Home » News » Real Estate

Presents

Co-Sponsored by

In Association With

Source: Jones Lang LaSalle

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.

Infrastructure Development

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.

Investment Potential

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


Price Points

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.

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

    I am 36 years old and work in private company. so how can I manage my retirement planning...

    A

    Start with how much you would need monthly today, inflate the numbers and we can work on a corpus and then work on investing monthly towards...

  • 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...

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.