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Sep 20, 2013, 02.39 PM IST | Source: Jones Lang LaSalle

Delhi-NCR realty: What ails Sonipat, Panipat and Faridabad?

Panipat and Sonipat have traditionally been industrial and business towns, typified by the presence of several SMEs - and, in the case of Panipat, petrochemical and textile industries.

Sonipat And Panipat

Technically, there are certain favourable factors for the realty markets of Sonipat and Panipat - proximity to Delhi and connectivity through NH1 being the primary ones. Nevertheless, these areas have not been able to position themselves as real estate hubs of any significance, and their realty markets have seen only moderate growth so far.

It should be remembered that real estate and economic prosperity are factors that augment each another. Economic development translates into employment opportunities and increased employment boosts an area's realty market, which in turn accelerates the economic growth of the region. It is against this yardstick that these two areas need to be evaluated for their current real estate potential.

Panipat and Sonipat have traditionally been industrial and business towns, typified by the presence of several SMEs - and, in the case of Panipat, petrochemical and textile industries. Literacy levels in these two areas have remained relatively low - as can be expected from localities whose primary economic drivers are SMEs and industries. As a result, the income levels of the population residing in these towns have never been able to breach the 'average' mark.

The additional drivers that would catalyse increased real estate demand - increased employment opportunities in a higher-profiled class of workplaces, which would result in increased income levels - have been notably absent. Sonipat and Panipat have been unable to make any kind of headway in positioning themselves as corporate hubs. Indeed, there is no corporate presence at all to be seen in either of these locations.

Another important factor - the availability of cheap and skilled workforces (which is crucial for development of a realty market and an area's ability to attract corporates) is conspicuously absent in these areas. The local, native population has consistently displayed a lack of aspiration in terms of transcending their traditional employment opportunities. Nor is there any significant influx of migrant population to help raise the profile.

Yet another vital ingredient for a real estate success story that is missing at Sonipat and Panipat is the availability of cheap surplus land. Since these are essentially small towns, no land parcels of significant magnitude are available. Although many residential projects and townships have come up in the vicinity of Sonipat, this residential supply has not resulted in new commercial activities. Thus, most of this not inconsiderable supply is lying vacant. Only investors have shown some interest in these projects, as end users lack the economic means to pursue home ownership even if they plan to settle there.

That said, this rather gloomy scenario at Sonipat and Panipat could take a turn for the better in the future. As the many new infrastructure initiatives such as the KMP-KGP Expressways and metro connectivity being pursued in these areas take shape and form, the realty fortunes of Sonipat and Panipat will certainly start improving.


Faridabad

Faridabad presents a similar picture. Fundamentally, this is an industrial town whose only other economic driver has been a certain amount of agricultural activity. Unfortunately, the employment generation potential of the existing industries at Faridabad has reached a saturation level; this area now is in serious need of other sustainable forms of commercial activity - not to speak of infrastructure up-gradation - for next level of development and real estate growth to take place. 

NO doubt, the trend of real estate demand within NCR shifting to alternate locations is likely to continue. In the process, these three areas are by default lined up for increased appeal, largely because of the availability of comparatively cheaper land for residential and commercial real estate development. However, the pace of growth - and the sustainability of this pace - will remain constricted until these regions are able to complement real estate demand with other forms of commercial and economic activities that generate enhanced employment opportunities.

A stepping-up of infrastructure initiatives and development, Government policies promoting the establishment of SEZs and business parks, a greater focus on law and order and the availability of healthcare and education facilities are some of the other factors that are required to increase these locations' potential to be the next real estate destinations.

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Aajiwali
3000 - 5000
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3000 - 5000
Badlapur
1000 - 3000
Bhandup (West)
11000 - 13000
Chembur (East)
15000 - 17000
Chembur (West)
11000 - 14000
Dombivali (East)
4000 - 6000
Ghatkopar
13000 - 15000
Heeranandani Gardens Estate - Powai
25000 - 30000
Hiranandani Gardens Estate - Powai
25000 - 30000
Kalyan (East)
2000 - 4000
Kalyan( West)
3000 - 5000
Karjat
1000 - 3000
Khandala
8000 - 10000
Kharegaon
5000 - 7000
King Circle
17000 - 28000
LBS Marg
12000 - 15000
Lonavala
3000 - 5000
Mulund (East)
11000 - 14000
Mulund (West)
11000 - 14000
Mumbai Nasik Highway
3000 - 6000
Powai
15000 - 17000
Senapati Bhagath Singh Road
3000 - 5000
Sion (East)
18000 - 21000
Sion (West)
17000 - 22000
Tilak Nagar
12000 - 22000
Ulhasnagar
3000 - 5000
Vikhroli
11000 - 14000
4 Bunglows
17000 - 28000
7 Bunglows
13000 - 23000
Chandivali
10000 - 15000
Malad (East)
12000 - 14000
Versova
21000 - 24000
Airoli
4000 - 8000
Belapur
6000 - 9000
Ghansoli
6000 - 8000
Kalamboli
4000 - 9000
Kamothe
4000 - 6000
Nerul
7000 - 10000
Palm Beach Road
12000 - 15000
Panvel
3000 - 6000
Sanpada
8000 - 10000
Sea Woods
8000 - 10000
Ulwe
3000 - 6000
Uran
3000 - 6000
Vashi
9000 - 12000
Altamount Road
62000 - 72000
Breach Candy
62000 - 74000
Chowpathy
48000 - 58000
Colaba
42000 - 46000
Cuffe Parade
67000 - 69000
Dadar(East)
32000 - 34000
Dadar(West)
29000 - 32000
Lower Parel
32000 - 34000
Mahalaxmi
38000 - 40000
Malabar Hills
68000 - 75000
Mumbai Central
23000 - 34000
Napean Sea Road
66000 - 74000
Parel
26000 - 34000
Prabhadevi
37000 - 39000
Tardeo
41000 - 49000
Worli
36000 - 41000
Andheri (West)
18000 - 20000
Andheri(East)
15000 - 17000
Bevarly Park
5000 - 7000
Bhayander (East)
5000 - 6000
Bhayander (West)
3000 - 5000
Boisar
1000 - 3000
Borivali (East)
11000 - 13000
Borivali (West)
10000 - 14000
Dahisar
4000 - 8000
Goregaon (East)
13000 - 17000
Goregaon (West)
12000 - 14000
Kandivali (East)
12000 - 14000
Kandiwali (West)
11000 - 12000
Malad(West)
9000 - 14000
Mira Road
5000 - 7000
Naigaon
1000 - 4000
Nala Sopara (Eastt)
3000 - 5000
Nalasopara (West)
3000 - 5000
Poonam Nagar
6000 - 8000
Shanti Nagar
7000 - 9000
Shrishti
6000 - 9000
Vasai Road
1200 - 4000
Virar
1000 - 3000
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