FOREWORD - MagicBricksproperty.magicbricks.com/.../delhincr-jul-sep-2016.pdfFOREWORD Mild tapering of inflation and a normal monsoon finally paved the way for lowering of REPO rate

FOREWORDMild tapering of inflation and a normal monsoon finally paved the way for lowering of REPO rate by 25 basis points, taking it to its lowest level in the last 5 years. The continued fall in both imports and exports, coupled with tepid investment demand has led RBI to pass on the cut. The Y-o-Y GDP growth rate also slowed down from 7.9% in the JFM quarter to 7.1% this quarter. The expected rise in oil prices from next year is also a major concern for the economy, which imports most of the oil it needs. High NPAs in the banking sector and construction delays in infrastructure and real estate also remain as major concerns.

However, the economy remains strong despite headwinds facing the world economy and geopolitical turmoil across Asia and Europe. The Manufacturing Purchasing Managers’ Index (PMI) is still above 52 level and GDP growth forecasts till 2020 by various multilateral agencies, remain above 7%. The lowering of Repo rate is expected to bring down both project finance as well as home loan costs, lowering the overall cost of buying a house.

The inevitable implementation of Real Estate Regulation and Development (RERA) Act, 2016 has led developers to hasten the delivery of their projects. This trend was clearly evident in the quarterly average prices data of Under Construction (UC) vs Ready-to-Move-in (RM) stock, where the premium commanded by RM properties came down due to increase in RM stock, as a portion of UC projects were delivered over the quarter.

RERA is a step in the right direction but will bear fruit only in 2-3 years, and till then the Indian real estate sector remains in turbulent waters, and its health can only be gauged through inferential means like pricing and inflation in the sector.

Price, as an end-product of interaction between the underlying demand and supply elements, incorporates all the sector related imperfections like delays and surge/dearth of transactions. Its trend also serves as a guidance to fiscal decision making by the government and RBI and investment decision making by private equity funds and retail home buyers.

Real estate in every city is heterogeneous and each locality and project can be mapped to different budget segments and geographies. Each budget segment and geography corresponds to a certain share of supply and consumer preference in the market.

Towards this end, Magicbricks presents a holistic price Index for each of the 14 major cities in India. The City Index reflects the price movement across localities, geographies and budget segments in the city. This bottom-up approach helps to identify factors affecting demand-supply dynamics of the city.

Analysis of City Indices over a 3-year period shows that Navi Mumbai had the highest gain of 18%, while New Delhi continued to face tough market with a 21% decline.

Regionally, Western India performed the best with 8.9% average gain, followed by South with 7.6% increment. North India saw an average decline of 7.4%, while Kolkata had the same average price as eleven quarters ago. It is important to note that any gains made are eroded when benchmarked against inflation in economy, in the study period.

Another important sign of our times is the 8% premium commanded by the Ready-to-Move-in (RM) properties over the Under Construction (UC) properties at a pan-India level. This ratio was at 5.1% eleven quarters ago and is a reflection of the falling consumer confidence in timely delivery of projects.

These are changing times and we would love to hear from you. Do write to us at [email protected] and share yours views on this report and how we could make PropIndex even better.

Sudhir Pai CEO, Magicbricks.com

METHODOLOGYRealistic price discovery has been the biggest problem area in the Indian real estate market. As consumers and industry struggle to arrive at a realistic benchmark pricing to assess the true value of their individual units, Magicbricks, as the largest repository of residential property listings, brings you the trusted Indian Apartment Price Index in a new and easy to use format. Mirroring the Indian Real Estate scenario, this price index presents an animated representation of the real estate market.

Magicbricks publishes the quarter-on-quarter inflation and deflation trends of the residential real estate prices in India. It collects real estate demand-supply data on a daily basis for more than 100 cities in India, of which, the fourteen top cities are selected for computing the National Property Price Index.

The National Property Price Index and its constituent indices are subjected to a series of stringent steps.

Each quarter, Magicbricks measures the individual property level price changes, which are then aggregated at the locality level. While comparing the average pricing figures for the current quarter and comparing with the previous one, quarterly price changes are calculated. These price changes are further aggregated at the city level and even further at an all-India level.

As the top receiver and aggregator of residential demand, Magicbricks’ data provides consumers with realistic benchmarks to the assess true property pricing. Where demand exceeds supply, consumers have no chance of negotiating values.

However, where demand is far lower than supply, buyers can look for more options and therefore, negotiate

pricing. If, on the other hand, you are a seller looking for benchmark pricing, you will effect the fastest sale if your asking values are close to the buyer’s paying power.

There are various co-relations of demand and the overall real estate market as well as its future potential. Not only is demand a preceding indicator to supply, it is also a fairly good indicator of actual transaction activity in the region.

We have aggregated the 14 cities covered under the report into various localities. While calculating the city level property pricing indicator, we have applied demand as weight to each locality. This weight is equal to the locality’s share of the demand being contributed to the city’s total demand. As a consequence, the locality receiving higher demand for residential units will be given a higher weightage. Following that, each city’s price movement is calculated by aggregating the price movements of individual localities, according to their individual weightages.

In terms of checks and balances towards making the data and analysis more robust and objective, we have made sure that superfluous information does not deviate the desired results. Hence, we have applied checks and balances at the locality level listing data collection and aggregation.

A statistical technique called “Inter-Quartile Range” (IQR) has been used to ensure that unintentional input deviations of house size and price figures, which may distort the actual value of the house and corrupt the analysis, are addressed. The technique aims to remove the outlier data sets, while securing the correct values.

The Interquartile Range technique works through measuring variability of each data set, while dividing the data set into quartiles. The technique measures the value of data points on the first and third quartiles of the data and calculates the difference between the two.

This range, called ‘IQR’, gives the effective extent of data set, while removing the first 25% and the last 25%. Subsequently, a test is applied to each of the values in the data set. If a particular data lies within an IQR of the first and third quartile values, then that data is considered part of the data set, otherwise not. The set of listing values of each locality are statistically cleaned.

Magicbricks, on an average, covers more than 500 localities for Tier-I cities of India. Yet for the sake of analysis, we take only those localities where the recipient demand is at least 0.05% of the city’s total demand. Only localities with at least 50 actively traded properties have been included in the analysis. Following that process, we shortlisted various localities which in some sense, impact the pricing dynamics of the city.

We then calculate the average prices of the city for the quarter, while applying demand weights to the average prices of each locality. These average prices at the city level are further aggregated to the final outcome of the ‘National Price Index’.

The difference in Under Construction and Ready-to-Move-in property has been assessed and included in the report. Rental yield and affordability too has been addressed for the top 10 localities by supply in every city. These are critical tools which well used can help with realistic price discovery.

GLOSSARY & DEFINITIONS1. City Property Index :This is a composite index which is a function of supply of properties as well as

the average capital appreciation/drop in various localities of the city in the quarter. The City Index is the weighted average of the average rate per square foot in that locality and the supply of properties from that locality. Localities with higher supply of properties will have a bigger impact on the Index.

2. Price trend basis budget segments: To better understand the city’s price trend, the localities have been divided into budget segments basis their capital value (Rs/sq ft). We have tracked the weighted average price for each budget segment for a 2+ year period from quarter ending September 2013 to quarter ending September 2016.

Subsequently, the movement of the localities in each price segment is mapped to derive respective short term and long term price change trends. The number of budget segments vary according to the city characteristics.

3. Zone wise distribution of localities: The various localities in the cities are all geographically divided into five key regions: Northern, Southern, Eastern, Western and Central. The localities are analyzed at the local zonal level to better understand the effect of the various drivers of price and demand, which are active mostly at the zonal level rather than at the city level.

4. Zone wise distribution of property budget segments: To better understand how each of the city zones contribute to the city’s supply, and how they are able to provide housing at various price points, the supply is distributed into budget segments across various geographic zones. For instance, if a zone has most of its supply in the premium budget segment, then it naturally becomes a premium destination within the city. The price changes within the various budget segments are also analyzed at the zonal level to go to the depths of the price changes across the city and to easily contribute the price changes to local factors.

5. Capital Value Tables (given in Annexures): This shows the actual range of prices within which properties are available in each locality in the quarter. Prices are shown in Rupees per square foot basis, these are the prevailing rates for properties in each locality.

6. Price trend – Top 10 localities by consumer preference: This section presents the price trend of the Top 10 localities in the city by consumer preference. These localities have the highest consumer focus and assessment of price trend in these localities assists in understanding the prevalent and future price trend in the city.

7. Price trend basis construction status: This Index looks at the movement in prices of Under Construction (UC) and Ready-to-Move-in (RM) properties across localities in the city. It is a weighted price index where weight is assigned to each locality basis its share in the consumer preference in the city.

What is the PropIndex?

The PropIndex gives you locality-wise property values in two forms – as locality price ranges for sale and rent in the annexure to every city with additional information on whether it has gone up or down in the quarter, and what is the rental yield in that locality. These prices are based on the listed prices of properties for sale or rent on the website www.magicbricks.com. This helps you to understand the average locality price ranges and to assess whether the price of the property for sale or rent that you are assessing, lies within the average price ranges in the locality. In a market where data or information is hard to come by, this data helps you to assess whether you are being quoted rational values for the property you are considering.

Why do I get locality sale and rent prices and how do I use them?

When you buy a property you must know what the average locality prices are. When you buy property directly from the developer, the price per sq ft is the value you pay. Then there are additional preferred location charges (PLC) such as vastu related, view related or floor related. When you buy from the secondary market or from an individual seller, the price is determined basis a notional value of the property. The sale values in the PropIndex help you to establish the price you should demand if you are a seller or what you should pay if you are a buyer. Rental values, similarly, are the average values that are listed on the website. They serve as benchmarks of the expected rental prices in the locality.

What is rental yield and why is it significant?

If you pay a certain price for a property, there is an amount you earn per annum as rent. When the rental income is expressed as a percentage of the property value, it is rental yield. It is a good yardstick to compute which property to select as a Buy to Let investment.

Why is it called a Property Index and not Property values?

Magicbricks has a very large number of listings. The number per locality depends on market conditions and how many consumers or brokers or developers choose to post their properties for sale or rent. When we are computing values at the locality or city levels we do not want any one locality to skew the index value of the city. As a result when any one or more localities have more than usual or less than usual number of listings, using the ratio of price to number of listings helps to even out unusual spikes or troughs in the data. This gives you unbiased city or locality averages.

How do I use an index number?

Magicbricks Index was computed first in 2011. The values in the year 2011 have been used as the base value and is assumed to be 100. When the value is below that

base number, the index is said to have fallen. When it is more than that number, the index is said to have gone up. This gives users like you, who are interested in property markets, an idea of how the property market in your city has performed vis-à-vis other cities. When the economic conditions are good and the builder is actively developing and the consumer is actively buying, the index value rises above 100. When markets are flat due to lack of economic activity and therefore developer and consumer disinterest, the index values remain at 100 or drop below that.

Very high index values shows a lot of investor activity and therefore severe peaking of property values. As an end user you should avoid buying when there is intense buying and speculative activity. That however, is a good time for you to sell as high property prices will give you good returns on your investment. When the index value comes down dramatically, the chances are that you will not get good returns as a seller. But if you find the property that you like in this cycle, it is a good time to negotiate the best values and buy as the chances are that there will be fewer buyers in the market. Since the PropIndex is now 5-years old, a look at how the index values have moved over the years gives you a good idea of how the market has performed in different quarters. If you are interested in how property markets have performed across a period of time, the PropIndex values give you a fair idea of the movement.

Do I get any specific Advice that helps my property decisions?

Magicbricks has a team of data scientists and researchers who are constantly studying the property markets and values to get the trends. In the past two quarters, for instance, they have noticed that ready-to-move-in property has been significantly more expensive than under construction property. This probably indicates that consumers do not want to buy property that is not complete and has chances of delayed delivery and prefer to spend more to buy property that they can purchase and move into. This is useful to you as a buyer and alerts you to general trends of other buyers.

What is the editorial and how is it useful to me?

The editorial team of Magicbricks constantly assesses the property market developments and factors such as infrastructure announcements and transport corridor development, to figure out how they can impact values of residential real estate in your city. In each edition of PropIndex they assess what all has happened in the quarter and how it will impact the value of the property that you are interested in. This analysis gives you an idea of the issues you should consider when buying property in that city.

How do I use the different sections of the PropIndex?

The key takeaways are useful in getting an overview of the property market in your city. The geographical distribution of localities allows you to assess in which areas property is available for sale. The distribution of properties by capital value allows you to freeze the price segment where you are likely to get the type of property you are looking for. The budget wise price change helps to compute how the price range that you are looking for has been performing. If values have been rising in your budget of interest you may have to hurry up with your property decision if you are an end user. If it has dropped, figure out if there is a problem in that category. This exercise has been done for each part of the city. The price trend by construction basis tells you which the best stage is at which you should enter the property market. The price changes basis construction status takes this analysis a step forward. Read it carefully and you will be able to assess exactly when you should enter the market as a buyer and as an investor.

What is the Corridor of Growth?

Magicbricks has figured that the bulk of new property in any city is developed along a few transport corridors leading out of the city. These have been identified and studied for stock, price rise, current status, future potential and its physical and social infrastructure such as water, power, sewerage and drainage facilities, transport links, schools, colleges, hospitals and entertainment centres in the vicinity. Advice has been given on the basis of rental and buyer’s demand, the best configurations to buy – 2, 3 and 4BHK, past and future estimated price trends and also how it figures in the master plan of the city. News updates of each corridor allows you to understand the drivers of those corridors.

HOW TO USE THE PROPINDEX

Jayashree Kurup, Head content

In line with general lack of activity in the residential market, the National Property Index remained stagnant at the same level

as in the last quarter, with prices falling by a marginal 0.12%. This is in continuation of the inactivity seen in the last many quarters.

NPI is the weighted average of consumer preference share of 14 cities and their individual City Index value.

On a quarterly level, South was the only region which inched up substantially in terms of prices from the last quarter while North fell the most. Although it cannot be said with certainty that prices have hit rock bottom and will not fall any further, any downward movement, going forward, will be restricted.

On a three year scale, Western India has done better than all other regions, with its cities having 8.9% price increment, on an average.

The worst performer was the North region, where prices fell by more than 7% in the last three years. The second best gains were witnessed in Southern India, where prices moved up by 7.6% over the same period.

In terms of historical price change, Navi Mumbai was the best performer with a significant 18% increment over the last three years, followed by Hyderabad and Pune, which had a 10% gain each. Thane stood fourth with a 9% gain, while Bengaluru and Ahmedabad had a 7% gain each. Next were Mumbai and Chennai with a 5% gain each.

Gains of lower than 5% were witnessed only in the North and Eastern regions, with Noida and Greater Noida showing the maximum gain in Delhi-NCR of just 4% each. Both, Gurgaon from Delhi-NCR and Kolkata from the Eastern region, had the same price in the Jul-Sep

2016 quarter, as three years ago. Only two of the top 14 cities considered for PropIndex saw a price decline in the last three years and both belonged to Delhi-NCR. While prices in Ghaziabad fell by 6%, New Delhi performed the worst, with a whopping 21% fall in prices.

In terms of quarterly change, Hyderabad performed the best with a 2.8% increase over the last quarter, followed by Bengaluru at 2.0% and Navi Mumbai at 1.2%. Overall, the Southern region was the best performer, with Chennai also giving a 0.7% price increment and standing fourth in the top 14 cities.

In terms of worst performers, four cities saw price drop, with the highest drop in Greater Noida of 1.7%, followed by Noida witnessing a drop of 1.2%. Mumbai and New Delhi were the other two cities noting a price drop, amounting to 0.8% and 0.7%, respectively.

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[Jul-Sep 2016]

[Buyers looking for an exit]

The realty sector in India has been tepid for the past few years with low transaction volumes and stagnant price level. Weak

economic scenario, perceived high price level and lack of consumer confidence in the developers with respect to project completion led to transaction volumes reducing drastically.

Magicbricks research shows that consumers are willing to pay more for Ready-to-Move-in (RM) options as compared to under-construction (UC) properties. They’re willing to pay a premium on completed projects rather than expose themselves to delivery risk. Project delay leads to consumers having to bear additional financial burden of paying rent over and above applicable home loan instalments for an extended period. All this has made consumers wary of putting money in Under-Construction projects.

This is reflected in the price differential between Under Construction (UC) and Ready-to-Move-in (RM) properties. Magicbricks tracks the weighted average price for UC and RM properties on a pan-India basis covering 14 cities. It compares the 3 year trend from Sep 2013 to Sep 2016 where Sept 2013 has been taken as the base. It also shows the premium (discount) of RM properties over UC properties.

Our national level index for tracking prices of RM and UC properties shows that at a pan India level, RM properties command an average 8% premium over UC properties. This level of premium for RM properties has held for the last three quarters.

Analysis of actively traded properties on Magicbricks shows that when it comes to RM properties, an overwhelming number of options are in the resale segment. At a pan-

India level, 69% of RM properties are in the resale bracket while balance 31% are offers of fresh booking or ‘New Properties’. The graph gives the share of resale and new properties for each of the 14 cities analysed.

The predominance of resale options under RM properties category indicates that many buyers who had made purchase from an investment perspective are looking to exit their investment. With end-users looking for RM options to protect themselves from project completion risk, it is likely that many investors with RM properties see this as the best opportunity to liquidate their asset(s).

Most of the investors looking to exit at this point are unlikely to make any gains. In many cases, when the return is indexed to inflation, the return might actually be negative. This is because the prices have either been stagnant or have seen insignificant increment over the last few years. The following graph shows percentage change in the City Price Index for 14 cities from Sep 2013 to Sep 2016.

As is evident from the graph, the weighted average price across most cities has seen marginal increment over the last three years. In case of cities like Delhi and Ghaziabad, the price levels have declined. In all other cases, when the price increment is indexed to inflation, there is an implicit price decline.

Regional wise analysis of the ratio of ‘New’ and ‘Resale’ options under RM segment shows that

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markets which historically had high investor to end-user ratio have corresponding higher percentage of ‘Resale’ options in this segment.

Major North Indian markets like Gurgaon and Noida, which have seen large scale residential development, have 80% or higher ‘resale’ options in the RM segment. Similarly, all Western Indian cities have a high share of such options in the RM category. Opposite phenomenon was seen in case of all South Indian cities – Bengaluru, Chennai and Hyderabad. These markets have had high end-user participation and this reflects in the ratio of ‘New’ and ‘Resale’ options. Both these options have almost equal share in the RM segment in these cities.

These statistics also indicate that supply in markets with high ‘resale’ versus ‘new’ options in the RM category was in excess to demand at the given price points.

Market ImpactPresence of a large number of resale options puts pressure on the market in multiple ways:

l First, these resale options add to the unsold inventory available with developers, thereby exacerbating an already difficult scenario

l Large number of resale options in Ready-to-Move-in projects take the demand away

from Under-Construction projects. One set of inventory is getting sold multiple times while another set with the developers remains unsold. This is adding to delay in completion of projects as developers are not keen to complete projects where unsold inventory is on a higher side

l In the prevailing market scenario, large resale inventory also impacts the price level in a project as well as overall market. Price quote in the resale market is lower than the builder’s price and this impacts saleability of the unsold inventory with the developer. Further, the developer cannot increase the price and out-price his inventory vis-à-vis resale options

l New project launches also have to be sensitive to the prevailing price in the resale segment in their price segment

ConclusionIdeally, transaction activity in the resale segment gives depth to the primary segment. It allows investors to book profit and unlock their capital. However, in the present scenario where transaction activity is low and consumers are looking for Ready-to-Move-in options, the resale segment is likely to do better than the primary market and continue to put pressure on the primary market.

Given the large percentage of resale properties available in the market, this situation is likely to persist in short to medium term.

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[PROPINDEX - DELHI][Key Takeaways]

Delhi on a slow moving pace

Innovation, infrastructure development, redevelopment works, town planning, amongst others kept the capital busy this

quarter. The government was in its finest in relegating work to local bodies and keeping a watch over them.

The well-known Pradhan Mantri Awas Yojana and other programmes have adopted prefabricated alternative technology to ensure prompt, safe and sustainable construction. HUPA, CPWD, DDA and NBCC will also adopt these innovative technologies for projects worth Rs 100 crore and above each. This is a smart move since these are cost-effective and reduce the cost for both builders and buyers.

DMRC is in the final stage of construction of Metro lines 7 and 8, and will design and

construct nine stations with multi-modal integration (MMI) points. Phase-III will have Mayur Vihar Phase-I, Trilokpuri, Vinod Nagar (East and West), IP Extension and Mayur Vihar Pocket-I stations in line 7 (Majlis Park to Shiv Vihar). For line 8 (Janakpuri West to Kalindi Kunj), stations havin MMI are Okhla, Ishwar Nagar, Jasola and Jamia.

To attract serious buyers, DDA is set to float a new housing scheme to re-sell 13,000 flats that were returned by the 2014 housing scheme allottees which had 25,000 flats on offer. This time the land-owning agency plans to increase the earnest money to Rs 5 lakh for MIG flats, which will be forfeited if s/he returns a flat. The decision has caused some ripples as buyers are against forfeiture. This seems logical as it is difficult to block Rs 5 lakh. Often, people don’t

like the house that is offered and want to return it. Whether DDA would reconsider its decision or go ahead is still to be seen.

Delhi is re-planning its wholesale markets. Integrated Freight Complexes (IFCs), multi-modal freight complexes and commercial centres with better facilities need to be meticulously planned. A detailed survey will be carried out to identify trades that need to be relocated, while improving management and facilities at existing hubs. Shifting wholesale trade should also ensure that the number of trucks entering the city remain restricted.

With real estate rates falling below circle rates, the volume of transactions in NCR has gone down. It is hoped that the year ends on a positive note with festival offers afloat.

Magicbricks Bureau

EDITORIAL

The Jul-Sep 2016 quarter City Index witnessed a 0.66% decrement over the quarter. In the quarter, almost 70% of the localities witnessed a price decrement

The quarterly price movement data shows that prices across only two out of eight budget segments improved from the last quarter.

Price rise was witnessed only in the lower budget segments of less than Rs 8,000 per sq ft, due to properties in the higher budget segments getting cheaper and moving to the lower segments. Overall, prices fell across properties in the quarter. Other segments fell significantly, between 0.7% to 2.3%

In geographical terms, East Delhi provides residential options to buyers in the lower-mid and mid segments. In terms of supply, East Delhi hardly compares with South and West Delhi and contributes only 13% of the city’s supply. The region witnessed 0.8% decrement on an average over the last quarter

North Delhi, led by Rohini, provides relatively less quality residential options and caters to budget and mid segment buyers. Prices in the North region also fell by 0.9%

In West Delhi, where Dwarka actually forms the bulk of the supply, prices increased by 0.5% over the last quarter

South Delhi forms one fourth of the city’s supply and witnessed price decrement of 1.4% in this quarter

Analysis across 68 localities in Delhi shows that on an average, Under Construction (UC) properties were 2.6% more expensive than Ready-to-move-in (RM) properties in the Jul-Sep 2016 period. While the weighted average price of RM properties was Rs 10,498 per sq ft, the same for UC properties was Rs 10,773 per sq ft

RM prices for almost all key localities fell. In terms of price decline these were Dwarka, Paschim Vihar, and Vasant Kunj, where both UC and RM prices fell significantly

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Properties distribution by capital value (Rs/sq ft)Apr-Jun 2016 to Jul-Sep 2016

The graph shows the distribution of actively traded properties by their capital values. The properties are distributed over a wide range dominated by entry level budget segments. Although the range of expensive properties is wider than any other city except Mumbai

In spite of such a wide range of available properties, almost half the city’s supply is concentrated in the Rs 3,000-8,000 per sq ft range

The budget segment, servicing the lower middle class, with pricing in the range of Rs 3,000-4,000 per sq ft, forms 32% of the city’s supply

The budget segment servicing the middle class, with a price range of Rs 4,000-8,000 per sq ft now forms 15% of the city’s supply. This segment was the hardest hit, with a significant portion of properties moving to less than Rs 4,000 sq ft during the quarter

The map shows the geographical spread of localities considered for calculating the City Price Index. The localities have been grouped to understand the zone wise price trend in the city

Delhi has had a more geographically dispersed development compared to some of the other prominent cities. Except the north side, the city has concentrically grown across all directions

The city has historically grown in an asymmetrical fashion and there are pockets of residential developments between office complexes, green areas and other places of importance. Being the capital of India, Delhi houses a lot more government complexes as well as buildings of national importance. Delhi also has a significant percentage of rural areas on its boundary. These include L Zone, N Zone, P1 and P2 Zones, and J Zone

The localities considered for PropIndex account for 77% of consumer preference and 67% of actively traded properties in Delhi

Geographical distribution of localitiesSouth Delhi dominates the development landscape


The City Index for Delhi reflects the price movement across 68 prominent localities. These localities have been chosen using the twin criterion of share in overall consumer preference in Delhi. The weight assigned to each locality is

its share of consumer preference in the city. This makes for a comprehensive Index which covers localities with high consumer preference as well as high number of actively traded properties in the secondary market

The City Index saw a 0.66% decrease. The Jul-Sep 2016 quarter had more localities with price decrement than price increase. Almost 70% of the localities witnessed price decrement averaging 2.3%, pushing the Index down by 1.6%. The balance saw an average increase of 2.9%, pushing up the Index by 0.9%

The budget segment servicing the upper middle class, with a price range of Rs 8,000-10,000 per sq ft forms another 20% of the city’s supply

Properties costlier than Rs 10,000 per sq ft forms 32% of the city’s supply, moving down from 40% last quarter

West Delhi is mostly characterized by properties costing less than Rs 12,000 per sq ft on an average while North Delhi with areas like Pitampura and Rohini, has supply in the Rs 12,000-17,000 per sq ft as well as the Rs 4,000-8,000 per sq ft ranges

South Delhi is undoubtedly the costliest region of the city and except a few pockets like Mehrauli and Chattarpur, all other micro-markets in the region have prices above Rs 10,000 per sq ft and go upwards of Rs, 26,000 per sq ft

The east side, similar to the west, has most of the properties costing less than Rs 17,000 per sq ft on an average

[CITY INDEX]Jul-Sep 2013 to Jul-Sep 2016


Budget wise price changeApr-Jun 2016 to Jul-Sep 2016

To understand the contribution of various budget segments and localities in the Index movement, we have grouped 68 localities under the Index

The quarterly price movement data shows that prices across only two out of the eight budget segments improved from the last quarter. Price rise was only witnessed in the lower budget segments costing less than Rs 8,000 per sq ft, due to properties in the higher budget segments getting cheaper and moving to the lower segments. Overall, prices fell across properties. All other segments, with prices above Rs. 8,000 per Sqft, fell significantly, between 0.7% to 2.3%

The price movement across zones:

East East side of the city provides decent

residential options catering to lower and mid segments, constituting 13% of the city’s supply. The prices moved down by 0.8% in this region

In this zone, 70% of the supply is concentrated in the Rs 8,000-17,000 per sq ft budget range

Mayur Vihar and Sarita Vihar are the key localities of this region which have prices in the budget range of Rs 9,000-12,000 per sq ft

North North Delhi provides least number of

quality residential options, catering to budget and mid segments. Prices moved down by 0.9% in this region

Rohini sectors form a key fraction of the supply in this region, where a significant portion of the supply is formed by the DDA developed residents

West In West Delhi, developments is spanning

for the last 15 years in the Dwarka area. It supports a whopping half of the total

Geographic and budget wise price changeApr-Jun 2016 to Jul-Sep 2016


supply for Delhi. Prices moved up 0.5% here. The planned development of L-Zone also falls in this zone. Most of the supply in the Dwarka sectors is in the Rs 8,000-10,000 per sq ft range

South In South Delhi, with its mostly planned

development with excellent social infrastructure, prices moved down by 1.4% in this region

Most of the supply in premium localities here start at Rs 17,000 per sq ft and goes upwards of Rs 30,000 per sq ft

Centre Central Delhi contains the costliest

localities, but the amount of supply available for sale is extremely limited as a significant portion of the housing options available here are in the government housing domain.

Anand Niketan is the key locality in this zone, with an average price of Rs 35,000 per sq ft. The prices moved down by 1.7% in this region

Price change – Top localities by consumer preferenceApr-Jun 2016 to Jul-Sep 2016

Price trend basis construction statusJul-Sep 2013 to Jul-Sep 2016


Price change basis construction status Top localities by consumer preference in Jul-Sep 2016 period

The graph shows the trend in prices of ‘Ready-to-Move-in’ properties (RM) and Under Construction (UC) properties. Analysis across 68 localities in Delhi shows that on an average, UC properties were priced 2.6% more than the RM properties in the Jul-Sep 2016 period

The average percentage difference in the Under Construction versus Ready-to Move-in prices remained more or less stagnant over the last four quarters.

While the weighted average price of Ready-to-Move-in properties was Rs 10,498 per sq ft, the same for UC properties was Rs 10,773 per sq ft during the quarter

The average price of UC properties increased by 1.3%, while for RM properties, it decreased by 1.4% in the quarter

In terms of cumulative price change, RM

properties posted a price decline of 14% over the Sep 2013 to Sep 2016 period, while UC properties moved down by 23% in the same period

The graph below shows price trend in the top 10 localities in Delhi by consumer preference. RM prices for almost all key localities fell. In terms of price decline these were Dwarka, Paschim Vihar and Vasant Kunj, where both UC and RM prices fell significantly

GURGAON propindex.magicbricks.com VOL6, ISSUE 2; JUL-SEP, FY 2016-1710

[PROPINDEX - GURGAON][Key Takeaways]

Gurgaon on the right track

Gurgaon might not have scaled the highest in terms of transactions this quarter, but it is amongst the top three metro cities

in India to have seen construction works. These include Rs 3,949 crore worth 27 projects which are expected to be launched or inaugurated in the coming one year. HSIIDC mentions these as NCR water supply scheme for IMT Manesar, Mega Food Park at Barhi, Incubation Centre in Apparel Manufacturing at Panipat, the Global City project in Gurgaon and the Kundli to Manesar stretch of the KMP Expressway.

The NHAI board has approved Rs 350 crore to complete the much-delayed Gurgaon-Jaipur stretch of NH-8. The widening and maintenance work will resume after a brief hiatus. Improved infrastructure always has a positive impact on the real estate market.

Municipal Corporation of Gurgaon felt the pressure from Gurgaon residents to take the onus of maintenance works such as incomplete infrastructure and facilitation of amenities, etc. Once the MCG takes over, residents hope the quality of services will improve. Citizen participation is the key to successful running of state machinery.

Moving a step closer to providing basic infrastructure in Gurgaon’s new sectors, HUDA is soon going to complete the land acquisition for the master roads in Sectors 68-74 along the Southern Peripheral Road of the city. It also gave alternative plots to oustees of Sector 81-95 master roads. This will ensure the connectivity of these sectors with NH-8 and Dwarka Expressway.

HUDA razed down seven buildings coming in the way of Sector 37C-37D Road, which will enhance the area’s connectivity to other parts of the city via the Gurgaon-Pataudi Road.

To help the concerned architects and plot holders, the town planning wing of the MCG will be meeting them to resolve hindrances in getting the building plan approved or receiving their occupation certificates. Similarly, the residents will also meet the officials to get the plans approved for their unplanned land pockets for change of land use (CLU), town planning (TP) and other related schemes.

Transaction-wise, Gurgaon witnessed some movement. Consumers seemed excited about investing in property. Maybe infra progress contributed in changing their sentiments.

Magicbricks Bureau

EDITORIAL

The City Index remained stagnant at the same level as in the last quarter. The Jul-Sep 2016 quarter had more localities with price decline

At least 47% localities saw an average increase of 1.6% while balance 53% localities saw prices drop by 2.6%

Price movement across most budget segments has been negative with maximum decline being in the luxury segment of Rs 14,000- 18,000 per sq ft

Only the Rs 7,000-8,000 per sq ft budget segment in the city saw price remaining at the same level as in the last quarter. Average price decline in other budget segments was under 1%

East and West zones of the city, which account for most of supply and consumer demand, witnessed marginal price decline. High consumer preference in these zones saw either negligible price increase or decline.

Budget wise the highest decline of 5% in prices was in the Rs 14,000-18,000 per sq ft segment. The Rs 7,000-8,000 per sq ft was the only segment which saw some positive movement

Analysis across 73 localities of the city shows that on an average, Ready-to-Move-in (RM) properties were 10% more expensive than Under Construction (UC) properties in the Jul-Sep 2016 quarter

The average difference in prices has declined marginally as compared to the Apr-Jun 2016 quarter. While the weighted average price of RM properties was Rs 8,209 per sq ft, the same for UC properties was Rs 7,545 per sq ft

The average price of both RM and UC properties declined over the quarter by 0.5% and 0.7%, respectively

In terms of price increase, UC properties posted a decline of 4% over the Sep 2013 to Sep 2016 period, while the price of RM properties increased by 3% during the same period. The price movement in case of both RM and UC properties worsened due to decline over the last quarter

VOL6, ISSUE 2; JUL-SEP, FY 2016-17 propindex.magicbricks.com GURGAON11

Properties distribution by capital value (Rs/sq ft)Apr-Jun 2016 to Jul-Sep 2016

This graphs shows the distribution of actively traded properties by their capital value. This distribution shows the expensive nature of real estate in the Gurgaon market

The entry level budget segments are equivalent to the mid-level budget segments in most other cities. Supply here is evenly distributed across its entry and mid budget segments. Further it was noted that the dominant budget segment by supply was not the lowest segment of the city

The largest budget segment with 26% share was the Rs 7,000–8,000 per sq ft. The two lowest budget segments within Rs 4,000–6,000 per sq ft account for 28% share of supply in Gurgaon

Unlike other cities, the overall price movement in the city is determined equally by its mid-budget segments as well as by the lower budget segments

The map shows the geographical spread of localities considered for calculating the City Price Index. The localities have been grouped together to understand the zone wise price trend in the city

Development in Gurgaon can be divided into two broad halves which are on either side of NH-8. Central, South and East zones consist of established residential areas, where development activity is still under progress. These projects are likely to be delivered over the next couple of years

The Western zone, which is east of NH-8, consists primarily of sectors with under construction projects. Few projects have been delivered. The main driver for this zone is the Dwarka Expressway/Northern Peripheral Road which will provide connectivity to Delhi

The North zone consists of a few residential areas on the Gurgaon-Delhi border and along the Northern end of Dwarka Expressway

Geographical distribution of localitiesWestern zone accounts for most of the new development activity


The City Index for Gurgaon reflects the price movement across 73 prominent localities. These localities have been chosen using the twin criterion of share in overall consumer preference in Gurgaon as well as share of actively

traded properties. The weight assigned to each locality is its share of consumer preference. This makes for a comprehensive Index covering localities with high consumer preference and high number of actively traded properties

The City Index remained at the same level as in the last quarter. The Jul-Sep 2016 quarter had more localities with price decline. At least 47% localities saw an average increase of 1.6%, pushing up the Apr-Jun 2016 Index by 1%. The balance 53% localities saw prices drop by 2.6%, pushing down the Apr-Jun 2016 Index by 1% leading to City Index remaining at the Apr-Jun 2016 level

The geographical spread of budget segments show that the Western zone with large scale development activity has properties primarily in the Rs 4,000-6,000 per sq ft price bracket with the Rs 4,000-5,000 per sq ft being the dominant sub-segment

The East zone comprises primarily of established residential areas in the mid to premium segments. Even fresh development in this zone is in the higher budget segments. This includes prominent localities like Golf Course Road and Golf Course Extension Road and various DLF phases. The premium Rs 10,000- 14,000 per sq ft price range falls within this zone

The South zone has a mix of established and under-construction residential localities. It covers the price range from Rs 4,000-10,000 per sq ft

Together, the South and East zones presently account for 72% share of consumer preference

[CITY INDEX]Jul-Sep 2013 to Jul-Sep 2016



To understand the contribution of various budget segments and localities in the Index movement, we have grouped 73 localities into budget segments on the basis of their capital values. A further micro picture of price movement is presented by looking at price change across different geographies and their constituent budget segments

Price movement across most budget segments was negative with maximum decline being in the luxury segment of Rs 14,000-18,000 per sq ft. Only the Rs 7,000-8,000 per sq ft budget saw prices at the same level as in the last quarter. Average decline was under 1%

The price trend in a given budget segment varied depending on the zone

Price movement across zones:

East On an average, price in the Eastern zone

of the city declined marginally. Except for the Rs 7,000-8,000 per sq ft and Rs 9,000-10,000 per sq ft segments, which saw marginal price increment, all other budgets saw a price decline

The highest decline of 5% was in the Rs 14,000-18,000 per sq ft segment, centred at Sector 42

Price movement in other prominent and high demand localities in the zone like Golf Course Road, Golf Course Road Extension and Sushant Lok-1 remained marginally positive

North Prices in localities in this zone either

declined or remained stable

Price level in Palam Vihar, which is the most important locality, declined by 2.2% over the previous quarter

West West zone is being marketed as ‘New

Gurgaon’. This was the only zone with some average increment in the prices



Most of the sectors saw a marginal decline in prices wherein maximum decline was in the Rs 4,000-5,000 per sq ft price bracket. Major areas like Sectors 37C, 81 and 92 saw a price decline

South The Southern zone saw negligible price

decline. This was because a mix of high consumer preference localities had price increase as well as decline. Net effect was marginal price gain the zone

Price increment in the Rs 7,000-8,000 per sq ft segment was due to 4.3% rise in high demand localities like Sohna Road

Most of the localities in the lower bracket of Rs 4,000-6,000 per sq ft saw decline

Centre The price level in the localities of this

zone was either stagnant or declined as compared to the last quarter. The average decline was under 1%

Price level in most high consumer preference localities in the zone saw a marginal price decline





The graph shows the trend in prices of ‘Ready-to-Move-in’ (RM) properties and Under Construction (UC) properties. Analysis across 73 localities shows that on an average, RM properties were 10% more expensive than UC properties in the Jul-Sep 2016 quarter

The average difference in prices has declined marginally as compared to the Jul-Sep 2016 quarter. While the

weighted average price of RM properties in the quarter was Rs 8,209 per sq ft, the same for UC properties was Rs 7,545 per sq ft

The average price of both RM and UC properties declined over the last quarter by 0.5% and 0.7%, respectively

In terms of price increase, UC properties posted a price decline of 4% over the Sep 2013 to Sep 2016 period, while

the price of RM properties increased by 3% during the same period. The price movement in case of both RM and UC properties worsened due to decline over the previous quarter

The below graph shows price trend in the top 10 localities by consumer preference. It was noted that more localities witnessed increase in price of RM properties as compared to UC properties

NOIDA propindex.magicbricks.com VOL6, ISSUE 2; JUL-SEP, FY 2016-1716

[PROPINDEX - NOIDA][Key Takeaways]

Indirect benefits hover over Noida real estate

Not many significant positive streaks this quarter, Noida still has some good aspects to recall. For starters, builders with cash

flow issues may have to return unused leased land to pay dues to authorities. The money collected in return will be used for project completion. This proactive step will supposedly dissolve the roadblock between buyers and builders in Noida.

Another good aspect was government’s decision to not increase FAR in under construction projects and forthcoming projects in Noida. This means NOC and Completion Certificate will only be issued to builders, subject to completion of common facilities, payment of dues and those who complete the infrastructure work of under construction towers or projects.

Noida sees a slight rise of 5 per cent in office rental. This rise has been registered against the backdrop of high vacancy rate (almost 32% in the Apr-Jun 2016quarter) in Delhi-NCR.

To resolve nuisances such as unauthorised parking charges, the state government has declared that they be allowed inside the school/hospital building complex instead of encroaching the road outside. Other grievances which are awaiting solutions are free parking in malls and hospitals, encroachments, depletion of greenery, etc.

In a bid to better plan the city, Noida Authority is thinking of creating a 3D model of the city. For starters, the 3D map of the city’s commercial complex, Sector 18, has been created on a trial basis which is under screening by officials.

Government bodies are liable to receive over Rs 7,000 crore in land payments from builders. Yamuna Expressway Industrial Development Authority areas is steep too — Rs 2,100 crore. Noida Authority had initiated an amnesty scheme in which any allottee who had an outstanding amount of more than Rs 500 crore had to pay 10 per cent and less than Rs 500 crore had to pay 15 per cent of the amount to avail the amnesty scheme. However, all allottees will need to pay interest on the balance amount, which was to be collected in instalments.

Developers have hope that the festive season will result in improved transactions. The last quarter of this year will be closely watched by real estate experts.

Magicbricks Bureau

EDITORIAL

The City Index saw a 1.17% decline over the previous quarter. The Jul-Sep 2016 quarter had less localities with price rise than price decline

Of the localities 54%, witnessed a price decrement of 2.7%, pushing the Apr-Jun 2016 Index value down by 1.7%. The balance 46% localities saw average price increase of 1.9%, pushed up the Index by 0.5%

Price movement across most budget segments has been mostly negative with five out of six segments losing price. The Rs 4,000-5,000 per sq ft was the only segment to see a price increase, albeit a paltry 0.1%

The maximum price decline of more than 1% was witnessed in the Rs 7,000-11,000 per sq ft and

Rs 3,000-4,000 per sq ft segments. The premium Rs 7,000-11,000 per sq ft segment has been losing price for the last two quarters

In geographical terms, the Eastern zone accounts for 16% of the city’s supply and the prices here moved up by 0.4% this quarter

The Western zone, consisting of prime residential localities with an average price of over Rs 7,000 per sq ft, witnessed prices falling by 0.8%

Northern Noida, which accounts for more than 50% of consumer preference and 57% of supply in the secondary market, saw prices remaining stagnant over the quarter

Analysis across 35 localities in Noida showed that on an average, Ready

to-Move-in (RM) properties were 12.3% more expensive than Under Construction (UC) properties in the Jul-Sep 2016 period, which is slightly higher than normal. This shows that consumers continue to be vary of development risk associated with UC projects and preferred RM properties

Weighted average price of RM properties was Rs 5,286 per sq ft, while it was Rs 4,707 per sq ft for UC properties

Key locality in terms of price rise was Sector 76, where both UC and RM prices increased significantly. Key localities in terms of price decline were Sectors 73 and 74, where both UC and RM prices fell significantly

VOL6, ISSUE 2; JUL-SEP, FY 2016-17 propindex.magicbricks.com NOIDA17

Property distribution by capital value (Rs/sq ft)Apr-Jun 2016 to Jul-Sep 2016

The adjacent graphs shows the distribution of actively traded properties by their capital values. When compared with other prominent constituents of the National Capital Region (NCR), Noida is the ‘affordable’ destination of the region. It is also the biggest residential real estate market of NCR

With almost 74% of the secondary market inventory in the Rs 4,000– 6,000 per sq ft range, the supply is concentrated in a very narrow price segment here

A typical 1200 sq ft home in Noida will cost between Rs 50 - 75 lakh. This price segment also comprises more than 80% share of consumer preference in the city

The higher budget segments have smaller share of the secondary market. These premium localities are situated adjacent to the central business district

The map shows the geographical spread of localities considered for calculating the City Price Index. The localities have been grouped together to understand the zone wise price trend in the city

In this quarter, new developments in Noida have taken place primarily in two directions - one along the Noida-Greater Noida Expressway towards South-East and another in the Easterly direction along and off the Noida-Greater Noida link road

The North zone in the map corresponds to new development in the easterly direction of the city. While areas in the Center, South and East zones correspond to sectors along and off the Noida Expressway, the center of the map is not the same as the Central Business District/core areas of the city

Localities in the West, towards the top of the map, are the core areas of the city which are the prime areas of Noida

Geographical distribution of localitiesNorth zone accounts for bulk of supply in the secondary market


The City Index for Noida reflects price movement across 35 prominent localities. These have been chosen using the twin criterion of share in the overall consumer preference as well as share of actively traded properties. The weight

assigned to each locality is its share of preference in the city. This makes for a comprehensive Index which covers localities with high consumer preference as well as high number of actively traded properties in the secondary market

The City Index saw a 1.17% decline over the previous quarter. The Jul-Sep 2016 quarter had less localities with price rise than price decline. Of the localities 54%, witnessed a price decrement of 2.7%, pushing the Apr-Jun 2016 Index value down by around 1.7%. The balance 46% localities, which witnessed average price increase of 1.9%, pushed up the Index by 0.5%

Given the development pattern of Noida, sectors or localities situated towards the South, along and off the Noida-Greater Noida Expressway, or towards East along the access road to Greater Noida West, account for most of the supply

The supply in the entry level budget of Rs 3,000-4,000 per sq ft segment is concentrated primarily in the North zone located along and off the Noida-Greater Noida link road towards the East of the city center. A few sectors in the South zone, located towards the end of the Noida Expressway, also have options in this budget segment

The dominant Rs 4,000-6,000 per sq ft price range is again concentrated in the North zone, being equally distributed between the Rs 4,000-5,000 per sq ft and the Rs 5,000-6,000 per sq ft budget segments

The higher priced budget segment of Rs 6,000-11,000 per sq ft is concentrated in the West and Central zones of the city

CITY INDEXJul-Sep 2013 to Jul-Sep 2016



To understand the contribution of various budget segments and localities in the Index movement, we have grouped 35 localities under the Index into budget segments on the basis of their capital values. A further micro picture of price movement is presented by looking at price changes across geographies and their constituent budget segments

Price movement across most budget segments has been mostly negative with five out of six segments losing price. The Rs 4,000-5,000 per sq ft was the only budget segment witnessing a price increase this quarter, albeit a paltry 0.1%. The maximum price decline was witnessed in the Rs 7,000-11,000 and Rs 3,000-4,000 per sq ft segments, falling by more than 1%. The premium Rs 7,000-11,000 per sq ft segment has been losing price for the last two quarters

The price trend in a given budget segment witnessed some variations across different zones in the city

The price movement across zones:

East The region majorly consists of houses in

the Rs 5,000-6,000 per sq ft category, with the Rs 4,000-5,000 per sq ft category forming the rest

This region accounted for 16% of the city’s supply and the prices here moved up by 0.4% this quarter

North North zone is important as it accounts for

over 50% share of preference and 57% of supply in the secondary market

Along with East, this was the only region witnessing a price increase, moving up by 0.2% on an average.

The region is dominated by the Rs 4,000-6,000 per sq ft, forming the biggest source of such properties in the city. The region is also the only source of properties cheaper than Rs 3,000 per sqft



West The price trend in the West zone was

positive for two out of three budget segments present here

Overall, the region accounted for 9% of the city’s residential supply and witnessed a fall of 0.8% in its prices

South The Southern region majorly consists of

supply in the affordable segments of Rs 3,000-4,000 per sq ft and Rs 4,000-5,000 per sq ft, with localities on the Noida-Greater Noida Expressway, such as Sectors 151 and 168 as key localities. The average price fell by a significant 4.9%

Centre Properties in the Central region are

within Rs 4,000-11,000 per sq ft and above. Along with Western Noida, this is the only region with properties above Rs 7,000 per sq ft are available. This formed 12% of the city’s supply and saw a fall of 1.6% in its prices on an average





The graph shows the trend in the prices of ‘Ready-to-Move-in’ properties (RM) and Under-Construction (UC) properties. Analysis across 35 localities shows that on an average, RM properties were 12.3% more expensive than UC properties in the Jul-Sep 2016 quarter

The average difference in prices of UC and RM properties has remained stagnant over the last three quarters. While the weighted average price of

RM properties was Rs 5,286 per sq ft the same for UC properties in the quarter was Rs 4,707 per sq ft

The average price of RM properties fell by 1.2%, while that of UC properties fell by 0.8% in the last quarter

In terms of price change, Under Construction properties posted a price decrement of 3% over the Sep 2013 to Sep 2016 period, while the price of RM

properties witnessed a decrement of 14% during the same period

The graph below shows the price trend in the top 10 localities of Noida by consumer preference. Key locality in terms of price increase was Sector 76, where both UC and RM property prices increased significantly. Key localities in terms of price decline were Sectors 73 and 74, where both UC and RM property prices fell considerably

GREATER NOIDA propindex.magicbricks.com VOL6, ISSUE 2; JUL-SEP, FY 2016-1722

[PROPINDEX - GREATER NOIDA][Key Takeaways]

Greater Noida shows some positivity

Progressive events mark the quarter for Greater Noida. The Greater Noida Industrial Development Authority (GNIDA)

has donned a fast-track approach to provide completion certificates to 21 Group Housing Societies in an attempt to address home buyers’ problem of delayed deliveries. The GNIDA intends to hand over Occupancy Certificates to nearly 4,000 residential units before Diwali.

The much talked about Jewar airport might soon be a reality. At present, the state government has to submit location maps of the airport to attain site approval. There are various stages of clearances involved after which is the creation of the Detailed Project Report. The airport does not need to amend the ‘150-km rule’, i.e. not be built in the vicinity of an existing one till the latter’s capacity falls short

of meeting the requirements of its catchment area. Infrastructure plays a key role in gathering consumer demand and once the airport becomes operational, it has immense potential to impact the real estate scene.

Greater Noida will benefit significantly from the Rs 600-crore Integrated Industrial Township under the Delhi-Mumbai Industrial Corridor (DMIC). Development is on track with IIT-Delhi’s approval of its infrastructure design. As of now, only about 12 per cent of the project has been completed. Work under progress includes design of the bridge, solid waste management, earth filling etc. The township will be located in the Dadri-Noida-Ghaziabad corridor. Job opportunities have always been a pull-factor for consumers. With the establishment of the township, developers will be offering cheap

residential housing to boost the residential real estate in the area.

Besides the mentioned events, GNIDA was also active this quarter. The body has decided to cancel allotment of 7 residential projects (about 7,000 units) as builders have not applied for the re-scheduled payment plan. These builders have an outstanding of around Rs 80 crore due to GNIDA. Most of these projects are located in the Greater Noida (West) area.

In terms of actual transactions, Greater Noida still seems a little tepid. The developer community is hoping the festive season, with deals and discounts, will boost consumer sentiments. Despite the positive turn of events – infrastructure-wise and delayed deliveries, consumers are cautious in their approach.

Magicbricks Bureau

EDITORIAL

The City Index saw a 2% decline as compared to the last quarter. The Jul-Sep 2016 quarter had more localities with price drop than gain

In the Jul-Sep 2016 quarter, 41% localities witnessed an average price increase of 0.8% while the balance 59% localities witnessed prices declining by 2.4%

Most budget segments saw a decline in price levels. The highest decline was in the high demand budget segments of Rs 3,000-3,250 per sq ft and Rs 5,000 per sq ft and above. Prices in these segments declined by 2.4% and under 1%, respectively

Overall the price movement was from a low of -2.4% to high of 0.6%

In geographical terms, price in the Western zone of Greater Noida centred on Noida Extension, which accounts for most of the supply in the secondary market and consumer preference. These remained stagnant at the same level as it was in the previous quarter

The South zone of the city centred on Pari Chowk, with the highest share (44%) of consumer preference, witnessing a marginal 0.4% increment in price level

The East zone of the city also had negligible decline in the price levels in this quarter

Analysis across 18 localities of Greater Noida showed that on

an average, the Ready-to-Move-in (RM) properties were 23% more expensive than the Under Construction (UC) properties in the Jul-Sep 2016 quarter

The average difference in prices has increased by 400 basis points as compared to the Apr-Jun 2016 quarter. While the weighted average price of Ready-to-Move-in properties was Rs 3,868 per sq ft, the same for Under Construction properties was Rs 3,144 per sq ft in the current quarter

The average price of UC properties has declined by 2.4% while that of RM properties increased by 1.1% in the Jul-Sep 2016 quarter

VOL6, ISSUE 2; JUL-SEP, FY 2016-17 propindex.magicbricks.com GREATER NOIDA23


The graph shows the distribution of actively traded properties by their capital values in the Jul-Sep 2016 quarter

The graph shows that 79% secondary market supply in the city is in a narrow budget range of Rs 3,000-3,500 per sq ft. Of these, 75% is concentrated in a still narrower range of Rs 3,000-3,250 per sq ft. A very small percentage is available in the higher budget segments

It is this low budget range which positions Greater Noida as a relatively less expensive extension of Noida. This allows for very large scale residential development activity to attract demand in the lower budget segments

Most of the development is located in the northern stretch of Greater Noida which lies east of Noida. This consists of Noida Extension under the Western zone as well as localities in the North zone. Together these zones have 40% share of consumer

The map shows the geographical spread of localities considered for calculating the City Price Index. These localities have been grouped together to understand the zone wise price trend in the city

Development activity in Greater Noida is concentrated in two zones - West and South. Within the West zone, Noida Extension or Greater Noida West, is the hub of development. This single locality accounts for 35% and 48% share of consumer preference and secondary market supply, respectively. Given its connectivity and accessibility from Noida, it has been positioned as Noida Extension

The South zone of Greater Noida has more than 40% share of consumer preference and consists of prime residential areas such as Pari Chowk. Sectors along and off the Yamuna Expressway also fall in this zone and these have recorded more than 50% share of consumer preference in the quarter

Geographical distribution of localitiesLop sided development concentrated in one zone


The City Index for Greater Noida reflects the price movement across 18 prominent localities. These localities have been chosen using the twin criterion of share in overall consumer preference in Greater Noida and share of actively

traded properties. The weight assigned to each locality is its share of consumer preference. This makes for a broad Index which covers localities with high consumer preference and high number of actively traded properties

The City Index saw a 2% decline as compared to the last quarter. The Jul-Sep 2016 quarter had more localities with price drop than price gain. At least 41% localities saw an average rise of 0.8%, pushing up the Apr-Jun 2016 Index. The balance 59% localities saw a drop of 2.4%, pushing down the Apr-Jun 2016 Index by 1.8% leading to drop of 2%

preference and 64% share of secondary market supply

While the North zone has supply in the below Rs 3,000 per sq ft and the Rs 3,000-3,250 per sq ft bracket, the West zone has supply predominantly in the Rs 3,000-3,250 and Rs 3,250-3,500 per sq ft segments

The South zone has supply across the Rs 3,250-5,000 per sq ft and above range. The more expensive supply in the Rs 4,000–5,000 per sq ft range is available in and around areas like Pari Chowk, the core area of the city as well as an established prime residential locality

The less expensive supply in this segment is found along the Yamuna Expressway further south of these localities, which is attracting buyers to invest here

Prices in the East zone varies on its proximity to the city center such as Pari Chowk. Development needs to happen in order to boost investment in the locality




To understand the contribution of various budget segments and localities in the Index movement, we have grouped 18 localities under the Index into budget segments on the basis of their capital values. A further micro picture of price movement is presented by looking at price changes across geographies and their constituent budget segments

Most segments saw a decline in price level. The highest decline was in the high demand budget segments like Rs 3,000-3,250 per sq ft and Rs 5,000 per sq ft and above. Prices in these segments declined by 2.4% and under 1%, respectively

Overall price movement was from a low of -2.4% to high of 0.6%.


East Price trend in the East zone was mixed

as compared to other zones. It was was -3.6% to 0.4% across budget segments

Price drop was seen in one budget segment (Rs 3,000-3,250 per sq ft) while the other two budget segments (less than Rs 3,000 per sq ft and Rs 3,750-4,000 per sq ft) saw negligible gain

High consumer preference locality like Omnicron-1 saw a price decline of 3.6% while others saw marginal appreciation

North This zone has properties in the lower

segments of less than Rs 3,000 per sq ft and Rs 3,250-3,500 per sq ft brackets

Price trend in both these segments was negative with price drop of 3.3% and 2.7%, respectively. This decline in price was due to high consumer preference locality like Noida Extension/Greater Noida West witnessing a price drop of 3%

West West zone has most of the city’s supply in

the Rs 3,250-3,500 per sq ft price bracket pushing home buyers’ interest



Price trend in this segment defines the overall trend. Hence, these prices were in-line with the market average

The Rs 3,250-3,500 per sq ft segment saw a decline of 2.1% which was higher than market average decline of 0.7%

South Price trend here was mixed as two out

of five segments saw price decline, two witnessed marginal increment and one stayed at the same level

High demand localities like Yamuna Expressway witnessed price drop of 3% while Pari Chowk was at the same level

Yamuna Expressway prices are in the range of Rs 3,000-3,250 per sq ft and Pari Chowk represents the premium locality. Prices in Pari Chowk fall in the segment of over Rs 5,000 per sq ft

Central In the Central zone, the price trend was

subdued and price levels remained at the same level as in the last quarter

Price change-Top localities by consumer preferenceApr-Jun 2016 to Jul-Sep 2016



Price change basis construction status Top localities by consumer preference in the Jul-Sep 2016 period

The graph shows the trend in prices of ‘Ready-to-Move-in’ properties (RM) and Under Construction (UC) properties. Analysis across 18 localities in Greater Noida shows that on an average, RM properties were 23% more expensive than the UC properties in this quarter

The average difference in prices has increased by 400 basis points as compared to the Apr-Jun 2016 quarter.

While the weighted average price of RM properties was Rs 3,868 per sq ft, the same for UC properties was Rs 3,144 per sq ft in this quarter

The average price of UC properties has declined by 2.4% while that of RM properties increased by 1.1%

In terms of price movement, the Under Construction properties posted a price decline of 5% over the Sep 2013 to

Sep 2016 period, while the price of RM properties saw a marginal gain of 1% during the same period. Price movement in case of UC properties became worst due to decline over the last quarter

The graph below shows price trend in the top 10 localities of Greater Noida by consumer preference. It shows that prices of UC properties declined in most of the high consumer preference localities

GHAZIABAD propindex.magicbricks.com VOL6, ISSUE 2; JUL-SEP, FY 2016-1728

[PROPINDEX - GHAZIABAD][Key Takeaways]

Ghaziabad realty remains sluggish

The exciting news in Ghaziabad real estate sector probably is its direct connectivity with Noida via the Metro link. Mohan

Nagar would be the terminus. Ghaziabad Development Authority (GDA) has agreed to the extension of Delhi Metro blue line till Mohan Nagar, which at present ends at Vaishali, and the extension of Noida City Centre-Sector 62 Metro corridor, which is under construction, to the proposed Vaishali-Mohan Nagar line via Indirapuram. A total sum worth Rs 1.09 crore has been sanctioned to Delhi Metro Rail Corporation for the construction of these two proposed corridors.

The Metro has the ability to boost consumer sentiments towards making an investment in Ghaziabad. At present, market transactions are on the lower side.

Home buyers who have invested here got some respite with the government ruling - Under Section 12 (1) (c) of the Consumer Protection Act, irrespective of whether they have filed the case or not. All buyers will be eligible for the benefits, according to a National Consumer Disputes Redressal Commission (NCDRC) judgement.

This means, all buyers of a housing project will automatically be party to a case filed against the builder. Buyers were hopeful when NCDRC asked a well-known developer to refund the entire amount paid by around 70 home buyers in its project in Ghaziabad with 12 per cent interest for failing to complete the construction of apartments on time. In future, this will prompt developers to complete projects within scheduled deadlines.

Building by-laws formulated exclusively for Ghaziabad in 2014 will continue to remain under implementation in the city despite the latest guidelines issued by the state government. According to Ghaziabad’s building by-laws, stilt parking plus four floors are allowed on plot sizes of 112 square metres. The new by-laws mandate a minimum plot size area of 150 sq m for construction of buildings with stilt parking and four floors. Both buyers and developers heaved a sigh of relief as new laws means new planning on the developer’s front which might lead to delayed timelines.

The city’s consecutive failure in featuring on the Smart City list highlights the shortcomings. The amendment of these limitations need to be rectified by GMC not just for the Smart City project but also for the betterment of the city.

Magicbricks Bureau

EDITORIAL

The City Index saw a 1% increment over the previous quarter. The Jul-Sep 2016 quarter had more localities with price decline but their cumulative impact was less than localities with price increase

At least 61% localities saw an average decline of 1.9% while balance 39% saw an average rise of 2.3%. As in the last quarter this quarter has also been dismal

Of the five major budget segments, price level in three saw a decline. Other two saw a marginal price rise

Overall, the price movement ranged from -1% to 0.7%. The lower three segments saw price decline while the higher two saw a price increase

The dominant supply segment of over Rs 3,000 per sq ft saw a 0.1% drop while the dominant consumer preference budget of Rs 5,000-6,000 per sq ft saw a 0.7% rise

The Western zone, consisting of all premium localities bordering Delhi, witnessed stable prices. It also accounts for over 70% of consumer preference and 71% of supply in the secondary market

The South zone, centred on Crossings Republik, saw a price decline of 2%

The North zone, with low-cost housing options centred on Raj Nagar Extension, witnessed a significant price decline of 2.7% in the city during the quarter

The Central zone consists of properties in the Rs 3,000-4,000 per sq ft and Rs 4,000-5,000 per sq ft segments. These segments witnessed price rise as against overall decline. The Eastern region, with options in the lowest segment saw a 3.6% decline in price level

Analysis across 46 localities in Ghaziabad shows that on an average, RM properties were more expensive than UC properties

The difference has decreased by over 300 basis points, from 3.5% to 0.2% premium for RM properties

The average price of RM properties was Rs 4,351 per sq ft, the same for UC properties was Rs 4,341 per sq ft

VOL6, ISSUE 2; JUL-SEP, FY 2016-17 propindex.magicbricks.com GHAZIABAD29


The graph shows the distribution of actively traded properties by their capital values and properties in the market are concentrated in a narrow range

With 48% properties in less than Rs 4,000 per sq ft segment, Ghaziabad, along with Greater Noida, forms the most affordable real estate destinations for consumers looking to buy residence in the National Capital Region (NCR). The higher budget segment of Rs 5,000- 7,000 per sq ft bracket forms a smaller (25%) share of the secondary market

Geographical spread of budget segments show that most of the supply and consumer preference is concentrated in the West zone. This zone has more than 70% share of supply in the secondary market. Localities in the Western zone such as Indirapuram, Vaishali, Kaushambi and Vasundhara are all high consumer preference localities. They provide good connectivity and are easily accessible

The map shows the geographical spread of localities considered for calculating the City Price index. These have been grouped together to find the zone wise price trends in the city

Localities in Ghaziabad drive demand basis their contiguity and connectivity with Delhi

Localities in the West zone have best connectivity to Delhi and are the preferred addresses. The price gradient decreases as one moves from West to East

Preferred localities in the West zone include Indirapuram, Vaishali, Kaushambi and Vasundhara which are contiguous with each other and some also share a border with Delhi

Those looking for less expensive options can choose from Raj Nagar Extension in the North zone and Crossings Republik in the South zone. While new development in Crossings Republik is more or less complete, Raj Nagar Extension is witnessing considerable new development

Geographical distribution of localitiesWestern localities preferred for connectivity with Delhi


The City Index for Ghaziabad reflects the price movement across 46 prominent localities. These localities have been chosen using the twin criterion of share in overall consumer preference in Ghaziabad as well as share of actively traded properties. The weight assigned

to each locality is its share of consumer preference in the city. This makes for a comprehensive Index which covers localities with high consumer preference as well as high number of actively traded properties in the secondary market

The City Index saw a 1% increment over the previous quarter. The Jul-Sep 2016 quarter had more localities with price decline but their cumulative impact was less than localities with price increase. At least 61% localities saw an average price decline of 1.9% while balance 39% localities saw average price increment of 2.3%. This led to 1% net increment in the City Index for Jul-Sep 2016 quarter

from Delhi. Consumers can commute to Delhi for work or business related activities and this makes these localities the preferred destinations

Price range in the West zone localities varies from Rs 3,000-7,000 per sq ft. Though the dominant segment (45% share) is the Rs 4,000-5,000 per sq ft, this is followed by the Rs 5,000-6,000 per sq ft budget range

Crossings Republik in the South zone is an important high consumer preference locality which caters to demand in the Rs 3,000-4,000 per sq ft price segment. The whole locality consists of new projects which have been completed in the recent past

Raj Nagar Extension in the North zone is another upcoming destination which serves consumer preference in the below Rs 3,000 per sq ft price segment in the area




To understand the contribution of various budget segments and localities in the Index movement, we have grouped 46 localities into segments on the basis of their capital values. A further micro picture is presented by looking at price change across different geographies

The last quarter was mixed for the realty sector. Of the five major budget segments, prices in three witnessed a drop. The other two saw a marginal rise

Overall price movement was marginal and ranged from -1% to 0.7%. The lower three segments saw a price drop while the higher two saw a price increase

The dominant supply of less than Rs 3,000 per sq ft witnessed a 0.1% decline while the dominant consumer preference segment (Rs 5,000-6,000 per sq ft) saw a 0.7% price increment


East This zone has properties in the entry

level (below Rs 3,000 per sq ft) segment

In-line with the overall price trend, it witnessed a price decline. However, the decline of 3.5% was higher than the market average for this budget segment

North Raj Nagar Extension is an important high

consumer preference locality in this zone

This caters to consumer preference for cheaper options in the below Rs 3,000 per sq ft and Rs 3,000-4,000 per sq ft prices brackets

The zone witnessed 2.7% decline, more than the average decline in this segment

West This zone holds most of the city’s supply

in the Rs 4,000-6,000 per sq ft price bracket. Price trend in this zone decides the overall city price movement average, geographic and budget wise



The average change in the Rs 4,000-5,000 per sq ft and Rs 5,000- 6,000 per sq ft segments was decided by changes (-0.3% and -1.2%) in these budgets

The Rs 3,000-4,000 per sq ft range also saw a decline in line with the average

South Localities here form the second most

preferred areas, with bulk of the supply in the below Rs 3,000 per sq ft and Rs 3,000-4,000 per sq ft price ranges

Crossings Republik with its new construction is the preferred locality

This zone forms 14% of the city’s supply, witnessing a 2% decrement in the city

Central This zone consists of properties in the

Rs 3,000-4,000 and Rs 4,000-5,000 per sq ft segments

These segments witnessed price increment as against overall price decline

Price change-Top localities by consumer preferenceApr-Jun 2016 to Jul-Sep 2016



Price change basis construction statusTop localities by consumer preference in Jul-Sep 2016 period

The graph shows the trend in the prices of ‘Ready-to-Move-in’ (RM) properties and Under Construction (UC) properties. Analysis across 46 localities in Ghaziabad shows that on an average, RM properties were slightly more expensive than UC properties in the Jul-Sep 2016 period

The average difference in prices has decreased by more than 300 basis point this quarter and has gone from 3.5% premium to 0.2% premium for RM

properties. While the weighted average price of RM properties was Rs 4,351 per sq ft, the same for UC properties was Rs 4,341 per sq.ft

The average price of RM and UC properties has increased by 3.7% and 0.4%, respectively over the last quarter in the city

In terms of price increase, UC properties posted a price decline of 5% over the

Sep 2013 to Sep 2016 period, while the price of RM properties declined by 7% in the same period. The price movement in case of RM and UC properties, has improved due to price increment in the last quarter

The graph below shows price trends in the top 10 localities in Ghaziabad by consumer preference. It shows that more localities have seen price decline in case of RM properties


Capital values

Alaknanda 10554-15314 19000-29000 2.00%Chhattarpur 3295-5331 12000-20000 4.5%Chittaranjan Park 11247-18233 20000-33000 2.2%Defence Colony 22767-36498 35000-63000 2.00%Dwarka Sector 6 6887-9826 11000-16000 2.00%Dwarka Sector 7 6940-9761 11000-16000 2.00%Dwarka Sector 10 6913-9578 11000-16000 2.00%Dwarka Sector 11 7189-10397 11000-16000 2.00%Dwarka Sector 12 6900-9752 11000-17000 2.00%Dwarka Sector 19 6799-9674 10000-16000 1.9%Dwarka Sector 22 7192-10236 12000-17000 2.00%Dwarka Sector 23 6839-9576 11000-17000 2.1%East of Kailash 13275-22280 22000-37000 2.1%Govindpuri Main 3497-5649 12000-19000 4.1%Greater Kailash 1 14504-24272 24000-41000 2.1%Greater Kailash 2 14680-24928 23000-40000 2.00%Green Park 15691-26610 22000-39000 1.9%Hari Nagar 5656-9283 13000-20000 2.7%Hauz Khas 17407-30173 26000-45000 1.8%Indraprastha Extension 8817-14053 16000-23000 2.00%Janakpuri 7774-13702 13000-21000 1.9%Kalkaji 9813-15859 18000-31000 2.3%Kirti Nagar 7482-12281 16000-23000 2.3%Lajpat Nagar 10802-18645 22000-36000 2.3%Laxmi Nagar 4655-7390 15000-23000 3.7%Malviya Nagar 9505-16840 20000-33000 2.6%Mayur Vihar 8058-13537 17000-27000 2.4%Mayur Vihar 1 9306-15256 18000-29000 2.3%Model Town 8331-14403 18000-29000 2.4%New Friends Colony 15255-26418 22000-38000 1.7%Okhla 3507-5744 17000-32000 5.7%Pandav Nagar 4964-7385 15000-23000 3.7%Paschim Vihar 8642-13300 13000-21000 1.8%Patel Nagar 7241-11966 19000-30000 3.2%Patel Nagar West 8281-12035 19000-28000 3.1%Patparganj 8852-14041 16000-23000 2.00%Pitampura 7627-14270 15000-24000 2.1%Preet Vihar 10394-15903 14000-23000 1.9%Rajouri Garden 7372-12577 14000-23000 2.2%Ramesh Nagar 6810-10806 16000-25000 3.00%Rohini Sector 9 9914-15682 17000-25000 1.9%Safdarjung Enclave 15821-25114 22000-38000 1.8%Saket 13762-21724 21000-36000 1.7%Sarita Vihar 8038-11873 14000-21000 2.2%Tilak Nagar 4350-6924 14000-21000 3.5%Uttam Nagar 3321-5306 11000-16000 3.9%Uttam Nagar West 3267-5120 12000-18000 3.9%Vasant Kunj 10575-16100 20000-30000 2.3%Vasant Vihar 18320-34088 33000-63000 1.9%Vasundhara Enclave 7839-11235 15000-23000 2.3%Vikaspuri 7707-11850 12000-21000 2.00%

LOCALITY CAPITAL RENTAL YIELD


Capital values

Ardee City 5479-8387 12000-20000 2.8%DLF City Phase 1 7723-12517 13000-24000 2.2%DLF City Phase 2 7099-11762 14000-23000 2.4%DLF City Phase 3 6925-12093 15000-25000 3.1%DLF City Phase 4 10205-12610 20000-30000 2.6%DLF City Phase 5 10917-13874 19000-30000 2.5%Golf Course Extension Road 6832-9607 13000-20000 2.4%Golf Course Road 9606-14893 18000-30000 2.3%Gurgaon - Faridabad Road 6159-8262 11000-21000 2.4%MG Road 10275-13276 20000-32000 2.7%Malibu Town 6063-9820 12000-21000 2.6%Nirvana Country 7015-9187 14000-20000 2.5%Orchid Island 6924-9693 15000-19000 2.4%Palam Vihar 5107-8937 10000-17000 2.5%Sector 7 7389-12498 8000-14000 1.7%Sector 15 8096-10401 15000-23000 2.6%Sector 23 6554-12145 12000-20000 2.2%Sector 28 9946-13109 19000-29000 2.5%Sector 30 9658-13479 18000-26000 2.3%Sector 31 8159-12602 16000-24000 2.5%Sector 33 6302-8990 14000-20000 2.8%Sector 40 6080-10718 13000-22000 2.9%Sector 42 12287-15818 18000-31000 2.1%Sector 43 9474-13908 18000-29000 2.5%Sector 45 5786-10078 12000-21000 2.6%Sector 46 5389-9373 12000-19000 2.7%Sector 47 6874-10411 14000-22000 2.8%Sector 48 8020-10663 14000-22000 2.5%Sector 49 7783-10041 13000-20000 2.3%Sector 50 7101-9592 14000-20000 2.4%Sector 51 6385-9377 14000-20000 2.6%Sector 52 5903-9399 10000-17000 2.4%Sector 54 9949-15399 15000-27000 2.2%Sector 56 5961-8314 12000-19000 2.6%Sector 57 6443-8917 12000-18000 2.2%Sector 66 7014-9073 13000-19000 2.4%Sector 70 5222-7618 10000-17000 2.5%Sector 81 4228-5914 7000-10000 2.1%Sector 82 3954-5987 6000-10000 2.2%Sector 83 4392-5892 5000-9000 1.8%Sohna Road 6195-9833 13000-21000 2.6%South City 1 6643-10990 14000-24000 2.4%South City 2 5507-9399 13000-22000 2.9%Suncity 10238-14870 15000-26000 1.9%Sushant Lok 1 6306-10421 14000-25000 2.8%Sushant Lok 2 5186-8520 12000-19000 2.8%Uppal Southend 5102-8627 12000-18000 2.6%



Capital values

Noida Greater Noida Express Way 3928-6086 10000-16000 3.1%Sector 21 6189-8570 13000-20000 2.6%Sector 29 5668-8343 13000-20000 2.7%Sector 30 8017-14528 10000-18000 1.6%Sector 34 5694-8664 14000-20000 2.9%Sector 36 10350-17641 10000-16000 1.2%Sector 37 5856-9161 13000-23000 2.8%Sector 40 8138-15780 11000-18000 1.2%Sector 41 8129-13946 11000-16000 1.3%Sector 44 6468-11111 14000-22000 2.4%Sector 45 5066-7372 12000-17000 2.8%Sector 46 4633-5575 10000-15000 3.1%Sector 47 6859-12851 10000-15000 1.3%Sector 49 2673-4252 10000-15000 4.6%Sector 50 5812-9232 13000-20000 2.7%Sector 51 5310-7885 12000-18000 2.8%Sector 52 5660-8215 13000-20000 3.00%Sector 61 6229-8936 12000-18000 2.4%Sector 62 4993-7130 11000-17000 3.00%Sector 70 4347-6029 11000-15000 3.00%Sector 74 4419-5542 10000-13000 2.8%Sector 75 4008-5539 10000-13000 2.8%Sector 76 4361-5564 10000-14000 2.9%Sector 77 4644-6072 10000-14000 2.8%Sector 78 4564-6220 10000-14000 2.7%Sector 82 4622-6557 9000-15000 2.6%Sector 93 5251-8306 12000-19000 2.7%Sector 93A 5041-8053 11000-18000 2.6%Sector 93B 6172-9219 14000-19000 2.6%Sector 100 5085-6336 12000-17000 2.9%Sector 104 6884-9320 13000-16000 2.2%Sector 107 5055-6483 10000-14000 2.5%Sector 110 4348-6075 10000-14000 2.9%Sector 119 4218-5623 9000-13000 2.6%Sector 120 4406-5977 9000-14000 2.7%Sector 128 5123-8264 12000-16000 2.6%Sector 137 4407-5889 9000-14000 2.7%Sector 168 4153-5793 10000-14000 2.8%



Capital values

Chi 3171-5197 7000-11000 2.6%Chi 4 4379-5576 8000-11000 2.3%Chi 5 2896-4058 6000-10000 2.9%Chi-Phi 3174-5221 7000-11000 2.6%Noida Extension 2835-4113 7000-10000 2.9%Omega 3318-4663 7000-11000 2.8%Omicron 2352-3766 5000-9000 2.6%Pari Chowk 3453-6209 8000-14000 2.8%Phi 2 3058-5312 7000-12000 2.6%Sector 1 2896-3969 7000-10000 2.9%Sector MU 3457-4470 5000-8000 2.1%Sector-Pi 3002-4579 7000-10000 2.7%Zeta 2782-4192 6000-10000 2.8%Zeta 1 2798-4203 7000-10000 2.9%



Capital values

Aditya Mega City 3964-5412 9000-13000 2.9%Ahinsa Khand 1 4892-7310 11000-16000 2.6%Ahinsa Khand 2 4090-5753 9000-14000 2.8%Crossings Republik 3032-4216 6000-9000 2.5%Garhi 2490-3795 5000-9000 2.7%Gyan Khand 3648-5042 10000-16000 3.7%Gyan Khand 1 3655-5029 10000-15000 3.5%Indirapuram 4278-6549 10000-15000 2.8%Kaushambi 4804-7462 11000-18000 2.8%Mohan Nagar 4135-5928 8000-11000 2.4%Neeti Khand 1 3562-5037 11000-17000 4.1%Niti Khand-Indirapuram 3630-5227 11000-17000 3.8%Nyay Khand 1 3343-4627 12000-16000 4.2%Orange County 5679-7116 12000-17000 2.8%Raj Nagar Extension 2695-3977 6000-9000 2.6%Rajendra Nagar 3520-5431 8000-13000 2.6%Shakti Khand 3 3630-5183 11000-18000 3.9%Shakti Khand 4 3859-5554 10000-15000 3.2%Shipra Suncity 4545-6536 12000-17000 3.2%Vaibhav Khand 4227-6238 10000-15000 2.8%Vaishali Sector 2 3630-5022 11000-17000 3.7%Vaishali Sector 4 3915-5615 11000-17000 3.8%Vaishali Sector 5 3880-5653 12000-17000 3.4%Vaishali Sector 6 3596-4926 11000-17000 4.1%Vasundhara Sector 3 3043-4534 9000-16000 3.8%


Corridor Description and RatingAreas Included: Sectors 37C, 37D, 99, 99A, 101, 102, 103, 104, 105, 106, 107, 108, 109, 110, 110A, 111, 112, 113, 114 and 115

Fig 1: Map of the corridor

D W A R K A E X P R E S S W AY

Introduction: The Dwarka Expressway or the Northern Peripheral Road (NPR) Corridor covers new development areas along and off the Dwarka Expressway from Sector 37C in the south to Sector 115 in the north. Except for Sector 37C and 37D, all other sectors fall west of the Delhi-Rewari Railway Line which marks the eastern boundary of the corridor and separates it from old established areas. While the Expressway continues further south from Sector 37D, only the portion till Sector 37D has been considered as this area is most dependent on operationalization of the Dwarka Expressway.

This corridor is import as it accounts for significant development activity. It is home to more than 100 residential projects with 50,000 plus residential units between them. The entire corridor, encompassing residential projects and infrastructure (roads, water, sewerage, electricity), is in various stages of development. The corridor has seen participation by end-users and investors alike and hence, lot of public interest is riding on the development of this corridor.

Current Status: Projects in the corridor are in various stages of construction with some having received part Occupation Certificate (OC). However, most of the projects are some time away from completion. HUDA is in the process of laying infrastructure in the corridor. This includes water distribution network, sewerage pipes, electricity and construction of various sector roads and completion of the Dwarka Expressway.

The real estate activity is at a low tide and new project launches have declined sharply as compared to the previous years. There is existing unsold inventory in the market along with options available in the resale segment.

The corridor offers options of apartments, high-end villas and residential plots. The capital value is higher in sectors close to Delhi. Price in the re-sale market ranges from Rs 4,000-9,000 per sq ft. The average price level in the same is Rs 5,043 per sq ft. Compared to the residential markets of Gurgaon which are to the east of NH-8, the average price level is 30%-40% lower.

In terms of acquisition cost (Rs lakh), almost one fourth supply in the corridor is in the Rs 60-80 lakh bracket. This is followed by the Rs 80 lakh to Rs 1 crore segment. About 55% of supply in re-sale market is in the Rs 60 lakh to Rs 1.2 crore range.

The price levels across most sectors has remained stagnant for some time and this situation is likely to persist in the short to medium term.

The corridor presently lacks social and support infrastructure. A few schools have opened in the corridor but for all its major and minor requirements, the projects in the corridor for foreseeable future will have to rely on infrastructure in the east of the Delhi-Rewari Railway Line in old areas of Gurgaon.

New Development Policies & Impact on Dwarka Expressway: The Haryana Government has introduced two new policies which will impact the real estate sector in terms of supply and price levels. These policies are:

a) New Integrated Licensing Policy 2015 (NILP-2015): Under NIPL-2015, the minimum area norms for developing a residential plotted colony has been reduced from 100 acre to 25 acre. Earlier the residential development was restricted to 20% of the net planned area of a sector and balance land remained unused. Under NILP-2015, licenses will be granted for area beyond 20% allowed in each sector for Group Housing. Land which was hitherto lying unused will become available for developing residential colonies.

This means an additional supply in the form of residential plots and Group Housing will enter the market in due course of time. This will help to keep the land value and price of end-products at a low level. The overall price level in the market will remain stable as more land becomes available through this policy.

b) Transit Orient Development (TOD) Policy: The state government has come out with the Transit Orient Development Policy which aims to encourage commercial & residential development along the Mass Rapid Transit System (MRTS) Corridor. Under the policy,

areas which fall under certain distance on either side of the MRTS Corridor will be eligible for increased Floor Area Ratio (FAR). This will be available even if applicable FAR as per original development norm for the area has been exhausted.

Dwarka Expressway has a Metro Corridor planned along its alignment. The area on either side of the expressway will be eligible for higher development. This will put more residential and commercial developments in the market.

The increased supply under the two new policies will add to more supply in the market and this in turn, is likely to keep prices at a stable level.

Present Status: The Northern Peripheral Road (NPR), more famously known as Dwarka Expressway, is a 150 meter wide and 18 km long road which will connect Dwarka in Delhi with Kherki Dhaula on the National Highway-8 (NH-8) in Gurgaon. The project was commissioned in 2007 and while most of the project (14 km out of 18 km) has been completed, it has not become operational as some key patches of the alignment are stuck in litigation.

The future of the corridor is linked to NPR becoming operational as it presently lacks acceptable level of connectivity. We present below the key points which summarize the present scenario with respect to NPR and also highlight the key challenges holding up the completion of the road.

a) Ministry for Road Transport, Highways and Shipping has recently announced the granting of National Highway status to NPR. As and when this actually happens, the land acquisition, construction and management of the road will be undertaken by National Highway Authority of India (NHAI). This is expected to speed up clearance of pending issues. NHAI is in the process of undertaking a Detailed Project Report (DPR) of the expressway. However, the timelines for actual process of final notification and takeover by NHAI are not clear at present.

b) HUDA is planning to make 13.5 km stretch

Corridor of growth (COG)41

About the Corridor

Properties available in the corridor

The corridor offers a wide variety of price ranges, although most of the apartments in the region are in the mid

segment. More than 50% of the supply is priced between Rs. 40 lacs and 1 crore. This

supply is concentrated in the middle of the expressway. The supply costlier than 1 crore is mostly in sectors touching Delhi, and forms a significant 36% of the supply. A small portion of the supply, amounting to 10% of the total,

is priced at less than 40 lacs, and is mostly in sectors at the far end of the corridor, in sectors like 99A etc. The corridor is relatively new compared to the rest of Gurgaon market, and almost 80% of the supply here is still under

Overall Connectivity Social Infrastructure Security/Water

Fig 2: Distribution of properties by price Fig 3: Distribution of properties by delivery status Fig 4: Distribution of properties by bedroom configuration


of Dwarka Expressway operational by August 2016. This stretch is free of any litigation and most of the work has been completed. It will connect to NH-8 at Kherki Dhaula through an underpass or a flyover. This will provide much required connectivity between sectors and other areas of Gurgaon through NH-8 as well as the existing access roads.

c) The Haryana Urban Development Authority (HUDA) had reached a settlement with residents in New Palam Vihar and Kheri Dhaula whose homes were to be acquired for implementation of the NPR. The litigation had been holding up road construction activity in Sector 110 towards Delhi and Kherki Dhaula near NH-8. As part of the settlement plan, HUDA is to allot alternate plots to around 700 families in Sectors 37C and 110A. However, this process has not yet been completed due to difference of opinion between litigants and HUDA on various aspects of the land allotment plan. Consequently, construction activity on the incomplete stretches has not yet started.

d) The final 1.3 km stretch of Dwarka Expressway which connects it to Delhi actually falls in Delhi and development here is the

responsibility of the Delhi Development Authority (DDA). However, DDA has not yet acquired land for implementing this stretch of the road. No clear timelines are available on when this will be completed. Therefore, even if HUDA completes its part of the Dwarka Expressway, connectivity to Delhi might still not be available.

e) The Railway-Over-Bridge (ROB) on the Delhi-Rewari Line is yet to be completed. As the ROB ends towards Sector 99, a factory exists in the alignment of NPR. This factory is yet to be removed for work to be completed.

f ) There are other flyovers planned at some critical junctions along the expressway but their development timelines are not clear.

Outlook: Dwarka Expressway offers a relatively less expensive residential option to consumers along with integrated development of commercial and retail segments. The corridor has potential to evolve into a stand-alone hub independent of main Gurgaon. However, delay in completion of the Dwarka Expressway is the biggest bottleneck facing the corridor.

Given the present situation, completion of the Dwarka Expressway will take at least another 2-years. However, the silver lining is the announcement of NH status to the highway. Once the Dwarka Expressway comes under NHAI, it will help to address a number of bureaucratic hurdles. For example, the issue of inter-state coordination for completing the expressway on the Delhi side will get addressed as a single body (NHAI) will be responsible for the whole expressway.

Even the planned partial operationalization of the expressway and connectivity to Gurgaon will add some impetus to the residential segment in the corridor. Price levels are expected to remain stable in the medium term as unsold inventory will take some time to clear.

Purchasing a residential option in the market is advisable for those who are looking for relatively less expensive options with proximity to both Gurgaon and Delhi. However, consumers need to keep a 2-3 year window before the corridor takes shape of a habitable area with proper physical and social infrastructure.


The top sectors by demand are dispersed across the corridor, with sector 37C, which commands a whopping half of

the demand for the corridor, being located on the farther end of the corridor from Delhi. The

sector is closest to NH8 among all the sectors on the corridor and around 3 kms from Hero Honda Chowk. Sectors 112, 110A, 110, and 109 all lie very close to Dwarka Sector 21, and benefit from proximity to Delhi, and Udyog

Vihar. Sector 103, and 108 are located in the middle of the corridor, and figure on the list bases the supply of residential apartments in these sectors. The yields vary widely, ranging between low of 2.2% and high of 3.8%.

construction. This is also partly because of the construction delays faced by the projects here over the last 2-3 years. Overall, the market is tilting heavily towards 3 BHKs, which form more than 50% of the total supply, followed by 2 BHKs, forming another 30%. 4 BHKs and above forms another one eight of the corridor’s supply, leaving just 5% for 1 BHKs.

The corridor provides a moderate range of choices for each bedroom configuration with prices varying along the length of the corridor, falling as one moves west on it, and away from Dwarka Sector 21. While the range of apartment sizes is rather large, the majority of configurations of 1, 2, 3 and 4 BHKs are around 610, 1,150, 1870, and 2,800 Sqft respectively.

Sales Price Covered Area ( Lacs) (Sq.ft)

1 12-40 500-650

2 20-100 900-1550

3 10-150 1400-2500

4 BHK and above 90-300 2200-3500

Best sectors to invest in a home Based on rental demand in sectors

Table 1: Sizes and prices of flats available for various room configurations

Based on home buying demand in sectors

Fig 5: Top 10 sectors by consumer for renting a house

Fig 6: Top 10 sectors by consumer for buying a house

Best bedroom configurations to buy Preferred buying and renting options

Buying Renting Total (BHKs) Total (BHKs)

1 BHK 5% 3%

2 BHK 30% 32%

3 BHK 53% 57%

4 and Above 13% 7%

Table 2: Demand distribution for buying and renting

The home buying tendency follows closely with the renting seeking tendency on the corridor as all the localities which have

high rental demand will give better returns to

owners and hence more people will be looking to buy in these localities. Consequently, six out of the top ten localities by consumer searches for buying a house are in the top ten localities

by consumer searches for renting in a house. The property prices available in the corridor are reasonable and provides potential return on investment.

As most of the recent demand is driven by end use rather than investment, the buyers are looking for bigger apartment

types in the market suitable for living. As a result, the dominant BHK type for both buying and for renting-in is the 3 BHKs, followed by 2 BHks. Here, 53% demand distribution is for buying 3BHK units and demand distribution

for renting-in is 57% in the corridor. Noteworthy is the fact that the demand for 4BHks and above is more than the demand for 1BHKs, a phenomenon rarely witnessed in the other geographies of the country, and reinforces the preference of bigger apartment sizes by buyers in this market here.

Price changes and future prospects Historic Price movement

6 monthly change Yearly change

-5% -7%

Table 3: Historical Price changes

The average price of the Dwarka Expressway corridor has been falling for the last one year, mirroring the weakness

in the overall Gurgaon market.

The corridor has been witnessing fewer launches, and the sale transaction activity has been slow. Although the sales numbers were expected to pick up post resolution of the dispute for the land under Dwarka Expressway, the same did not happen, and the prices have fallen by 5% over the last six months and by 7% over the last one year.

However, we expect that the prices have hit the bottom, and will not fall drastically goring forward.

Fig 7: Historical Price changes of corridor


Corridor Average Price Rs/sqft

Price movement for top sectors by Consumer Preference

The various localities in the corridor has given mixed price variations over the last quarter, with three of the two corridors witnessing a fall in the

prices. The price changes have varied greatly, and there is no clear trend geographically.

Hence, the price variations in the corridor are a result of seasonal trends, while having a downward pressure due to the weakness in the overall property market in the city of Gurgaon.

Fig 8: Price changes in top sectors by consumer demand

Master Plan

The land use in corridor is mostly residential in nature, providing ample land for present and future development

of residential projects. The sectors 106, 109, 112, and 113 have strips of land adjacent to Dwarka Expressway, which are commercial in

nature. However, for the foreseeable future, the commercial space will be restricted to Cyber city area, Udyog Vihar, and Sector 21, which has Unitech SEZ. Besides the core land uses, every sector has options for commercial and institutional development on

land adjacent to highways and broad roads, and the social infrastructure is expected to improve in the foreseeable future, even though the corridor does not have many facilities currently.

Fig 9: Land use of various sectors in the corridor


RESIDENTIAL COMMERCIAL PUBLIC AND SEMI-PUBLIC INDUSTRIAL OPEN SPACES

Infrastructure UpdatesDwarka Expressway: It has been long in planning and progress has been stagnant for some time due to land litigation issues, with home owners losing land to the expressway contesting the compensation in Chandigarh High court. However, the issue has been settled last year, and the construction for the remaining stretch of the corridor is expected to

resume soon. The finished corridor will connect to Dwarka sector 21 on one end, which also operational metro, and NH8 on the other end, providing full mobility to the population living on the corridor.

Delhi Metro: In the next phases of the Delhi Metro, where metro will be further extended to the satellite towns like Gurgaon, and Noida,

as part of Gurgaon Masterplan, the metro will be running in between Dwarka Expressway, connecting to Sector 21 station in Dwarka on one end, and towards the metro line which will be coming from Huda City Centre side. However, there is no definite timeline to the projects.


Dwarka Expressway: Realty hotspot in NCR

Spurred by affordable property prices, proximity to Delhi, Gurgaon, and the Indira Gandhi International Airport as well as infrastructural advantages, the Dwarka Expressway area has not only emerged as a hotspot in the Delhi NCR region but has also become a favourite destination for property buyers in recent years. The stretch has been planned as an alternate link road between Delhi and Gurgaon, and is expected to ease the traffic situation on the Delhi-Gurgaon Expressway. Plans are also to bring a Metro line to this area, which will further improve its connectivity with other areas.

n Source: The Times of India

Dwarka Expressway is top investment destination

Dwarka-Gurgaon Expressway, also known NPR (Northern Peripheral Road), is a Huda (Haryana Urban Development Authority) project designed to ease traffic rush on the operational Delhi-Gurgaon Expressway (Delhi-Jaipur Highway). Dwarka Expressway is the state government’s widest-ever-150 metre-expressway project that connects NH-8 at Kherki Daula to Dwarka. Of the 630 acres needed to construct the expressway, 600 acres have already been acquired and the rest is expected to be acquired soon. More than 33,000 houses, with an approximate sale value of 8,000 crores, are under construction in different sectors along Dwarka Expressway. As Dwarka Expressway is close to Gurgaon, there is a huge demand for quality residential space and infrastructure.


Top 5 reasons to invest in Dwarka Expressway

Dwaraka Expressway is one of the most sought after markets. The locality has been growing slowly and witnessing potential infrastructural development. It is an ideal spot for investment purpose. Investors who are looking for better returns can invest in this locality to reap huge return on investmnet in the long term. Its close proximity to Delhi and IGI Airport will always ensure a better lifestyle and price. In fact, the connectivity is quite good in the locality through all modes of communication. It will be parallel to the NH8 till it merges ahead of the IFFCO Chowk. The locality is considered a potential growth corridor.

n Source: Magicbricks Bureau

Huda to speed up Dwarka e-way work

The Dwarka Expressway work, which is planned to ease connectivity, will soon speed up the construction work. The government has asked the urban development agency to speed up the process of allotment of alternative plots to the families affected by the project. Moreover, there is a proposed infrastructure to build a railway over-bridge near Basai. Indian Railways will streamline the work and ensure completion of over-bridge on time. The expressway was planned to decongest traffic in Gurgaon by allowing vehicles from Jaipur to skip the expressway and head towards Dwarka and IGI Airport. Huda had subsequently offered the rehabilitation plan, paving the way for construction of a 2.5km stretch of the road.


IN NEWS

Corridor Description and RatingAreas Included: All sectors under Sohna Master Plan-2031


S O H N A M A S T E R P L A N

Introduction

South of Gurgaon refers to the area which falls under the Development Plan-2031 of Sohna town. The Master Plan area starts approximately at a distance of about 14 km from the intersection of Golf Course Extension Road/Southern Peripheral Road and Sohna Road. The corridor is in the initial stages of development with some developers having launched large and small residential projects here.

Master Plan

The land use plan under the Development Plan-2031 is spread across approximately 14,000 acre. The corridor is divided into 36 sectors of which 18 are dedicated for residential development. The land use plan divides the corridor into two sections - the northern two third portion towards Gurgaon consists mainly of residential sectors while the remaining one third towards south, close to the KMP Expressway, is dedicated for industrial development.

In terms of land area, these residential sectors amount to about 30% or about 4,300 acre of the total land use area under the Development Plan-2031.

The second highest category of land use is for industrial development with a share of 22.07% of the land use or about 3,100 acre. The corridor already has an industrial cluster and more area has been earmarked for industrial use under the Development Plan-2031. This has been done to cater to the requirements for industrial & warehousing space which is likely to arise as the KMP Expressway passes very close to the corridor while the DFC of Indian Railways passes through it.

HSIIDC will be developing a 1,500 acre Industrial Model Township (IMT) spread across six sectors (Sectors 19, 19A, 20, 20A, 21 and 21A) of the corridor which borders the KMP Expressway. This also includes a dedicated area for mega Leather Manufacturing Park. HSIIDC has already acquired 607 acre land for this IMT.

The existing Gurgaon-Sohna-Alwar Road which connects the corridor to Gurgaon is to be widened into a 60-meter road with a 50-meter green-belt on each side. Dividing roads of the sector are planned with a minimum width of 60-meter under the development plan.

Present Status

As per the latest update from the Department of Town & Country Planning (DTCP) of the Haryana Government, total 38 development licenses have been given to various developers. These licenses cover development permission for 804 acre land area covering mainly the residential (98.5%) segment. The balance area is for commercial development.

Licenses issued under the residential segment cover residential group housing, residential plots, projects under Affordable Housing Policy (AHP) of the Haryana Government and one large 100-acre plus township.

Currently, some developers have launched projects in the corridor. These are located mainly in sectors towards the north and which are along the existing Gurgaon-Sohna Road. A couple of projects have been launched in the residential sectors which are towards the industrial half of the corridor.

Development in all these projects is in the initial stages and the hand-over for group housing projects is expected in 2019-2020. Residential plots are likely to be handed over in the next 1.5-2 years.

The base selling price for apartments and builder floors varies as per the payment plan, extent of furnishings provided and location of the project. The price range in the corridor is Rs 3,500-6,300 per sq ft. Units of higher prices come with extensive furnishing and capital goods.

Growth Potential

The corridor derives its growth potential from its position with respect to the southern part of Gurgaon. After the development potential is exhausted in sectors along and off the Golf Course Extension Road in Gurgaon (Sectors 58 to 67A), there is no area for further development in this direction.

In terms of price, the corridor compares favourably with the price levels along the Golf Course Extension and Sohna Road. It is also in tandem with sectors (Sectors 68 to 73) along and off the under-construction stretch of the Southern Peripheral Road (SPR).

The average price level (Rs 8,200 per sq ft) in the Golf Course Extension is almost 50% more than the average price in the corridor (Rs 4,229 per sq ft). Price levels in Sohna Road are about 30% more than in South Gurgaon. The corridor offers good options for those who cannot afford a house in the established areas of the city.

Another advantage the corridor has is that there is existing connectivity with Gurgaon through the Gurgaon-Sohna-Alwar Road. Unlike the


About the Corridor


Sohna Master Plan Area presently offers properties across Rs 20 lakh to Rs 2.5 crore price bracket. However, majority of the

supply is concentrated in the Rs 40-60 lakh budget segment with 45% share. The second

highest share is of Rs 60-80 lakh bracket with about 25%. A healthy percentage of properties are also available in the Rs 20-40 lakh bracket. The main reason for properties being available in the lower budget segment is that unlike

Gurgaon, this corridor has more 2BHK options than 3BHK units. The smaller size of the 2BHK format helps to keep the overall acquisition cost low for buyers. Options of 3BHK are also available in the Rs 40-60 lakh segment as



Dwarka Expressway, projects in the residential sectors along this road are not dependent on development of the access road.

Further, an alternate 90-meter link road is proposed which will connect the corridor to Gurgaon. This road will originate from Sector 34 of the Sohna Development Plan-2031 and connect with Gurgaon at the sector dividing road of Sectors 63A and 64.

The planned industrial development in the corridor will serve as a growth driver and a pull factor as it creates blue and white collar jobs.

Challenges

Consumers need to consider a development timeframe of 3-5 years before the corridor evolves into an established residential destination. The delivery timeline for apartments is a minimum 3 years; it is safe to add

a buffer of 1 year to this timeline. The development of infrastructure in the corridor like sector roads connecting internal sectors with each other and existing Gurgaon-Sohna Road, water and sewerage network etc by HUDA is also likely to take this much time.

The area lacks in public transport facility. Present connectivity is through state transport/private buses from Gurgaon to Sohna or long route buses which pass through Sohna. Shared autos also ply between Gurgaon and Sohna. Consumers will have to mainly rely on private transport till more dedicated public transport facilities are made available.

The Master Plan has provisions for support amenities like hospitals, schools and colleges but no clear development timelines can be predicted for them. Residents will have to rely on the social infrastructure of

Gurgaon or close to Gurgaon for their requirements.

As with the overall market conditions, price levels in the corridor have been stagnant for some time. Between Sep 2013 and Mar 2016, the average price levels declined by 5%. Price levels are expected to remain stable in the short to medium term.

Outlook

South Gurgaon offers residential options for those who intend to work in Gurgaon but cannot afford to purchase a house due to high overall capital value in the city. While the distance between Gurgaon and the corridor may seem large today, it is large only in a relative sense. Once the southern sectors of Gurgaon are developed and the corridor sees some development, this perception will most likely fade away.



these are available in different sizes. Smaller sized units are in the lower budget segments. About 52% supply of 3BHK options is in the Rs 60 lakh to Rs 1 crore segment. A small percentage of supply is also available in the 1BHK format. This is a departure from the general practice in Gurgaon where smaller format units are not available. Options of

1BHK are available in the Rs 20-40 lakh budget segment.

The corridor also has projects under the Affordable Housing Policy of Haryana Government. This policy makes smaller sized 2 and 3BHK units with corresponding low price (fixed by state government) available to consumers.


1 BHK 13-30 520-700

2 BHK 20-60 920-1300

3 BHK 50-90 1400-1900

4 and above 75-150 2100-2500




1 BHK 4% 29%

2 BHK 58% 43%

3 BHK 33% 28%

4 and Above 5% 0%

Table 2: Demand distribution for buying and renting Consumers prefer the 2BHK format in the corridor. About 58% consumers are looking for 2BHK format in the Rs 20-40

lakh bracket followed by 31% demand in the Rs 40-60 lakh budget segment. The 3BHK is the second most preferred format with demand across different budget segments, depending upon preferred size of the unit.

Bulk (55%) of the demand is in the Rs 60-80 lakh segment. These 3BHK units are of bigger sizes and hence, higher cost. The Rs 40-60 lakh range also has a healthy 32% share of demand for 3BHK units. These are of relatively smaller size with about 15% less saleable area as compared to the 3BHK units preferred in the higher budget segments.

Price changes and future prospects Historic Price movement Table 3: Historical Price changes

The price level in Sohna has been flat for last couple of years. Sohna has been projected as extension of Gurgaon and

is being marketed as ‘South Gurgaon’. It was expected that lower price level in Sohna and its proximity to Gurgaon will drive sales.

However, there is still some perception issue amongst buyers about its location. Also, the development in the projects is in very early stages. After witnessing project delays all around, consumers are wary about buying in under-construction projects and in areas where infrastructure development is still far away in future. The price level has consequently stayed at almost same level as few years back.



-1% 1%

Master Plan


Almost 14,000 acre land has been earmarked for different uses in the Master Plan. Of this, about 30% is

reserved for residential development. Till December 2015, the Haryana Government had granted 38 licenses to various developers for residential and commercial development

in sectors under the Master Plan. More than 98% of these licenses are for residential development. Haryana State Industrial Infrastructure Development Corporation (HSIIDC) has acquired more than 600 acre land for development of an Industrial Model Township (IMT) in some sectors of Sohna.

The total area envisaged for IMT Sohna is about 1500 acre. Alignment of the Dedicated Freight Corridor (DFC) passes through the Master Plan area of the corridor. A Transport Nagar adjacent to it in Sector 27 has also been planned. It will be spread over 244 acre.


Infrastructure UpdatesKMP Expressway :The Kundli-Manesar-Palwal (KMP) Expressway passes through the southern side of the town. The proposed access point of KMP Expressway from Sohna Town is situated approximately at a distance of 8-km.

The Manesar to Palwal section of the KMP Expressway has become operational

Affordable Housing Policy: Nine development licenses have been issued under

the Haryana Affordable Housing Policy (AHP) in the corridor. These projects will provide affordable options to consumers.


South Gurgaon: A great realty destination choice

South of Gurgaon has a healthy realty market. With the development of new realty projects, the population of Greater Gurgaon is expected to grow by nearly 10 times, by 2031. Considering these developments, it is the best time to enter this market. As per development plan, Greater Gurgaon’s realty market will be an independent market unaffected by price movements and absorption of projects located along Dwarka-Gurgaon Expressway or Golf Course Extension Road. The Greater Gurgaon market will cater to the affordable segment. A proof of this lies in the high number of transactions taking place in this area.


11 builders to develop ‘South of Gurgaon’

Builders are making joint efforts to develop Sohna as an upcoming destination, called `South of Gurgaon’. Delay in the development of infrastructure in areas like Dwarka Expressway and New Gurgaon has affected buyers and builders alike. On Dwarka Expressway, for instance, some projects are complete but possession cannot be given as the basic infrastructure -like main road, sector roads, and sewer lines ¬ is not in place. Licenses have already been given to build around 65,000 houses on 700 acres of land. The number of houses that can be built per acre using the same permitted area is higher in South of Gurgaon as against that in Gurgaon. This will enable them build smaller houses.


GBCI establishes South East Asia base in Gurgaon

Green Business Certification Inc. (GBCI), the premier organization independently recognizing excellence in green business industry performance and practice globally, announced its incorporation in India. The new GBCI office, located in Gurgaon, will serve to facilitate the global growth of GBCI and its sustainability programs. By

incorporating GBCI in India, the company will be able to continue their efforts to green the built environment in India and across the globe, with new added support and on the ground capabilities. Leveraging the work done by Gopalkrishnan, USGBC’s regional director for market development in India, GBCI India will act as the South East Asia office of GBCI.


Gurgaon is growing and so are its challenges

What is it like to have a home in Gurgaon? Widely believed, the kind of feel Gurgaon lends is unparalleled. Be it job opportunities, shopping malls in the vicinity or a cosmopolitan neighbourhood Gurgaon is unbeatable. On one hand is the ever-increasing floating population. On the other hand is the challenge of accommodating any plans of developing infrastructure in an already occupied area. Authorities have realized that by the time a two-lane road gets sanctioned and work begins, the need arises for a four lane road in the same spot. With the kind of foresightedness that the corporation needs to work with, certain plans that came to the fore were indeed futuristic.


Raheja’s Maheshwara to redefine Gurgaon market

Raheja Developers Ltd announced the launch of “Maheshwara” in South Gurgaon. The project will redefine the real estate market owing to the affordable prices while all the luxury accompaniments of Raheja projects are kept intact. A 2-BHK apartment (1080sq.ft.) starts at an all inclusive price of Rs 34.63 lakh @2975 per sq.ft on super area which is almost 20 % lower than the prevailing market price with a guarantee of quality. There are no extra charges for PLC, parking reservation charges & club membership. There is a guarantee of no charge in case the super area increases in future.


IN NEWS


Corridor Description and RatingAreas Included: Sectors 76, 77, 78, 79, 79A, 79B, 80, 81, 81A, 82, 82A, 83, 84, 85, 86, 88, 88A, 88B, 89, 89A, 90, 91, 92, 93, 95 and 95A


N E W G U R G A O N

Introduction: New Town Gurgaon consists of development across Sectors 76 to 95B of the Gurgaon-Manesar Urban Complex-2031 Master Plan. In total there are 30 sectors which cover development in residential, commercial and public & semi-public segments. National Highway-8 (NH-8) divides the corridor into two parts. Part one consists of the area under Sectors 76 to 80 which falls towards the south of NH-8. Other Sectors (81 to 95B) are towards the north of the highway with the Delhi-Rewari Railway Line forming the northern boundary of this part.

The Northern Peripheral Road (NPR) or Dwarka Expressway forms the eastern boundary of part two and is contiguous with Sectors 83, 84, 88, 88A and 88B. Once completed, it will join NH-8 at Kherki Dhaula. While Dwarka Expressway will enhance connectivity with this part of the corridor, connectivity is not limited to it. The sector roads of 81A/82A and 82A/83 open into service roads on the side of NH-8. These sector roads also provide access to other sectors situated away from NH-8. Pataudi Road is another existing road which provides connectivity to old Gurgaon.

A 3.2-km Central Peripheral Road (CPR) is planned which will connect Dwarka Expressway with the Southern Peripheral Road at intersection of Sectors 84 and 88.

The main access road for Sectors 76 to 80 is NH-8 and the sector roads are planned to open on the service roads on the side of NH-8 at three locations. As per the Master Plan the sector road of 78/80 and 77/78 will connect directly with the sector roads across NH-8. A 60-meter wide road is planned which will connect Sectors 76, 77, 78, 79, 79A and 79B to the Southern Peripheral Road.

Current Status: Sectors north of NH-8 are not dependent only on Dwarka Expressway for connectivity to other parts of Gurgaon. Because of this, many projects in these sectors have obtained complete or partial Occupancy Certificates (OC) and families have already starting living here.

From the budget perspective, 63% supply in the re-sale segment in the corridor is in the Rs 60 lakh to Rs 1 crore budget segment with Rs

60-80 lakh and Rs 80 lakh-Rs 1 crore having almost equal share. The 3BHK is the dominant format with more than 50% share of supply. The corresponding share of 2BHK segment is 28%. The average covered area of 3BHK units is 1750 sq ft while that of 2BHK is 1200 sq ft.

The average price in the corridor is Rs 4,958 per sq ft. The average price on both sides of NH-8 is almost the same. The large average size of apartments means that even for manageable capital value (Rs/sq ft), the total acquisition cost (in Rs Lakh) will be high.

Sectors 82, 83 and 86 are the top three sectors in terms of supply and consumer preference. They account for almost 40% of consumer preference as well as supply in the corridor.

Infrastructure: The Haryana Urban Development Authority (HUDA) is in the process of acquiring land for various development works like laying of sector roads, water supply, storm water drainage, recycled water circulation and sewerage system in these sectors. In case of Sectors 81 to 95, it had fixed the compensation amount for land acquisition in November 2015. This land is to be used to implement infrastructure like sector roads and water distribution network.

For Sectors 68-80 (of which 76-80 fall in the corridor), water supply network is likely to be implemented by the mid of next year. HUDA was facing land acquisition issues in these sectors for laying the infrastructure.

Many projects at present rely on ground/bore-well water and water tankers. Electricity in some cases is also being supplied through generator sets till power connection is made available. Therefore, it is advisable that buyers do a thorough check on these parameters in the projects they are exploring.

New Development Policies & Impact on Dwarka Expressway :The Haryana Government has introduced two new policies which will impact the real estate sector in terms of supply and price levels.

These policies are:

a) New Integrated Licensing Policy 2015 (NILP-2015): Under NILP-2015, the minimum

area norms for developing a residential plotted colony has been reduced from 100 acre to 25 acre. Earlier the residential development was restricted to 20% of the net planned area of a sector and the balance land remained unused. Under NILP-2015, licenses will be granted for area beyond 20% allowed in each sector for Group Housing. Land which was hitherto lying unused will become available for developing residential colonies.

b) Transit Orient Development (TOD) Policy: The state government has come out with the Transit Orient Development Policy which aims to encourage commercial & residential development along the Mass Rapid Transit System (MRTS) Corridor. Under the policy, areas which fall under certain distance on either side of the MRTS Corridor will be eligible for increased Floor Area Ratio (FAR). This will be available even if applicable FAR as per original development norm for the area has been exhausted.

Dwarka Expressway has a Metro Corridor planned along its alignment. The area to the west of the expressway in the corridor will be eligible for higher development. This will put more residential and commercial developments in the market.

Present Status: The Northern Peripheral Road (NPR), more famously known as the Dwarka Expressway, is a 150-meter wide and 18-km long road which will connect Dwarka in Delhi with Kherki Dhaula on the National Highway-8 (NH-8) in Gurgaon. The project was commissioned in 2007 and while most of the project (14 km out of 18 km) has been completed, it has not become operational as some key patches of the alignment are stuck in litigation.

We present below the key points which summarize the present scenario with respect to NPR and also highlight the key challenges holding up the completion of the road.

a) Ministry for Road Transport, Highways and Shipping has recently announced the granting of National Highway status to NPR. As and when this actually happens, the land acquisition, construction and management of the road will be undertaken by the National


About the Corridor


New town Gurgaon is a big corridor and comprises of projects spread across 26 sectors. Therefore, a wide variety

of supply across different formats, sizes and price points is available. The dominant

budget segments are the Rs 60-80 lakh and Rs 80 lakh-Rs 1crore brackets with 33% and 30% share, respectively. The higher budget segment of Rs 1-1.4 crore contributes further 18% supply. The average per sq ft rate in

the corridor is under Rs 5,000 per sq ft. The higher acquisition cost is because the average size of apartments is on the higher side. This increases the overall purchase cost. Another indication of larger sized apartments




Highway Authority of India (NHAI). This is expected to speed up clearance of pending issues. NHAI is in the process of undertaking a Detailed Project Report (DPR) of the expressway. However, the timelines for actual process of final notification and takeover by NHAI are not clear at present.

b) HUDA is planning to make 13.5 km stretch of Dwarka Expressway operational by August 2016. This stretch is free of any litigation and most of the work has been completed. It will connect to NH-8 at Kherki Dhaula through an underpass or a flyover. This will provide the much required connectivity between sectors and other areas of Gurgaon through NH-8 as well as the existing access roads.

c) A Central Peripheral Road (CPR) will connect NPR with SPR. Land acquisition for implementing this project is under progress.

d) The Haryana Urban Development Authority (HUDA) had reached a settlement with residents in New Palam Vihar and Kheri Dhaula whose homes were to be acquired for implementation of the NPR. The litigation had been holding up road construction activity in Sector 110 towards Delhi and Kherki Dhaula

near NH-8. As part of the settlement plan, HUDA will allot alternate plots to around 700 families in Sectors 37C and 110A. However, this process has not yet been completed due to difference of opinion between litigants and HUDA on various aspects of the land allotment plan. Consequently, construction activity on the incomplete stretches has not yet started.

e) The final 1.3 km stretch of the Dwarka Expressway which connects to Delhi actually falls in Delhi and development here is the responsibility of the Delhi Development Authority (DDA). However, DDA has not yet acquired land for implementing this stretch of the road. No clear timelines are available on when this will be completed. Therefore, even if HUDA completes its part of the Dwarka Expressway, connectivity to Delhi might still not be available.

f) The Railway-Over-Bridge (ROB) on the Delhi-Rewari Line is yet to be completed. As the ROB ends towards Sector 99, a factory exists in the alignment of NPR. This factory is yet to be removed for work to be completed.

g) There are other flyovers planned at some critical junctions along the expressway but

their development timelines are not clear.

Outlook: New Town Gurgaon offers a relatively less expensive residential option to consumers along with integrated development of commercial and retail segments. The biggest strength of this corridor is that it does not rely on the Dwarka Expressway becoming operational for beginning habitation in the projects. Dwarka Expressway becoming operational will add to the convenience of the consumers.

Accessibility is an issue with additional cost having to be incurred by way of toll plaza at Kherki Dhaula. However, there are discussions to remove the toll plaza or remove the need to pay toll by residents in the area.

From a price perspective, this is a buyer’s market. There is over-supply in the market and transactions have been slow. In such a scenario, a buyer can negotiate good discounts from the seller, bth in the primary as well secondary markets.

In terms of development, the corridor will take 3-4 years to evolve into a mature residential hub.


Sectors which have scored high on consumer preference in terms of rental demand are those which have already

seen habitation. That is why the top 5 sectors

account for 71% share of rental demand. Many buyers have taken possession of their homes and are living in these sectors. These sectors also have access roads which connects them

with National Highway-8 (NH-8) and through it with other parts of Gurgaon as well as office hubs. The sectors lack in support infrastructure but make up for that by way of low rentals.

dominating the supply is the fact that 56% apartments are in the 3BHK format, with another 15% in the 4BHK & above category. Only 28% supply is in the 2BHK format, while 64% of 3BHK units are in the 1600-2000 sq ft range while 82% of 4BHK & above format is in the 2200 sq ft to over 2,600 sq ft range. As opposed to this, bulk of the 2BHK supply is in the 1000-1200 sq ft range.

The top 5 sectors by supply account for 54% as development activity is not even across the corridor. The price is also not uniform across the sectors and depends upon the relative location of the sector in the corridor. Buyers have a choice between under-construction and ready-to-move-in properties.


1 BHK 14-40 550-700

2 BHK 35-80 1000-1500

3 BHK 58-150 1300-2500

4 BHK and Above 85-225 1900-3800








1 BHK 1% 0%

2 BHK 28% 25%

3 BHK 56% 60%

4 and Above 15% 15%


Consumer preference by sectors for home purchase follows almost the same pattern as the home renting scenario.

There are only few minor variations because unlike rental housing where consumers will

go only for sectors with ready-to-occupy properties, home purchase can happen for under-construction projects as well. However, consumers continue to prefer sectors which have seen some habitation and have existing

access roads. Within these sectors, buyers can choose between ready and under-construction properties. Sectors with relatively low capital value feature in buyer preference but with low share of demand.

Consumers prefer the 3BHK format in the corridor. About 56% consumers are looking for 3BHK format in the

Rs 60 lakh-Rs 1crore bracket.

The most preferred configurations in the corridor is the 3BHK category in terms of demand and the 2BHK is the second most

preferred format with bulk (28%) of the demand in the Rs 40-60 lakh segment. The demand distribution for 1BHK and 4BHK is less as compared to 2BHK and 3BHK in this corridor.

In fact, the rental options are avialble mostly in the 2BHK and 3BHK category.



-2% -3%


In line with general market trend in Gurgaon, the average capital value in New Town Gurgaon corridor has seen a decline over last

5 quarters. The decline in overall price level is due to various factors.

Gurgaon real estate market has historically witnessed strong investor participation. This segment is no longer active with many investors trying to exit by offering properties at discounted rates.

This is one the reasons for price decline. Other is that end-user has been vary because of infrastructure issues which impact liveability. Sales have been down and incentives by way of cash discounts or attractive payment schemes have been offered by developers to attract buyers.




The quarterly price drop in the sectors with highest demand mirrors the general trend in the corridor and the Gurgaon market. These sectors account for most of the development in the corridor. In

addition, many end-users have already started living in some of the apartment projects.

There is unsold inventory in the market as well as considerable supply in re-sale market. Price drop can be on account for existing owners/investors offering discount to exit their investments.

These discounts are more likely to happen for under-construction properties as buyers prefer ready-to-move-in options to guard against development risks. This way they don’t have to pay EMI as well as rent which adds to financial burdenFig 8: Price changes in top sectors by consumer demand

Master Plan

The zone comprises of residential, commercial and institutional sectors. Except for Sectors 87, 88 and 89B, all

others are residential in nature. While Sectors 87 and 89B are public and semi-public in nature, Sector 88 is a commercial sector.

A commercial belt runs along the Dwarka Expressway in the corridor. A similar commercial belt exists between NH-8 and Sectors 81A, 82A and 83. A 75-meter wide road with a 60-meter wide multi-utility corridor on one side is planned which will connect part of the corridor to IMT Manesar.

This road will further connect to the Southern Peripheral Road through the proposed Central Peripheral Road.





Infrastructure UpdatesDwarka Expressway

The Ministry for Road Transport, Highways and Shipping has recently announced ‘in principle’ the granting of National Highway status to NPR

NHAI is in the process of undertaking a Detailed Project Report (DPR) of the expressway.

Receipt of National Highway status should help to expedite the completion of the expressway.

Infrastructure Development

In case of Sectors 81 to 95, HUDA is in the process of land acquisition for implementing infrastructure like water, sewerage, sector

roads etc. It had fixed the compensation amount for land acquisition in November 2015.

For Sectors 68-80 (of which 76-80 fall in the corridor), water supply network is likely to be implemented by the mid of next year.

Is New Gurgaon the new investment hot spot?

New Gurgaon comprises the newly developed sectors. It is well connected with three major highways, which are National Highway 8 (NH8), Kundli–Manesar–Palwal Expressway and Dwarka-Gurgaon Expressway. The workforce of Manesar and Gurgaon are eyeing at the new developing sectors. The three main corridors NH-8, Dwarka-Gurgaon Road (Northern Peripheral Road) and Gurgaon-Sohna Road (Southern Peripheral Road) connect Gurgaon with other parts of NCR. This indicates that the area is equipped in terms of physical infrastructure. New Gurgaon posses like schools, shopping marts, restaurants and hospitals which make it a well attributed locality.


NH8 - A viable investment corridor

NH-8 covers a stretch of 15km through Haryana and presents multiple options for investors in search of early-bird investment opportunities. This location holds great investment potential due to the enhanced connectivity that NH-8 provides to Manesar and Dwarka. As prices soar in new locations of Gurgaon like Dwarka-Gurgaon Expressway, Golf Course Extension Road, and Main Gurgaon Sohna Road buyers have started looking at these alternative locations. Delhi-Mumbai Industrial Corridor, which lies on NH-8, is one of the prime factors helping attract buyers and investors to this region. The government of India, in collaboration with the Japanese government, is developing the project.


New Gurgaon holds great promise

One of the key attributes of New Gurgaon is its connectivity with Delhi through the expressway, the proposed Metro link and bus services. It is also well connected through the expressway to Neemrana, which includes a 1,200-acre Japanese zone, and to Jaipur. It has emerged as one of the favourite destinations for real estate development in the NCR after the toll for commuters between Delhi and Gurgaon was discontinued and traffic became smoother on NH-8.The master plan of Gurgaon has planned the physical infrastructure comprising roads, power, sewage disposal mechanism, sanitation and water supply well. Social infrastructure comprising schools, colleges, malls and entertainment avenues have been planned.


Godrej sells over 200 flats in 3 weeks

Godrej Properties Ltd, the real estate development arm of the Godrej Group, announced that it has sold over 200 apartments, with an area over 400,000 sq. ft. in Sector 89A/88A of Gurgaon. Spread over 9 acres, Godrej Icon consists of 9 towers including a 32 storey Iconic tower. Godrej Icon will offer various amenities including a modern 17,000 sq. ft. club houses and infinity pool, 130 feet high skywalk, services by Club Concierge, Four Fountains Spa and Holyfield Gyms.


IN NEWS

Corridor Description and RatingAreas Included: Sectors Sector 68, 69, 70, 70A, 71, 72, 73


S O U T H E R N P E R I P H E R A L R O A D

Introduction

As per Gurgaon Manesar Urban Complex (GMUC) 2031 Master Plan, the Southern Peripheral Road (SPR) runs from NH-8 (near Kherki Dhaula), intersects Sohna Road at Badshahpur Chowk and continues further to cover what is generally known as the Golf Course Extension Road. This entire stretch is known as SPR and it provides connectivity to NH-8 near Kherki Dhaula on the western side and Faridabad Road on the eastern side.

SPR corridor refers to sectors along and off its stretch from NH-8 to its intersection with Sohna Road at Badshahpur Chowk. It consists of a mix of residential, commercial, industrial and institutional sectors. It is the smallest of all corridors in Gurgaon and consists of 11 sectors (Sectors 68, 69, 70, 70A, 71, 72, 73, 74, 74A, 75 and 75A).

Development in the corridor is the westward expansion along the Sohna Road stretch in Gurgaon.

Master Plan

The sectors in the corridor represent a mix of residential, commercial, public & semi-public and industrial sectors. The residential segment is the dominant category with maximum land use reserved for this segment.

Along with a commercial office space belt between Sectors 71, 73 and SPR, Sectors 74A and 75A are earmarked for commercial development wherein a few corporate office complexes are already operational. Sector 74 is industrial in nature and already has some industrial units which have been operational for many years. The presence of this small industrial belt is unlikely to have any negative impact on the corridor.

Sector 75 is reserved for public & semi-public use which comprises of schools, hospitals, cultural centres and government offices/institutions.

The Master Plan shows the metro route planned along the alignment of SPR. But timelines for its implementation are not clear at present.

Southern Peripheral Road

SPR is planned to be 90 meter wide with a 30-meter green belt on either side of the road. Except for a <200 meter patch which is under litigation towards Badshahpur Chowk, most of the road is complete.

HUDA is working towards resettlement of people affected by the SPR alignment by offering them alternate plots. However, the timelines for this settlement between litigants and HUDA and completion of work on SPR are not yet clear.

Infrastructure

In terms of infrastructure, Haryana Urban Development Authority (HUDA) is in the process of laying water, sewerage, storm water drains, electricity and sector roads in the corridor. Part of the work has been completed and the balance is expected to be complete by next year. Completion of the infrastructure projects in some sectors of the corridor is stuck because of land acquisition and land encroachment issues.

For the social infrastructure, residents in the corridor have to rely on the facilities that is existing along Sohna Road and other parts of Gurgaon. These facilities lie within a 5-km radius from all the residential sectors in the corridor. There are other types of infrastructure available in the corridor as well.

New Development Policies & Impact on SPR

The Haryana Government has introduced two new policies which will impact the real estate sector in terms of supply and price levels. These policies are:

a) New Integrated Licensing Policy-2015 (NILP-2015): Under NILP-2015, the minimum area for developing a residential plotted colony has been reduced from 100 acre to 25 acre. Earlier the residential development was restricted to 20% of the net planned area of a sector and the balance land remained unused. Under NILP-2015, licenses will be granted for area beyond 20% allowed in each sector for Group Housing. Land which was hitherto lying unused, will become available for developing residential colonies.

This means an additional supply in the form of residential plots and Group Housing will enter the market in due course of time. This will help to keep the land value and price of end-products at a low level. The overall price level in the market remained stable as more land becomes available through this policy.

b) Transit Orient Development (TOD) Policy: The State government has come out with the Transit Orient Development Policy which aims to encourage commercial & residential development along Mass Rapid Transit System (MRTS) Corridor. Under the policy, areas which fall under certain distance on either side of the MRTS Corridor will be eligible for increased Floor Area Ratio (FAR). This will be available even if applicable FAR as per original development norm for the area has been exhausted.

SPR has a Metro Corridor planned along its alignment. The area on either side of the expressway will be eligible for


About the Corridor


Southern Peripheral Road (SPR) is a relatively small corridor and consists of seven residential sectors. There are few

other sectors which have different land use. SPR is an expensive corridor with average

rate higher than Rs 6,000 per sqft. High rate coupled with apartments with large area translates into high acquisition cost to consumers. The dominant budget group in the corridor is Rs 80 Lakh-Rs 1.2 Crore bracket.

Together, these budget groups account for 47% of supply in the corridor. On the lower side, Rs 60-80 Lakh budget bracket also has 13% share of the supply. Rs 20-60 Lakh segment together account for less than 10%




higher development. This will put more residential and commercial development in the market.

As these policies become operational, the increased supply under the two new policies will add to more supply in the market and this in turn, is likely to keep prices at stable levels. Presently, no licenses have been given under these policies.

Present Status

Many developers have launched projects in the corridor which are in various stages of construction. These includes premium apartments, residential plots and villa projects as well as more general apartment projects. Some projects have received the Occupancy Certificate (OC) and have handed over possession to buyers.

While the price range in the corridor in the re-sale segment varies from Rs 4,000

– 7,500 per sq ft, the average price level is Rs 6,200 per sq ft. The 3BHK segment is the dominant format followed by 2BHK and 4BHK units.

The corridor currently suffers some teething issues like last mile connectivity and infrastructure shortfall. The access to various residential sectors of the corridor is through existing village roads or a combination of the completed stretch of SPR and village/dirt roads. Residents living in projects which have been handed over to buyers have to either walk to the nearest public transport hub at Badshahpur Chowk or use private vehicles.

As HUDA is still in the process of laying infrastructure in the corridor, some projects are relying on power through generator sets. Provision for water is through bore-wells as well as tankers.

With HUDA expediting the process of

laying the infrastructure, these issues are expected to resolve in another years’ time.

Outlook

The Southern Peripheral Road Corridor offers residential options to those looking to stay close to the established areas of Gurgaon like Sohna Road. It offers price advantage as the average price in the corridor is 20%-25% less than Sohna Road or Golf Course Extension Road.

While the corridor presently has teething infrastructure issues, these are much smaller in comparison to other major corridors like Dwarka Expressway. Given the much smaller extent of land related issues, the timelines required for their resolution and completion of outstanding infrastructure is likely to be much smaller.


The top preferred sectors from rental perspective are those which have projects where people have started living and

which have existing connectivity with Sohna

Road. Either through village roads or mix of part-SPR and part dirt road. Together, the four sectors mentioned account for 100% demand in the corridor. These have projects with

habitation as well as connectivity with Sohna Road. However, these sectors lack support infrastructure for which consumers have to rely on amenities along Sohna Road.

of the supply. Not surprisingly, 3 BHK is the dominant format in the corridor with half of the supply being in this format. The average saleable area of a 3 BHK apartment is 1,700 sq ft. 2 BHK segment comes second with 27% share with about 53% 2 BHK options in 1,000-1,400 sq ft range. Larger size 2BHK options generally have additional utility room

apart from the bedrooms. Apart from 2 and 3 BHK, the corridor also has sizeable (22%) supply in 4 BHK category. These are large sized apartments mostly in 2,000-2,600 sq ft or higher range. Some projects have already given possession in the corridor. There are under-construction as well ready to move options available here.


1 45-46 570-600

2 55-120 1000-1500

3 65-200 1380-2500

4 BHK and above 75-450 1650-3300









1 BHK 2% 0%

2 BHK 27% 66%

3 BHK 50% 17%

4 BHK and Above 22% 1%


Consumer preference by sectors for home purchase follows almost the same pattern as home renting scenario. There are only

few minor variations because unlike rental housing where consumers will go only for

sectors with ready-to-occupy properties, home purchase can happen for under-construction projects as well. This is how Sectors 70A, 73 and 68 come into picture. Even here, consumers continue to prefer sectors which

have seen some habitation and have existing access roads. Within these sectors, buyers can choose between ready and under-construction properties.

Consumers prefer 3BHK format in the corridor. About 58% of consumer looking for 3 BHK format are doing so in Rs 60

lakh to Rs 1 Crore bracket. A sizeable number (22%) are looking at 3 BHK options in Rs 1-1.2 Crore budget. 2 BHK is the second most preferred format where there is demand spread across Rs 20 Lakh to Rs 1.2 Crore price

bracket. This demand can be divided into two segments – 38% in Rs 40-80 Lakh segment and 34% in Rs 80 Lakh-Rs 1.2 Crore bracket. There is a small demand component in 1 BHK segment as well. This falls entirely in Rs 20-40 Lakh price bracket. For the same budget, choice between 2 and 3 BHK depends on location, amenities and quality perception.



0% 2%


Unlike other areas of Gurgaon, the price trend in the corridor has been positive. While the percentage change in prices

has been marginal, it has been positive. This marginal price increment is because corridor has continued to receive consumer interest.

The sector in these corridors are seen as extension of existing residential development on Sohna Road.

While corridor is yet to see support infrastructure development, resident in the corridor have access to amenities on Sohna Road. Overall market condition in Gurgaon is weak and this will continue to impact SPR corridor as well. Operationalization of SPR should add some impetus to demand and prices in the corridor. Fig 7: Historical Price changes of corridor


The prices trend in each quarter has been subdued both in terms of price increment and price decline. While some sectors have seen a continuous drop in values over last few quarters, the price level in

others have remained in a narrow range.

The drop in prices is due to investors looking to exit their investments. In a slow market scenario, may are willing to offer discounts over prevailing rates to attract buyers. Sectors where the rates have held or seen marginal increment are those where projects have been handed over to buyers. A ready-to-move project is preferred by consumers as they don’t have to deal with project delivery risk. Price in such projects has remained steady due to buyer interest.

Fig 8: Price changes in top sectors by consumer demand

Master Plan

The corridor has a mix of residential, commercial, public & semi-public and industrial sectors with the residential segment being the dominant category.

Sectors towards NH-8 like Sectors 74A and 75A are for commercial development wherein a few corporate office complexes are already operational.

Sector 74 is industrial in nature. Sector 75 is reserved for public & semi-public use which comprises of schools, hospitals, cultural centers and government offices/institutions. There is a commercial office space belt between residential Sectors 71 and 73 and SPR. The Master Plan shows the metro route alignment with SPR but timelines for its implementation are not clear at present.



RESIDENTIAL

COMMERCIAL

PUBLIC AND SEMI-PUBLIC

INDUSTRIAL

OPEN SPACES

Top reasons to invest on Southern Peripheral Road

Southern Peripheral Road (SPR) is attracting investors and end users due to it’s location. It is approximately 18 km long and 150-metres wide and is a part of New Gurgaon. The locality will connect Golf Course Extension to National Highway 8. This highway is expected to provide good connectivity to the major commercial sectors of Gurgaon, Delhi, and the adjoining areas, which has prompted market watchers to give it the thumbs up for its growth prospects. The existing Gurgaon-Faridabad Road is also directly linked to SPR. The National Highways Authority of India will maintain the six-lane SPR, as it has been declared a national highway. In addition, a Metro link is planned along the expressway in Phase II.


All hurdles in way of SPR cleared: Haryana PWD minister

All the hurdles in the way of South Peripheral Road have been cleared and soon construction will be resumed. The owners of houses and land coming in the way of SPR will be given alternate plots. Earlier, the foundation stones for projects worth Rs 3.09 cr had been laid that included roads interlinking localities, sewer line, water supply line and construction of overhead tanks. The state government would spend more money than it is going to spend on any of the smart cities in the state because Gurgaon contributes about 52- 56 percent revenue in the state coffers. If everything runs smoothly then there will be easy connectivity to this corridor in the near future.


NH-8 cloverleaf to connect peripheral roads, clear snarls

Huda is planning to build a cloverleaf intersection, around 1.5-2km before Kherki Daula toll plaza from the City Centre on NH-8, to ensure smooth traffic flow between Southern Peripheral Road (SPR), Central Peripheral Road (CPR) and NH-8, and reduce traffic on NH-8. The government has asked Huda to send it a formal application asking for permission to build the intersection, along with a draft design of the cloverleaf. The construction of the SPR is nearing completion. It is already connected with NH-8. Land acquisition for CPR is in an advance stage. This has necessitated the construction of an intersection to avoid traffic jams on NH-8, once SPR and CPR get operational. The NPR, which is also expected to be completed by this year, will also contribute to traffic on CPR.


Govt’s Master Plan likely to boost Gurgaon’s realty market

The new Master Plan-2031 has mainly focused on three different issues: non-grant of licenses on the certain land patches in Gurgaon-Manesar Urban Complex (GMUC), de-freezing of the SEZ zone, and relaxation for development of TP (town planning) scheme in Sector 16, Gurgaon. According to the new master plan, the land reserved for special economic zones has been annulled and this land will now be allotted to builders to make houses, malls, hotels and office complexes. According to the new master plan, the residential areas proposed would be developed along the neighborhood concept and emphasis has been put on developing infrastructure to keep pace with the explosive growth of the city.


IN NEWS

Infrastructure Updates


Southern Peripheral Road

Haryana Urban Development Authority (HUDA) is working out a plan for settlement of litigants whose land is to be acquired for completion of about 200 meter stretch of SPR. Once this settlement is done, work is expected to start on completing the unfinished portion.

Infrastructure Development

Haryana Urban Development Authority (HUDA) is in the process of completing infrastructures like water connectivity and sewerage in the corridor. There are land acquisition issues holding up infrastructure work and these are likely to sort out soon. Most of the

infrastructure related work is expected to be completed before the end of this year with balance work to be completed by mid of next year. Due to infrastructure development, there is excellent connectivity to many commercial hubs, which is the main reason for growth of the corridor.

Main Roads

Delhi Metro (Operational)

Delhi Metro (Under Construction)

Corridor Boundary

1. Mahamaya Flyover

2. Amity University

3. GIP

4. Noida City Centre Metro Station

5. Kalkaji

6. Okhla

7. Akshardham Temple

8. India Gate

9. Connaught Place

Corridor Description and RatingAreas Included: Sectors 82, 86, 88, 93, 93A, 100, 104, 105, 106, 107, 108, 110, 124, 125, 128, 129, 131, 132, 133, 134, 135, 137, 138, 140, 142, 143, 143B, 144, 150, 151, 153, 154, 162, 165, 167 and 168

Fig 1: Map of corridor

N O I D A E X P R E S S W AY



The corridor offers a significantly wide variety of price ranges, giving buyers plenty of options. Noteworthy is the fact

that more than 50% of the supply is priced between Rs 40-80 lakh. Over one fourth of

the supply is priced Rs 1 crore and above and is located near the start of the corridor, closer to Delhi. Most of what is available in the corridor is multi-storey apartments by reputed builders. Of this, mostly 2 and

3BHK apartments are available although there is sizeable supply of apartments with 4 bedrooms and above also. Very less amount of supply is available in the 1BHK type category. The corridor has been active for over a decade

About the CorridorAdvantage Noida: As one of the few planned Tier-I cities of India, Noida has grown well in the past two decades. It made true the dreams of lakhs of Delhiites, who wished to own a home but could not afford the sky-high prices and had to grapple with property transfer complexities. The well-planned Noida-Greater Noida Expressway Corridor provides plenty of land for development of offices, malls, schools, hospitals and parks. The city’s Master Plan ensured that almost half the corridor’s development is commercial or public utility (schools, hospitals, etc.) in nature.

Current Development: The corridor provides a host of infrastructure facilities, including Delhi Metro and the Noida-Greater Noida Expressway. While the metro has eased access to Noida, the expressway has become the lifeline of the city’s development. Apart from providing homes for the middle class, the corridor has also offered value-for-money commercial options to companies such as HCL, Cognizant, KPMG and Samsung

Upcoming Infrastructure: The upcoming

Metro will traverse the entire length of Noida within a year. One line will come directly from Delhi’s Outer Ring Road, catering to the northern sectors of the corridor. The second line will go towards Greater Noida, catering to sectors on the corridor’s other end.

Issues within the Corridor: The corridor still faces basic issues like some of the internal sector roads are yet to get street lights. With limited number of markets, residents drive to the Sector 18 market to shop. Moreover, few underpasses on the Expressway mean easy mobility is impeded. Builders have delayed a significant number of projects too. There are also a limited number of hospitals and schools catering to the middle class here.

Residential Landscape: As the corridor developed in phases, some sectors developed more than a decade ago, emerging as some of the city’s most premium localities. These include Sectors 44, 47, 93A, 99 and 100, which have plush bungalows and global-standard schools. The nearby sectors also benefited from it. While Sectors 44, 46, 47, 91, 92, 93A, 93B,

99, 100, 104 and 137 are mostly inhabited, other sectors adjacent to the Expressway will mostly be inhabited within the next 2-4 years. Sectors near the Expressway’s end and towards Greater Noida, such as Sectors 143, 144, 151, 152 and 168, will take some time before their social infrastructure develops. Proximity to the upcoming Metro and the developed areas of Greater Noida with many educational and commercial developments, will make them more habitable in 4-5 years.

Current Development Status: Close scrutiny of various projects reveals that almost all have completed more than 80% construction. For home buyers, this means that – as long as the developer has not stopped construction – the project will be delivered within the next 6 to 12 months.

Pricing on the Corridor: The Corridor has less expensive alternatives than those in Delhi and Gurgaon. The luxury apartments are available in the Rs 10,000-15,000 per sq ft range, while cheaper alternatives are available for as low as Rs 3,000 per sq ft.




The highest rental demand is being witnessed in Sector 137, which houses the metro station for the upcoming metro

and is expected to provide lots of benefits to residents. The sector also has a significant

number of ready-to-move-in properties. All the top sectors in the graph have at least one of the three advantages-proximity to Delhi, Noida Expressway or to the upcoming metro line. The presence of a number of offices here

has also helped the corridor in attracting buyers. The corridor has displayed slightly lower rental yields in the range of 2.5% to 3.2%, lowering the returns for buyers who are looking to rent out property post buying.

and as of now more than 60% of the listed properties are ready for possession. The under-construction projects are also mostly in the final stages of construction, although falling demand in the market and lack of money has led developers to stop construction on a number of these projects.

The corridor provides a wide range of choices

for each bedroom configuration with prices varying along the length of the corridor, falling as one moves south on it. The buyers are also showing interests here. While the range of apartment sizes is rather large, the majority of configurations of 1, 2, 3 and 4BHK units is around 700 sq ft, 1000 sq ft, 1650 sq ft and 3000 sq ft, respectively.


1 BHK 20-45 530-760

2 BHK 35-75 910-1,250

3 BHK 50-150 1,260-2,070

4 and Above 100-340 2,180-3,670









1 BHK 2% 1%

2 BHK 34% 39%

3 BHK 51% 53%

4 and Above 13% 8%


The home buying tendency follows closelywith the renting options available onthe corridor as all the localities

whichhave high rental demand in this corridor

will give better returns to owners and hence more people will be looking to buy properties in these localities. The rental accomodation in this corridor is quite reasonable and affordable

too. Consequently, eight out of the top ten localities by consumer searches for buying a house are in the top ten localities by consumer searches for renting in a house.

Given the relatively prime location of the corridor, there are very few units available in the 1 BHK category and the

demand for these is also very low. Most of the demand in the corridor is for 3 BHK units which have an average area of 1,650 sqft and constitute more than half of both the consumer buying and renting-in searches,

followed by 2 BHKs, which accounts for a third of the buying demand and almost 40% of the renting-demand is in terms of searches. The demand for 4 BHKs and above in the corridor is relatively less in terms of buying and is even lesser for renting-in. Moreover, the corridor is preferred by the home buyers both for buying and renting purposes.



-1% -1%


The prices in the Noida Expressway have been slowly declining due to lack of sale transaction. Although the corridor

has more or less arrested the fall in prices by reducing the supply in the corridor. Overall, the prices in the corridor remained stable between April 2015 and September 2015, before falling by 1% over the next six months. Overall, the prices are expected to remain stable for the next 1 year, before improving post completion of the Noida-Greater Noida metro line.




Price movement for top localities by Consumer Preference

Of the top corridors by demand, sector 128 and sector 45, which are located on the start of the corridor and are

closer to Delhi border, witnessed a positive change in prices over the last quarter. Sector 134, which is also near the start of the corridor, witnessed a positive price change. On the other hand, the remaining two sectors which are further down the corridor witnessed negative change in the prices.

Fig 8: Price changes in top localities by consumer demand

Master Plan

The Corridor consists of a healthy mix of residential, commercial and institutional sectors with a few industrial sectors as

well in the eastern periphery. Most of the industries are cutting edge and should not affect the aesthetics of the corridor. Overall, development in the corridor is mostly in the residential segment with areas closer to Delhi already developed. These include premium residential areas like Sector 44, commercial & mixed-use (Sectors 94, 96, 97, 98, 105, 108 and 124) and institutional (Sectors 125, 126 and 127) in nature. Many sectors have villages located within them, as marked in the map, and will impact the overall aesthetics and general upkeep of the area.



Infrastructure UpdatesNoida Greater Noida Metro

Particulars RemarksSectors 50, 51, 78, 101, 81, 83, 85, 137, 142, 143, 144, 147, 153 & 149.

Operational date June 2017

Construction completed (till Dec 2015) 15%

Length 28.8 Kms

Total Stations 22

While the Noida-Greater Noida Expressway provides great connectivity to the western side of Noida, the

inner sectors rely heavily on internal roads to manage connectivity. All this will change with the construction of the Noida Metro which will connect Noida City Centre to Greater Noida, going through sectors 50, 51, 78, 81, 83, 85, 101, 137, 142, 143, 144, 147, 149 and 153.The 28.8-km metro line is on an elevated track and is part of the Phase-IV of the Delhi Metro, providing connectivity to Delhi and Gurgaon.

Faridabad-Noida-Ghaziabad (FNG) expressway

The expressway has been long in planning and progress has been stagnant for some time due to land acquisition hurdles. Post

completion, it will provide direct connectivity between the east side of the cities located in East NCR namely Faridabad-Noida-Ghaziabad. In August, the Central Government indicated to give the Faridabad-Noida-Ghaziabad (FNG) Expressway the status of a National Highway and extend it till Sohna. As of now, the expected operational date for the completion of the expressway is far in future and should not much affect the present buying decision.


Alignment (Uttar Pradesh) 19.9km falls in Noida-Greater Noida, 8km in Ghaziabad, while the remaining 28.1km is in Faridabad

Alignment (Noida) East face of Noida

Start of work 2008

Status Awaiting the Union Cabinet’s approval

Road status 56 Km stretch to be converted into a National Highway

Construction completed (till Dec 2015) 54% ( stretch falling in Noida)

Table 3: Faridabad-Noida-Ghaziabad (FNG) expressway details

Table 3: Noida greater Noida Metro details

Antriksh Grand View launched in Noida Expressway

Antriksh India has launched an incredible residential project by the name of Antriksh Grand View, which is being developed at Sector 150, Noida Expressway. The project will offer 4 BHK luxury apartments in two unit plans 1860 sq. ft. and 2250 sq. ft. The project is being developed in an area of 5 acres and will house 4 towers with around 288 units on offer. Each tower will comprise of 18 floors and house 72 units, making 4 units on each floor.


Noida Expressway: Market primed for express growth

Noida Expressway has emerged as one of the prime spots for investment and end use owing to its close proximity to Delhi The commercial and retail real estate will play only supplementary role to the dominant residential market here. The whole belt along the expressway has seen a sea change with world-class facilities and infrastructure sprouting all over the place, and connectivity getting a leg up with the 165km-long Yamuna Expressway (Delhi to Agra) becoming operational.


Free Wi-Fi on Noida expressway

Noida authority has come out with great news for the daily commuters of Noida expressway. The authority recently announced that commuters along the Noida – Greater Noida expressway will soon be able to enjoy free Wi – Fi connectivity. Wi-Fi access will be provided on the long stretch starting from the expressway entry near Mahamaya flyover, Amity Crossing and Pari Chowk. Further, the infrastructure installed for the Intelligent Traffic Management System will be used to roll out the public Wi-Fi on the 23.6km stretch.


Noida Expressway is a major residential destination

In recent years, Noida-Greater Noida Expressway has emerged as a major residential destination. The biggest advantage of living along this expressway is that you have quick access to South Delhi. The most important infrastructure development that will have a big impact on the lives of people living in this area is the expansion of Metro network from City Centre in Noida to Sector 62, Sector 71, and then to Greater Noida.


IN NEWS

Corridor Description and RatingAreas Included: Noida Extension areas including gaur city, Knowledge Park 5, Sector 1, Sector 3, Sector 2, Sector 4, Amrapali Dream Valley, Vaid-pura, Patwari, and Shahberi


N O I D A E X T E N S I O N



The corridor provides a very narrow range of properties given that it is being marketed as a cheaper alternative of

Noida. More than half the properties in the corridor are priced under Rs 20 lakh, a feat

few other emerging corridors can match. The properties available in this corridor are quite affordable and home buyers can plan their investment here. Though this range of properties are mostly located in the inner

areas of the corridor and away from the Noida boundary. The next dominant budget segment is between Rs 20-40 lakh, accounting for one third of the corridor’s supply. Properties costing more than Rs 60 lakh account for just

About the CorridorAn Overview: Greater Noida is the creation of the state government, which tried to replicate the model of Noida, hoping for development of the region the same way it happened for Noida. Greater Noida Development Authority has acquired significant agricultural land the same way it did in Noida and provided zones for residential and commercial developments. Most of the development is fairly recent and a significant portion of the social infrastructure is yet to come. The area lacks in key aspects of sustainable living and any buying decision in the corridor must be made with prudence and due diligence.

Current Development: Noida Extension has primarily witnessed residential development while commercial developments are few and far between. Most residential developments is of multi-storey types with almost no plotted or bungalow developments. The primary driver for real estate in the area is affordable housing options, which are at least Rs 1,000-3,000 per sq ft cheaper than those in the adjacent sectors of Noida. Along with Pan-NCR

developers, a number of local developers also have their projects here, which are mostly small-scale. While they have been able to keep the prices low, most of them are not providing facilities like common retail area, club and security.

Connectivity and Infrastructure: Faridabad-Noida-Ghaziabad (FNG) Expressway has been in the news for quite some, though the full operation of the corridor is still not visible in the near future. The other major infrastructure is the under-construction metro line from Noida City Centre to Sector 51, its distance from the beginning of Noida Extension around 7-km. At present, the Noida-Greater Noida Link Road is the only major road providing connectivity to the region and will not suffice the needs of the corridor once it develops.

Issues within the corridor: Noida Extension does not have a self-sustained environment and severely lacks in basic social infrastructure. The corridor has witnessed almost negligible office space development and most nearby

offices are located in Noida. The corridor has been able to sell houses till now only on the back of cheaper prices and promises of the future. The corridor is yet to witness development of malls and markets like the Sector 18 market of Noida. Other key parameters lacking in the region are greenery and street lights on the sector roads and poor quality of the sector roads. There are a sizable number of factories in Sectors 5-9, affecting the aesthetics of the area.

Current Status: Unlike Noida, where construction activity has almost come to a standstill in the last couple of years, Noida Extension continues to witness the same albeit at a slower pace. Buying activity in the corridor has kept the construction going. Noida Extension has been one of the few bright spots in terms of selling but this has majorly been the result of prevalent cheap prices. A distance of mere 15-km from Delhi’s boundary has also been a pull factor. Overall, the mass habitation of the corridor will happen only after the development of these basic infrastructure.




The highest rental demand is being witnessed in Sector 1, which stands on top on account of it having a significant

ready supply. On second position is Sector 4,

which is the closest to Noida on the corridor. This benefits the sector greatly, and has led to significant apartment development. The rental prices are quite reasonable here.

Although Knowledge Park-5 is at the farthest end of the corridor, but given that there is some commercial supply in that region, there is some demand for rented apartments.

14% of the total listings. Overall, the corridor is still in the nascent stages of development, with vast majority of properties still under construction. But, with the development of infratsrtucture, the corridor will witness real estate growth. Supply in the corridor is quite uniform in configuration and more than half the apartments here are 2BHK units.

The corridor provides a moderate range of choices for each bedroom configuration with prices varying along the length of the corridor, falling as one moves south-east on it. While the range of apartment sizes is rather large, majority of the configurations of 1, 2, 3 and 4BHK units are around 600 sq ft, 1000 sq ft, 1450 sq ft and 2100 sq ft, respectively.


1 BHK 13-22 550-610

2 BHK 20-50 850-1,150

3 BHK 37-60 1,200-1,620

4 and Above 55-90 1,700-2,350




Fig 5: Top localities by consumer for renting a house

Fig 6: Top 10 localities by consumer for buying a house




1 BHK 6% 2%

2 BHK 56% 66%

3 BHK 35% 27%

4 and Above 3% 4%


The home buying tendency follows closely the rent seeking tendency on the corridor. All localities which have high rental

demand will give better returns to owners

and hence, more people will be looking to buy in these localities. The average rental of this corridor is affordable. Consequently, the top localities by consumer searches for

buying a house are also in the top localities by consumer searches for renting a house. Most of the demand is concentrated in a few sectors of the corridor.

Almost half of the apartments are available here are in the 2BHK configuration and the same is reflected

in the demand for buying and renting in the area, each constituting more than half the total demand here. The demand distribution for buying is high in the 2BHK segment, which is 56% currently. However, the demand is also

on the higher side for 2BHK segment, which is 66%. Although demand for renting is more than demand for outright buying with respect to 1BHK category. Next in demand are 3BHK units, which account for more than one third of the buying demand and more than one fourth the renting demand.



-1% 1%


The pricing the Noida Extension corridor has been varying between -0.6% and 1.5% over the last 5

quarters, with price climbing for the first 3 quarters of this period, post which falling by 1% over the last quarter. Overall the prices today are 1 % more than what they were one year back.

The fall in prices in the last one quarter has been partly due to slowdown in sale transaction activity and partly due to launch of projects at slightly lower rates. Going forward, the prices will continue to remain stable for some time.




Price movement for top localities by Consumer Preference

The top areas by demand witnessed varying levels of price changes with two out of four top localities in the corridor witnessing increase in price while the remaining two

witnessing a reduction.

This is in spite of the fact that the overall price of corridor fell by a slight 0.3%. Going forward the prices of the localities are expected to witness mild price correction, before stabilising in the midterm (4 to 6 quarters).

Fig 8: Price changes in top localities by consumer demand

Master Plan

The Master Plan of the corridor has given a heavy tilt towards the residential sector. Almost all the land

at the start of the corridor is residential in nature. The area at the end of the corridor, starting with Knowledge Park is where most of the commercial land use is located. Given its distance from Noida,

this area has witnessed few commercial developments in the past five years and it will be some time before the area develops a strong commercial presence. The present Master Plan does not provide clear distinction to retail and institutional development, leading to non-quantifiable future development of these sectors.

Fig 9: Land use of various localities in the corridor

Why you should choose Noida Extension?

Noida Extension has various reasons to entice the homebuyers. The locality offers a plethora of residential housing options. It also offers good connectivity with National Highway 24, Greater Noida and Central Noida. Their residential projects come with amenities, which are sometimes unmatched when compared to the neighbouring areas. The social infrastructure consists of malls, commercial districts, retail stores and many others. Apart from this, schools and hospitals are also accessible within the townships. The proposed Metro link located close to the area will further ensure connectivity.


NCR builders claim to follow NGT orders

The National Green Tribunal have released the order in 2015 to NCR builders to immediately stop the construction of the projects in the specific stretch of areas in Noida Extension and Gurgaon that violated Ministry of Environment and Forest (MoEF) guidelines of 2010. The authority took the note of media reports on air pollution caused by building activities. The developers seemed to welcome the NGT guidelines and said that it has been a good move. The builders have also shown their concern over project delay, which has been bothering the consumers for quite some time.


New directive from SC on Greater Noida West

In the land-acquisition case pertaining to Greater Noida West (formerly Noida Extension) the Supreme Court has directed the farmers to file their counter affidavit within three weeks with regard to their objections to the compensation worked out between them, the developers and the Greater Noida Industrial

Developmemnt Authority (GNIDA). The protesting farmers are from villages like Patwari, Bisrakh, Khairpur, Roja, Itehda, Haibatpur, and Saini. According to the petitioner farmers, the authority has disbursed only the increased compensation, but is yet to provide farmers the benefits of abadi plots as well.


SC verdict on Noida land acquisition brings relief

The property owners and builders of Greater Noida/Noida Extension can heave a sigh of relief with the ruling of the Supreme Court. The apex court had earlier put a stay on the order by the Allahabad High Court on land acquisition in Greater Noida/Extension, wherein 10% of the developed land will be given to farmers. As per the verdict, around 64 per cent of enhancement of compensation will be given, i.e. from Rs 850 to 1400 per square yard and also 10 percent of the developed land will be given to farmers. The authorities in both Noida and Greater Noida challenged that judgment, with 850 petitions filed, while farmers groups filed 350 petitions.


Know all about buying a house in Delhi NCR

Delhi NCR offers wide range of projects to homebuyer. Nationally acclaimed developers have their projects spread across Faridabad, Noida Extension and Gurgaon. The localities are developing in terms of physical and social infrastructures. The property type available includes apartments and residential houses. There are 2 and 3BHK apartments which suits the pockets of home buyers. Various costs are incurred while buying a house. With prior scrutiny before buying, saves the consumer from disputes and litigations.


IN NEWS


Infrastructure UpdatesFaridabad-Noida-Ghaziabad (FNG) expressway


Alignment (Uttar Pradesh) 19.9km falls in Noida-Greater Noida, 8km in Ghaziabad, while the remaining 28.1km is in Faridabad

Alignment (Noida) East face of Noida

Start of work 2008

Status Awaiting the Union Cabinet’s approval

Road status 56 Km stretch to be converted into a National Highway

Construction completed (till Dec 2015) 54% ( stretch falling in Noida)

The expressway has been long in planning and progress has been stagnant for some time due to land acquisition hurdles. Post

completion, it will provide direct connectivity between the east side of the cities located in East NCR namely Faridabad-Noida-Ghaziabad.

In August, the Central Government indicated to give the Faridabad-Noida-Ghaziabad (FNG) Expressway the status of a National Highway and extend it till Sohna. As of now, the expected operational date for the completion of the expressway is far in future and should not much affect the present buying decision.

Table 3: Faridabad-Noida-Ghaziabad (FNG) Expressway details

DON’T SPECULATE! CALCULATE ACCURATE PROPERTY PRICE.

I N T R O D U C I N G

PropWorth

1.8 Cr

78 Lac

70 Lac

85 Lac

80 Lac

52 Lac 65 Lac

75 Lac

90 Lac

To know your PropWorth, give a missed call on 92060-72848

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PROPINDEX TEAMl Content & Research:

E Jayashree Kurup, Subodh Kumar, Rohit Vats, Devendra Lohmor, Bhawna Mongia, Namrata Ekka, Renu Arya, Preeti Sharma, Puneet Kukreja & Bikash Kumar

l Layout Design: Harsha Khattar

D I S C L A I M E R

Every effort has been made to make this Index as complete and as accurate as possible. MagicBricks accepts no responsibility for inaccuracies in the information/data contained in this book. It shall have neither liability nor responsibility to any person or entity with respect to any loss or damage

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FOREWORD - MagicBricksproperty.magicbricks.com/.../delhincr-jul-sep-2016.pdfFOREWORD Mild tapering of inflation and a normal monsoon finally paved the way for lowering of REPO rate

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