COMMONFLOOR INSIGHT ON BHIWADI FARIDABAD & GHAZIABAD 1 | P a g e Introduction Delhi - NCR (National Capital Region) metropolitan region amounts for about 46,208 sq. km area accommodating over 45 million people and is ranked as India’s largest and world’s second largest urban agglomeration after New York city. The region attracts huge in-migration volume and thus, creates a pressure on the land supply which is handled by NCR Planning Board (constituted by the govt. of India by NCR Planning Board Act, 1985). This board tries to focus on the development radially outwards towards other districts in neighbouring states thus, expanding land area of the NCR belt altogether. The NCR belt is further divided into four sub-constituents: 1. Haryana Sub-Region 2. Uttar Pradesh Sub-Region 3. Rajasthan Sub-Region and 4. Delhi region with a stable government at Centre, consumer sentiments are getting positive and there is an increase in the real estate activity. Reports suggest that there was a surge of almost 50 per cent in Private Equity funds in 2014 as compared to 2013 in the realty market of Delhi-NCR. NCR is experiencing a consistent residential demand owing to exorbitant prices in the National Capital. The growth of NCR belt brings fresh development opportunities to these new sub-regions which contain huge untapped residential market potential. This report gives an overview of the three prominent markets in NCR namely Bhiwadi, Faridabad and Ghaziabad. BHIWADI (Rajasthan) Bhiwadi, in Alwar district of Rajasthan, is located in close proximity to Manesar and is an emerging industrial and real estate hub adjoining Gurgaon (49 km away). The area has attracted both investors and buyers alike over the last few years. Major Growth Drivers The area is an important emerging industrial area with industries such as steel, furnace, electronics, engineering, textiles, pharmaceuticals, printing, cables, rolling mills, food processing. Tapukara Industrial Area, located on the Bhiwadi-Alwar Road, is one of the major attractions. A number of SEZs are coming up in and around Bhiwadi by RIICO and DMIC. The Union Budget 2014 further strengthened the prospects of this small town with major emphasis on the industrial corridors including Delhi- Mumbai Industrial Corridor (DMIC). Over 17,000 MNCs are expected to set their base here. Figure 1 Bhiwadi map Source: Real Insights by CommonFloor.com Proposal to enhance connectivity with Delhi & other NCR towns. Expected future connectivity via bullet train. Potential to be the No. 1 Industrial Area in Northern India. Alwar Bypass Road to be 6-lane. Infrastructure Projects: Connecting highways such as NH-8 (Delhi-Jaipur highway) and NH-71B are an added advantage. The proposed Neemrana Airport is also in close vicinity of Bhiwadi. 2 | P a g e According to Gurgaon-Manesar 2021 Master Plan, the proposed Kundli-Manesar-Palwal (KMP) Expressway will improve connectivity here in the future. Regional rapid transit system (RRTS) from Delhi to Alwar (180 km) is also proposed. As for social and physical infrastructure, Bhiwadi has most of the basic amenities like piped water (no water shortage), schools, transportation, hospitals, telecom networks, banks, etc. Affordable Prices: When compared to other areas of the NCR, the prices in Bhiwadi are still reasonable in the budget of Rs 18 lakh to Rs 50 lakh. Both, Bhiwadi and Dharuhera have emerged as credible alternative to Gurgaon in terms of affordable housing, industrial areas and real estate growth. On a long term perspective, one may expect at least 20 per cent returns year on year. But if one is looking to invest for a short period, then it is not advisable to consider it for investment. Challenges: Commercial real estate and quality social infrastructure including big branded shopping malls are yet to catch up. There is lack of high income service industries such as IT/ITeS, and other such services. To conclude, with increasing buyer interests, there has been a decent developer activity in the region offering basic amenities and facilities and, thus, bringing up the livability quotient of the area. It is a good blue collar destination and long term bet. SWOT Analysis Figure 2 Bhiwadi: SWOT analysis Source: Real Insights by CommonFloor.com Residential Snapshot: CommonFloor Data As per CommonFloor data, property prices in Bhiwadi witnessed correction to the tune of 10-15 per cent in 2014 as compared to 2013. The drop in prices was the effect of the overall slowdown. The social infrastructure is also yet to develop and the liveability quotient currently is not so good. Further, maximum real estate activity was witnessed in Alwar Bypass Road, Sector 106 and Tapukara. Interestingly, as compared to previous year, there was some real estate activity seen in newer markets such as Sectors 4, 41, 69, 106, 134 and Chopanki in 2014. 3 | P a g e According to CommonFloor’s report titled “Real Insights 2014: Annual Realty Report,” in Bhiwadi, Alwar Bypass Road, Sector 106, Tapukara and Chopanki were the top scorers for the top 10 markets based on both new projects and units launch. There was about 20 per cent decline in the supply of ready-to-move-in properties in 2014 as against the previous year. Several residential projects launched in previous years are still under construction and slated to be completed over the next 2 years. As per data, out of the total new launches in Bhiwadi in the years 2013 and 2014, Alwar Bypass Road alone witnessed over 75 per cent residential supply. Out of this new supply, almost 50 per cent comprised of 2BHKs, followed by 23 per cent in 3BHK configurations. The price bracket for these properties was within the affordable range (less than Rs 40 lakhs). Bhiwadi vs Dharuhera: Which is better for investment? Price Bracket Gap Data suggests that Bhiwadi has multiple options in a wide price range of Rs 1,850-3,100 per sq. ft. While Dharuhera has essentially properties in the price bracket of Rs 2650 - 3,250. ROI Keeping in mind the proposed infra projects and future growth plans, one can expect decent price appreciation in Bhiwadi in a short to medium term. On the contrary, it will still take a while for development to actually become a reality in Dharuhera. Hence, if one is considering to invest here, it will take a long time to get decent returns. FARIDABAD With realistic property values, good connectivity coupled with upcoming infra upgrades, Faridabad is expected to be the next hotspot in NCR. One of the largest cities in Haryana, it is surrounded by Noida, Gurgaon, Greater Noida and Delhi. It enjoys connectivity to other cities such as Mathura, Palwal and Agra via NH-2. Greater Faridabad is a newly formed residential and industrial part of the city, and is being developed as a self-sustained sub-city, with malls, wide roads, tall buildings, commercial centres and educational institutions. There are plans to extend the Delhi metro to the city to ease travel between Faridabad and Delhi. Greater Faridabad (Sector 66-89) has immense potential for realty development. The average property values are in the range Figure 3 Faridabad map Source: Real Insights by CommonFloor.com of Rs 3,000-9,600 per sq. ft. When compared to Noida and Greater Noida, Greater Faridabad evolved as more affordable option with better facilities. Some of the prominent developers in the city are BPTP Group, Omaxe, Ashiana Housing, SRS Group, Emerald Home Developers, to name a few. Important areas: Neharpar (Greater Faridabad), Greenfield Colony, Charmwood Village, Suraj Kund. 4 | P a g e Infrastructure Impetus Faridabad is riding high on various infrastructure projects such as: Gurgaon-Faridabad Expressway: Reliance Infrastructure Limited (RInfra), part of Reliance Group, has commenced the operation of Gurgaon-Faridabad Toll Road Private Limited. The four laning of Gurgaon - Faridabad and two laning of Ballabhgarh - Sohna road have been completed and toll collections have been started. Faridabad-Noida-Ghaziabad: The construction of FNG Corridor is still under development while new proposals for adding construction of underpass costing Rs 30 crore on the corridor have been submitted to IIT-D for approval. Expressway Widening of Mathura Road into six lane: The project has been experiencing severe delays due to the environmental issues related to the tree felling in according to which the National Highway Authority of India has paid about Rs 1.2 crore to translocate around 1,200 trees. Expansion of Delhi Metro Rail: Now connected up to the tip of the Faridabad city till Badarpur Metro Station, further under the DMRC phase III this line is to be extended up to the central location in the City till YMCA chowk, Old Faridabad and targeted for completion by May 2015. Badarpur Flyover (Delhi-Faridabad Skyway): Delhi-Faridabad Elevated Highway has been inaugurated successfully by the then Chief Minister Smt. Shiela Dikshit in November, 2010. Increasing Commercial Growth: Faridabad has been recently witnessing a growth of commercial nodes attracting new office spaces especially at Neharpar and New Faridabad areas. Additionally, being a major industrial hub in the NCR region, the area witnesses a good amount of investor interest followed by home-buyers who predominantly belong to the workforce of these industrial setups. Challenges: Faridabad has been consistently one of the top cities in India recording high crime rates. The city falls in high flood prone zone repeatedly experiencing floods from river Yamuna. SWOT Analysis Figure 4 Faridabad SWOT analysis Source: Real Insights by CommonFloor.com 5 | P a g e Faridabad: Residential Snapshot According to CommonFloor’s report titled “Real Insights 2014: Annual Realty Report,” Faridabad witnessed only 5 per cent of the total new launch supply in entire NCR in 2014.