NCR real estate - Neharpar on tenterhooks
Known as Greater Faridabad, Neharpar Area was incorporated in 2004-05 under the city's master plan. The location shares its boundaries with eastern periphery expressway, which connects with Ghaziabad, Noida, Faridabad and Palwal, lending it the status of an industrial corridor.
Also known as Greater Faridabad, Neharpar Area was incorporated in 2004-05 under the city's master plan. The location shares its boundaries with eastern periphery expressway, which connects with Ghaziabad, Noida, Faridabad and Palwal, lending it the status of an industrial corridor.
Sector 79 has been designated as commercial district by the Municipal Corporation of Faridabad. It is being developed with an objective of providing residential, commercial and office spaces to an essentially strategic location between Greater Noida and Faridabad. Greater Faridabad will also be very close to the Faridabad bypass road, which will connect the border of Delhi with Ballabhgarh and the adjoining industrial areas.
In tune with these plans, a number of infrastructure initiatives currently underway will provide vastly improved connectivity:
- The KMP (Kundli-Manesar-Palwal) expressway will connect the Neharpur area with Delhi and Gurgaon
- A 3-kilometer flyover between Delhi and Faridabad which will ease traffic bottlenecks at the Badarpur border is near completion
- 6-laning of the existing bypass road starting from Badarpur, parallel to the Agra and Gurgaon canals is near completion
Further, Metro connectivity from Faridabad border to South, East and Central Delhi and various industrial/commercial centres like Badarpur, Tughlakabad, Mohan Estate, Sarita Vihar, Jasola, Okhla Industrial Area, Kalkaji, Nehru Place, Kailash Colony, Mool Chand, Lajpat Nagar Areas, Nehru Stadium, Lodhi Colony, Khan Market and Central Secretariat will make many of the key locations of central and south Delhi easily accessible.
A number of malls now supplement the local markets - Crown Plaza Mall, Good Store and Lifestyle being among the major ones. The area now has the benefit of educational institutions such Echelon Institute of Technology, Apeejay School Faridabad, Palm Beach School for Autism, Modern Delhi Public School and the Institute of Aviation Management. Healthcare facilities include Apex Diagnostics and Polyclinic, Kilkari Paediatrics Clinic, Diagno Aide Pathology Lab and Kalra Child Care Centre. Also, the area has parks like Ecological Park, Swarna Jayanti Park and Destination Point.
HUDA (Haryana Urban Development Auhtority) is planning to construct sector roads (sectors 75-89) in the Neharpur area, further augmenting connectivity. An investment of several crore has recently been made towards the improvement of water supply to the region.
Effective deployment of all necessary civic amenities and other infrastructure at Neharpar is likely to take another 2 to 3 years. Once these facilities are in place, Neharpar will be on a par with other major realty hotspots in the NCR region.
Neharpar is developing into a megahub for residential and commercial projects. The biggest draw is that property is still available at affordable rates:
- Land - Rs. 12000-13500.sq.yd (primary market), Rs. 9000-10000/sq.yd. (secondary market)
- Apartments - Rs. 2050-3500/sq.ft per sq. ft.
On an average, the region has witnessed price appreciation of approximately 30% over last 12 months. As such, the Neharpur area is still the most affordable in the NCR region if we take Noida Extension as a benchmark for affordability. Even considering the steep increase in prices over the last year or so, Nehapar remains a more cost-effective option than Noida, Gurgaon and other parts of Faridabad.
Given the projected infrastructure development over the next 2-3 years, Neharpar is definitely a promising mid-to-long term property investment bet. The area saw an unprecedented boom from January 2012, and though the boom has now slowed on account of the sharp and sudden upward movement of property prices, rates are still reasonable and therefore expected to hold. A correction, if any occurs, would be marginal.
As per the latest market conditions, it does seem like that there is an inventory overhang in fresh bookings, which will take 6-12 months to clear. There are a few resale units available which are primarily finding takers among buyers focused on budget homes. Currently, property transactions at Neharpar are at low ebb. The next round of demand will depend on:
- How fast the government executes infrastructure work
- The performance of the economy, and
- The generation of employment opportunities
Property rates at Neharpar and Faridabad will stay steady between Rs. 3000-3500/sq.ft. for the interim. Projects with imminent possession dates should move up to these levels, while fresh bookings will lag until the infrastructure work is given a push. In other words, only investors with a horizon of at least a couple of years can expect to see a meaningful rate of return on investment. In fact, nearly 90% of investors into Neharpar are looking for long-term gains
There is certainly scope for further appreciation in the Neharpur. Demand for property in Faridabad's Sectors 88 and 89 is high as both are located quite close to two upcoming highways. In these sectors, the going rate for group housing ranges from Rs. 1400-1600/sq.ft. on the secondary market. In the primary property market, developers are quoting rates ranging from Rs. 1600-2200/sq.ft. The price of group housing has risen by between Rs. 150-200/sq.ft. over the last one year, and that of plots by about Rs 2000/sq.yd.
The major realty players in Neharpar include BPTP, SRS, Omaxe Ltd, Vipul Group, Piyush Group, Puri Constructions and RPS (BPTP has the largest land bank). TDI also has plans for residential and commercial projects in the area.