Home » News » Real Estate

Presents

Co-Sponsored by

In Association With

Source: Moneycontrol.com

Kundli real estate - A good long-term investment bet

The real estate market at Kundli in the Sonipat District of Haryana holds great future potential owing to several current and proposed developments such as the Kundli-Manesar-Palwal or KMP Expressway

The real estate market at Kundli in the Sonipat District of Haryana holds great future potential owing to several current and proposed developments such as the Kundli-Manesar-Palwal or KMP Expressway, the Rs. 5000 crore Rajiv Gandhi Education City at Sonipat, the 100-metre-wide road from the IGI Airport to Narela, improved rail connectivity (Kundli is proposed to have a metro stop as part of rapid rail transport system), a proposed logistic park, a textile park, etc.

Moreover, Kundli enjoys advantageous proximity to the upper-middle-class residential catchment of North Delhi. Against the backdrop of a landscape that is being increasingly defined by mega education, institutional and industrial projects as well as rapidly enhancing infrastructure, the prospects for the realty market within the Kundli-Sonipat belt remain upbeat.

While the TDI Group, with its land bank of over 1250 acres, remains the premier developer in the Kundli region, others like Parsvnath Developers, Ansal Properties, Omaxe, Parker Group, Raheja Malls, Eldeco County, Anant Raj, Tulip Infrastructure , Collage Group, Eros Group, AJS Builders, Divine Group, Big Jos, Shree Vardhman and Jindal Greens are all present with projects of varying magnitudes in this belt.

Investment Potential

So far, the Kundli-Sonipat belt has offered moderate-to-good returns on investment in absolute terms. However, the ROI on real estate is somewhat lower when compared to the appreciation witnessed in other regions of NCR such as Noida and Gurgaon. The average plot price today is in excess of Rs. 25000 per sq. yard; a few years ago, when projects were first being launched there, the price tag for plots was more in the region of Rs. 5000 per sq. yard.

On an average, there has been 30-40% appreciation in apartment rates since 2007-'08, implying that the annual property appreciation rate in the Kundli region has been in the range of 6-10% on an average. Property rates in other regions of NCR such as Noida and Gurgaon have more than doubled in the same period. On the expectation of a boom on the residential market and increased scope for commercial activities in the area, commercial properties at Kundli have witnessed handsome appreciation of more than 50% over the last 3-4 years. The current rates for commercial property in the area are upwards of Rs. 8000/sq.ft. and are likely to maintain growth, albeit at a slow pace.

Coming Down From The High

All said and done, it is evident that the initial euphoria and optimism about the Kundli-Sonipat region is waning. This can essentially be attributed to the extremely slow pace of progress on the many proposed infrastructure projects there. Due to the delay in the growth of the KMP Expressway, the property market in the region has not taken off with the initially anticipated speed. Overall, the region lacks critical mass in terms of population, and it has yet to emerge as a preferred office destination for IT/ITeS organisations. The occupancy level in the existing projects is just around 25% and could even be lower.

Apart from this, basic infrastructure like schools and hospitals are yet to make a convincing appearance in the region. The affordability tag - which used to be a prominent driver for investors who were discouraged by the much higher ticket sizes in other NCR areas - is gradually losing relevance. Prices have reached levels that place all good options beyond the financial appetite of retail investor. That said, the price points at Kundli are still lower when compared with other areas of NCR and do still fall in the affordable range.

To Summarize...

From a future investment perspective, this region will essentially continue to remain promising due to its proximity to North Delhi and the Delhi borders. Property investors with constrained budgets can still explore Kundli for its affordable options. If the Government shows renewed commitment towards the proposed infrastructure and development initiatives, the Kundli real estate market can certainly get into higher gear. Investors should maintain an investment horizon of at least 3-5 years in order realize decent ROI, as it will take at least such a period for the region to develop sufficiently.

ADS BY GOOGLE

Ask the Experts

Get your Personal Finance queries answered

  • Q

    If I put Rs 2 lakh in PPF, how much tax rebate I will get?

    A

    As per the existing guidelines and rules a person cannot deposit more than 1.5 lacs in one PPF account. However you can deposit money in the...

  • Q

    Interest rates are going to go down. And all my fixed deposits will be maturing next year. I will have to renew my fixed deposits next year at lower rate of interest. What is the way out?

    A

    Interest rates keep fluctuating due to various micro- and macro- economic factors. There is never an ideal rate of interest. In a high inter...

  • Q

    I want to buy online term life insuance plan. Which is the best one? Should I go for single premium or regular premium policy?

    A

    Single premium term insurance policies don?t make much sense. Why pay such a large amount at one go when you have the option of paying in sm...

  • Q

    I want to invest some money with at least ten years view. I dont want share market risk. Can I invest in NSC? Is there any other investment option?

    A

    NSC or National Savings Certificate is a safe investment scheme offered by the Central Government. It is an ideal option for investors with ...

  • Q

    Is it a good idea to invest in asset allocation funds? if yes, please suggest some good fund to invest money. I am 35 years old and can invest Rs 10000 per month.

    A

    Asset Allocation Funds are for those investors who want to take an exposure into different asset classes but do not wish to create their own...

  • Q

    My CA says that I have to pay tax on interest accrued on my FD of Rs 20 lakh. I have submitted form 15H in all banks. Is it necessary to pay tax in this case?

    A

    In case of interest on fixed deposits which is taxable under the head ?Income from other Sources? a taxpayer has two choices. Either you can...

  • Q

    Please suggest a good investment option of land in South India. I want to buy a land parcel of around 2 acres.

    A

    If you take a look at the South Indian real estate market, Bangalore has emerged as a clear winner. Due to the strong presence of IT/ITeS an...

  • Q

    I want to invest Rs 20000 per month. I have identified Reliance Small Cap Fund and DSPBR Micro cap fund for investment. I can hold to investments for two years. Is it a good idea to invest in these schemes? How much returns I will be getting?

    A

    If you are an aggressive investor, you can consider investing in either of the 2 funds.DSPBR Micro Cap My suggestion is that if you are inve...

  • Q

    I want to save my money for retirment Please suggest a good insurance policy

    A

    For retirement it is advisable to use multiple investment instruments and not just life insurance policies. If you have 15 years or so for r...

  • Q

    IS IT a Good time to invest in GOLD ?

    A

    Currently the outlook for gold is bearish/negative. However if you are planning for a long-term investment in gold it is ideal to invest the...

  • Q

    I have retired from my job in November. I have got Rs 48 lakh from my employers, by way of epf, gratuity and other benefits. Should i invest in senior citizen scheme of LIC? How about pension plans from LIC?

    A

    1. You can invest Post office Senior Citizen Scheme. 2. You also should invest lumpsome in MIP in post office and get monthly interest. 3. K...

  • Q

    I want to save Rs 1 crore for my retirement when i turn 60. Now I am 42 years old and have fixed deposits worth Rs 18 lakh.What should I do to reach Rs 1 cr mark?

    A

    start investing a minimum 5000 per month in mutual fund and increase 10% to 20% every year....

  • Q

    I want to save on my utility bills and fuel expenses.Please suggest a good credit card for me.

    A

    Yes, you will be able to save on Utility bills and fuel expenses through the cash back schemes offered by some of the credit card companies....

  • Q

    Suggest couple of equity mutual funds for me. I am keen to invest Rs 25000 per month for next couple of years. I can remain invested for at least five years?

    A

    Asset Allocation Funds are for those investors who want to take an exposure into different asset classes but do not wish to create their own...

  • Q

    I am a senior citizen.I received interest of Rs .1,70,000/- on FD.I have duly filled 15G form.I have NO other source of income.Have I to pay Income tax on this interest or can it be excempted?

    A

    Sir, please note if you are less than 80 years but more than 60 years of age, your total income upto Rs 3,00,000 is exempt from tax, you are...

  • Q

    Please suggest a good money back policy for me. I am 27 years old and want to accumulate Rs 10lakh over 10 years.

    A

    If you are a fan of traditional money back policies, go in for the LIC New Money Back Policy of 20 or 25 years. I would suggest you go in fo...

  • Q

    I want to buy a life insurance for my brother Please suggest a good policy. He is 19 years old. he should get Rs 5 lakh when he turns 25 years.

    A

    Best to go in for a ULIP in case he is looking to grow the money also. Go in for a ULIP like HDFC Click 2 Invest which is very low on charge...

  • Q

    In 2013, I bought an Endowment policy from LIC. Premium for that is around 35K per year. Now i understand, this was a big mistake and i want to go for a term insurance policy. I have already paid two premiums in 2013 and 2014 and I want to make this policy paid-up. Can i pay one more premium this year and make that endowment policy paid-up ? Or is there any better alternative ? Please suggest.

    A

    Yes, you can convert to a paid-up policy after 3 years premiums have been paid. I would recommend that you surrender the plan and take back ...

  • Q

    Is zero depreciation cover a good option under auto insurance? I have plans to buy honda city in January

    A

    Zero depreciation is a good option to along with the standard car insurance plan. By paying a slightly increased premium you can ensure that...

  • Q

    I am 20 years old,I am getting 17+ % or returns from share in my portfolio consistently for the last 6 months.should i think about a career in stockbroking?

    A

    Its nice to note that your portfolio has been gaining such high returns, however it might be too early to take a call and make stockbroking ...

Explore Moneycontrol

Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.