projects have already been completed with an estimated cost of INR 4,683 crore apart from the 76 ongoing projects at an estimated cost of INR 9,238 crore with the financial assistance of NCRPB. The Haryana sub region has shown immense potential and growth in the region.
Gurgaon on the other had has shown exponential growth of 293 % in the past decade, the highest in the NCR region. Gurgaon and Noida remain a favourable real estate option for many with MNCs, corporate establishments and a range of retail units to cater to the growing population creating a steady demand for properties for sale in Delhi NCR. Luxury and mid-segment housing show high demand in this region. Though stagnant in the beginning of 2014, report suggests that the real estate market will pick up pace by the end of 2014.
Greater Noida is an educational and industrial hub showing great potential. The real estate prices have seen a reasonable amount of increase with the development of Buddh International Circuit and Yamuna Expressway. The Noida Expressway region, therefore offers a high price range of ready-to-move-in-units in 2014. Greater Noida properties seem to show a steady growth in prices.
Southern parts of Gurgaon offer a range of luxury apartments while the Golf Course Road and surrounding areas are a well-established real estate segment. Investment along the Dwarka Expressway is said be profitable as a long term investment option with all major builders developing projects in the region.
Ghaziabad still retains its position as a budget housing investment haven. Here the property prices are low compared to Gurgaon and Noida and is therefore a reasonable investment choice for many. Also, quite a few projects are under construction in the Rajnagar Extension area and along the National Highway 24.
Lucknow and Patna show a balanced real estate growth across all sectors; however Faridabad has shown a lot of promise owing to its proximity to Delhi and Gurgaon. The upcoming metro link and lower property value has attracted a lot of end users to this part of NCR. Faridabad’s Neharpar has emerged as a reasonably priced housing locality. Properties in Neharpar, also known as Greater Faridabad will turn out to be a great investment option.
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