Upcoming Projects 2006
The real estate market in India is on a high growth curve, on the back of a booming economy growing at the rapid rate of 7-8%, favourable demographics and liberalised FDI regime, opening up immense potential and ensuring profitable return on investments.
Development in the NCR and Delhi region is on fast pace owing to infrastructural developments such as construction of expressway, flyovers, and metro and other projects in the wake of Commonwealth Games in 2010.
In the last few years, suburban locations, including Gurgaon, Greater Noida and Faridabad witnessed a substantially higher percentage growth in capital values due to extensive commercial activity for office spaces being leased and purchased in these areas. The increased development of the commercial belt resulted in a concurrent demand for quality residential space in these as well as the neighbouring areas.
Due to the sealing drive, the commercial rates in Delhi NCR region have appreciated with Delhi rates touching new highs. Keeping in view the sealing drive and the foreign retailers like UK's Liberty International, Wal-Mart, Carrefour, Tesco and Casino foraying into Indian retail market, investment in retail projects in prime areas of Delhi would certainly prove to be yielding good returns with prices expected to go double within 1-2 years.
Gurgaon, located towards the South of Delhi, has National Highway 8 running through it, ensuring good connectivity. Its proximity to the existing airport is an added advantage. Gurgaon residential property prices have shot up about 40% in the last six months and still it is likely to see a lot of action in the coming months.
With little land available for development in Delhi, over the years, Gurgaon and Noida have acted as viable suburbs for owning comparatively inexpensive real estate. The introduction of Metro railway in Delhi has, to a large extent, solved intra-city transportation problems. In case of Noida, the demand and the property rates may increase with the completion of a proposed airport.
Greater Noida has advantages of better connectivity, power and water supply. But the region is also witnessing lesser occupancy as many buyers are buying property for investment purposes.
The Commonwealth Games 2010, to be held in the east of Delhi, is leading to a lot of action in the infrastructure, hospitality and retail segment. Indirapuram, Dwarka and Kaushmbi have witnessed a lot of development in the wake of the Commonwealth Games.
Areas like Kundli and Manesar are upcoming with development. Kundli is witnessing residential projects with some of the big developers like TDI tapping the potential. IMT Manesar has certainly opened new possibilities for the investors, corporations and the developers. EROS Group is developing a corporate park in IMT Manesar with approx 5 lakh sq. ft. area.
According to Associated Chambers of Commerce and Industry of India (ASSOCHAM) the real estate market will grow to US $60 billion by 2010 from the present $16 billion. In 2006-07, FDI is expected to be $8 billion, with real estate having a share of 26.5%. This share is expected to increase by at least 10% by March owing to the entry of global real-estate players in the Indian market, with particular demand for office space for IT/ITES sectors.
A study on remittances conducted by Reserve Bank of India (RBI) reveals that in FY2006 of the total $11.04 billion invested by the diaspora in various instruments, $2.46 billion (Rs 11,070 crore) went into buying property.