Delhi-NCR Property The Increasing Demand

The National Capital Region (NCR) is India’s largest & the world’s second largest accumulation region. It’s spread all over 18 states of India, where various real estate developers have planned residential, commercial & industrial projects. The Delhi – NCR has updated & still updating the status of huge development in the sector of real estate with numerous projects started in all parts of the region.

In the commercial sector, there has been some significant development. IT / ITES sector has been dominated performing with manufacturing & industrial sector rising in some areas as well. Gurgaon recently has acclaimed the status quo among people with good combination of corporate offices & IT. With these upcoming developments the buying & renting of office spaces rose to 11% because of IT / ITES. Thus the Private Equity investment is expected to increase by 50%.

Amongst NCR regions, Gurgaon & Noida always have been in demand in the residential markets, running with affordable pricing & package of product offerings available for buyers. Manny innumerable projects are developed keeping the demand of the region and people’s choice. Because of successful rise in the population, many useful projects have also been started by the government like the Metro Phase-3 which would connect all the routes joining from Delhi to Noida & Gurgaon. Further new projects have been finalized at Faridabad, Yamuna expressway, Manesar, etc. With improving connectivity, rising property prices & expanding cities buyers are looking to reside close to metro cities.

From an investment point of view, it makes more sense to opt only for highly developed areas in the current scenario. Larger investors ought to think about the domestic private equity money being raised, this has resulted various NRIs to come & invest in Indian market.

Then, there is the question of the state of the market. Not less than 80 per cent of the value of a REIT's asset is to be in completing properties. While it does bring down the risk, it is not as if there are many such properties at the moment. So will the REIT market be adequately deep, and can REITs be transformative? Prohibiting foreign investment in most completed assets will also hold REITs back. Overall, REITs are necessary. But whether they will be a game-changer is open to question.