Faridabad – Investor driven property market

Faridabad – a district in South East Haryana in Northern India – is one of the major industrial hubs of the country. Sharing its boundaries with Haryana, Uttar Pradesh and the Union Territory of Delhi, Faridabad is strategically located, benefiting from developments in all these regions.

Unlike other areas in the National Capital Region (NCR), one finds stable property market in the residential sector of Faridabad. Buyers are attracted to lesser unit values with the region recording a reasonable business in sale/purchase segment in residential property during the last quarter.

What are people looking at while making these purchases? According to local brokers, investors/buyers are eyeing projects which offer a gamut of the latest facilities such as basement parking areas, swimming pools, gymnasiums, parks, play areas and commercial complexes. An analysis of buyer behavior shows that people are more interested in acquiring properties for investment rather than renting the same.

Capital values of apartments saw a 10-13 per cent growth in areas such as sectors 45, 46, 55 and Nehar Par during the Jan-Mar 2011 period compared to the Oct-Dec 2010 period. Capital values of plots too registered a 15-20 per cent appreciation in values during the same period. However, rental values of apartments did not undergo any change.

There are other classes of residential buyers who are opting for plots and villas in Faridabad as opposed to builder apartments. According to a Magicbricks.com survey, the cost of an average multistorey apartment in Neharpar has either remained same or appreciated marginally between Dec 2010 and
Feb 2011. The capital value in Sector 87 has witnessed an upward trend; in Green Valley, where apartments are ready for possession, the value of
2 BHK apartments appreciated by about 6 per cent in some instances, over the same quarter.  More recently, apartment values in the premium segment in Nehar Par recorded 13 per cent between Jan-Mar 2011, with the launch of premium apartments by leading developers such as BPTP Limited. Omaxe Limited, Era Limited etc.

Thanks to all these trends, the prices of residential properties in Faridabad are increasing in the range of 5 to 15 per cent. To cater to a growing demand, quite a few residential/commercial projects are coming up in several areas including Nehar Par, Green Field, Charmood Village, Suraj Kund Road and NH-2. As of now, Charmwood, Green Valley and Green Field are ready for occupancy. Most projects in the Neharpar area are scheduled to be delivered by 2012 but many are already delayed.

Areas which have been losing out due to poor infrastructure facilities are expected to gain ground as the infrastructure improves. With the Noida to Faridabad highway and metro connectivity till Ballabgarh already on, and infrastructure projects under the Jawaharlal Nehru National Urban renewal Mission underway, the Faridabad realty market can be expected to perform better, if projects are fast-tracked. As of now, people making purchases are mostly investors who have set their sights on future gains.

Source:- Magicbrics