Greater Noida emerging as a top destination for commercial and residential activities

By Dr Suvrokamal Dutta

Greater Noida has fast emerged as the favorite destination for commercial and residential activities. The well laid out sub-city has definite area earmarked for residential, institutional, entertainment, industrial and commercial purposes.

Greater Noida Industrial Development Authority (GNIDA) has contributed heavily to the development and fast growth of the sub-city. Plenty of multinationals and domestic companies are coming up every year. Authority has allocated adequate budget for number of developmental work to keep the city neat and clean.

But more development is needed especially in improving the power and water supply. “Undoubtedly, Greater Noida is facing acute power shortage. To meet the

Power demand we have set up a monitoring committee, which will provide recommendations to improve the power supply,” pointed out GNIDA official.

It is worthwhile remembering that Greater Noida requires 80 mw, but the sub city receives just 65 mw. GNIDA have asked Uttar Pradesh Power Corporation Limited to increase the power supply up to 70 mw.

“As far as continuous water supply is concerned, we are all ready committed to supply 85 cusecs of water from the River Ganges from the upper Ganga canal. For this an MoU has already been signed with the jal nigam,” said GNIDA official.

If experts are to be believed, the much-awaited projects international airport and Taj Express Way will contribute heavily to the sub city’s growth. As per the recent dialogue between Indian Prime Minister Manmohan Singh and Uttar Pradesh Chief Minister Mayawati, the national capital region will get another airport at Greater Noida. Four years back, 4000 hectares of land had already been earmarked for the proposed airport.

Also based on the satellite survey, civil aviation department had approved the technical norms. Proposed airport will directly be linked with 160 km long (Noida to Agra) six-lane Taj Express Way. It has come into the notice of The India Street that land acquisition for this is already under progress. The authority is waiting for ministry of civil aviation’s guidelines. They are hopeful that project should be completed within three years.

With airport and Taj Express Way, there is going to be lifestyle change in Greater Noida. As a matter of fact, the people from Delhi would prefer to shift and settle in Greater Noida, as the sub-city would provide better lifestyle along with ample job opportunities. No doubt, Greater Noida would soon become an industrial hub as lots of multinational companies and foreign investors are coming here.

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Nariman Point Real Estate Values Still Going Up

By Vipin Agnihotri

It was once the nerve centre of all corporate activity until it collapsed after the property market crash over a decade ago. But at this point of time, Nariman Point- the Mumbai’s first commercial business district is not only back on its feet, but its real estate seems to be once again booming.

When I visited Nariman Point yesterday, I realize that there is virtually no office space available here. It’s quite surprising because barely two years ago there was 25 percent vacancy in most of the buildings here.

“Between January and December 2006, property prices and rentals in Nariman Point have appreciated by 70 percent to 80 percent. There is no availability for large floor space offices since the last six months. Only a few small offices 500 to 2000 sq ft in size are available,” pointed out property consultant Kulshum Mustufa.

Few of the experts are expecting the all time high record of a Nariman Point property transaction to be broken in the coming months. It is worth mentioning in this regard that in October 1995, at the height of the then raging escalating property prices boom, the prime real estate of Nariman Point recorded two transactions at the rate of Rs 38,000 a sq ft in Maker Chambers.

It has come into the notice of The India Street that from Nariman Point to Malad and Powai, rental values have appreciated because of limited supply of office space. Theoretically speaking, space taken up by real estate funds, investment banks, insurance and corporate sectors has led to a significant drive for rental values for grade A quality space.

Prices in Nariman Point, with no new development, have sharpened 100 percent over 18 months. At present, lease rentals here are in the range of Rs 225 a sq ft to Rs 275 a sq ft. Point to be noted here is that at the beginning of the year it was around Rs 100 to Rs 250 a sq ft. Reclaimed from the sea in the 1970s Nariman Point was one of the most costly real estate enclaves in the world. During the property boom in the early 1990s, average property prices here were in the region of Rs 25,000 to Rs 30,000 a sq ft.

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Karnal Witnessing a Property Price Boom

By Dr Suvrokamal Dutta

The city of Karnal, located midway between Chandigarh and Delhi, is witnessing a boom in property prices, which by the way is far stronger than that seen in other towns of North India.

No doubt, Karnal’s strategic location is one of the reasons for its attraction to investors but you can’t overlook the abundance of good water and clean environs as well. Karnal is located on the bank of the river Yamuna. It has come into the notice of The India Street that the state government has big investment plans lined up for Karnal. The best part about Karnal is that despite being a historic city, Karnal is not over crowded.

The world-class broad highway connecting Delhi, with Karnal means that the national capital is very close to Karnal, which is another plus point for Karnal. If experts are to be believed, the Karnal bypass on the Delhi Chandigarh highway has further fuelled the property boom in the city. Big areas have been aesthetically developed by the state government in the territory opened up by this new road.

As a matter of fact, it is this supply of good property that is keeping the property boom from getting out of hand, making the present time a good point of entry for investors. Karnal city itself is quite attractive, being extremely well planned. The roads are broad and even the slip roads in the planned sectors are broader than many main roads in a city like Delhi.

In addition, there is plenty of greenery in Karnal with extensive parks having been created for the residents. Despite these inherent benefits, property in Karnal still remains affordable and even government officials and executives are buying property there for settling down after retirement.

It is the extension in the northern direction of Karnal, west of the highway going to Ambala that is emerging as the focus of attention for investors. This area is preferred because it is right opposite the well-known Oasis landmark on the National Highway and is a stone’s throw from the historic Karna lake and the golf course.

The pollution free environment has meant that many who would like a residence away from the hustle and bustle of Chandigarh or Delhi are making a beeline for the far less expensive Karnal, where facilities are available which ensure a lifestyle which would come only at astronomical prices in both Delhi or Chandigarh.

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Boom in the property market is not over-

By Vipin Agnihotri

In case if you believe the lay expert, the boom in the property market is over and the market is headed for a correction. On the other hand, if you are interested in the real picture, forget the lay expert and follow what business captains running more conventional corporate houses are planning.

It has come into the notice of The India Street that Godrej, Mahindra, Wadias of Bombay dyeing, Piramals, even the Birlas, all blue-blooded scions of business, are making a beeline for the property sector with aggressive plans.

The main reason behind this is that at the present juncture real estate in India is an Rs 300,00 crore per annum business, which is growing at a 20 percent per annum. “What is helping these corporates is the fact that a plenty of them have big land banks in cities like Mumbai,” pointed out Munaf Sarif, real estate expert.

The point to be noted here is that these lands were once acquired for industrial purposes. With industries closing down or moving out of Mumbai there is no surprise that lands are being diverted to construction of residential, commercial and retail spaces.

Theoretically speaking, for the homebuyer, there could not have been better news. There is no doubt that entry of such corporates will go a long way towards upgrading the quality of housing, better after-sales service and innovative routines in financing, besides quicker construction thanks to the project management skills of this companies.

If one adds FDI to this mix, you will get a better quality and transparency all around. The main focus of big corporate houses is on township projects of millions sq ft, which would involve developing large tracts outside the city. The bulging middle class will be the market for these townships. Redeveloping tenant properties will also be big business for corporates.

In my opinion, the financial strength, the brand image and reputation of the developer, experience in developing big scale projects, ability to bring international standards in amenities and services are some of the perquisites to being long-term players.

“Financial strength is pivotal to ride the cyclical nature of the business, besides the ability create solutions for clients,” pointed out Azim Vilas, Business journalist based at India. It is worth mentioning in this regard that corporates committed to real estate bring in a plenty of credibility. Corporates are sound financially, have market access and more importantly their approach is professional.

The entry of large corporate majors will provide the much needed depth and liquidity to the market. It would enhance stability and the heightened competition will help the end consumer by providing rationalization in real estate prices. Fact remains that real estate is not a six-month or a one-year cycle, corporates and FDI funds are looking at a much longer term while investing in development projects. They are looking at a cycle of three to five to seven years.