Commercial properties in Delhi witness stable values

Commercial properties in areas such as Paharganj, Jhandewalan, Motia Bagh and Daryaganj have witnessed stable values owing to numerous factors. Realtors believe that these are traditional areas and have old and dilapidated commercial buildings.

Secondly, since they are located in Central Business District (CBD) areas, roadblocks like traffic jams, uneven roads and poor connectivity are deterrents to growth here. That’s why these areas are seeing stable value trends with no major escalation or increase in the number of transactions, realtors said.

Praveen Sethi of City Properties said that capital and rental values in these areas are showing a stable trend. Another city-based realtor, Gaurav Bhatia from Properties & Properties said, “There are more queries than actual number of transactions. Availability of better commercial office space options in National Capital Region (NCR) such as Noida and Gurgaon is diverting buyer’s mindset.”

Balbir Singh, Chairman of Vardhaman Plaza reiterated that, “Once the problems like connectivity and traffic jams are addressed, the commercial values will take an upward trend.” However, there are some renovation projects also going on and old buildings are getting designed as per new standards to meet the demand but this will take some time.

To address these issues, there is a proposed plan of monorail in these areas within next 2-3 years. The plan is already approved and the basic work has also started, Singh said. This will speed up the travelling time to these areas and also resolve traffic issues.

Enhanced connectivity will definitely uplift these areas and improve the demand and number of transactions. Further renovated buildings with proper parking space, good infrastructure, security and other facilities will push the commercial property market, Sethi added.

The current capital values of commercial shop and office space at Pahar Ganj, Jhandewalan and Motia Khan is in the range of 9,000-30,000 per sq ft. With the proposed monorail plan combined with infrastructure facilities is likely to bring back buyers to CBD areas.

Delhi Master Plan 2021

The Master Plan of Delhi 2021 has been in force since 2007. Once this is reimplemented with the new land development policy, Delhi will also offer options to thousands of home buyers. The capital city has still 27,628.9 hectares of land to fulfil the dreams of thousand of home buyers.

The DDA (Delhi Development Authority) has earmarked land at Zone J, K1, K2, M, N, L, O, P1 and P2 for raising residential projects. According to the projections in the master plan, nearly 24 lakh residential units are required for an estimated 23 million people by 2021.

According to the master plan, Delhi will be slum-free in the next 10 years by providing rehabilitation packages (built-up houses with all civic facilities) to slum dwellers. For this DDA has identified 23 sites (slum areas) for rehabilitation. The master plan of Delhi includes chapters like regional and sub-regional frame, population and employment, Delhi urban area 2021, social and physical infrastructure, mixed land-use regulations, development code and plan review and monitoring.

The master plan 2021 has allocated 277 sq km for future urbanization by 2021. In the last fifty years, DDA has acquired 75,609.84 hectares and developed it for residential, recreational, commercial and institutional purposes.

Now, with better and holistic planning, DDA intends to set new records and provide more amenities to people. Delhi is spread over 1,483 sq km and divided into 17 planning zones: 1,159 hectare in Zone-A (Old City); 2,304 hectare in Zone-B (City Extension and Karol Bagh); 3,959 hectare in Planning Zone-C (Civil Lines); 6,855 hectares in Zone D (New Delhi); 8,797 hectares in Planning Zone-E (East Delhi); 11,958 hectares in Zone-F (South Delhi I); 11,865 hectares in Planning Zone-G (West Delhi I); 5,677 hectares in Zone-H (North-West Delhi I); 15,178 hectares in Zone-J (South Delhi II); 5,782 hectares in Zone K-I (West Delhi II) and 6,408 hectares in Zone K-II Dwarka; 22,840 hectares in Zone-L (West Delhi III); 5,073 hectares in Zone-M (North West Delhi II); 13,975 hectares in Zone-N (North West Delhi III); 80,70 hectares in Zone-O (River Yamuna-River Front); 9,866 hectares in Zone P-I (Narela) and 8,534 hectares in Zone P-II (North Delhi).

Ram Gopal Gupta, a policy maker and city planner, says: “In the last 40 years, DDA constructed only 3.5 lakh flats. However, these did not suffice even for 1% of Delhi’s population. Due to lack of housing facilities in Delhi, 10 lakh people are dependent on nearby sates and metro cities in the NCR belt. According to records, DDA was constructing 10,000 flats every year 15 years ago, while in the last 10 years it managed to build 54,000 flats. Today, DDA is not in a position to construct even 5,000 flats a year. The dramatic growth in Delhi’s population has led to congestions and shortages of civic amenities. One of the main causes for this spurt in population is the migration of people into the city from Bihar, UP, Punjab, J&K, West Bengal, Orissa, etc.”

Solution

Today, the NCR cities are best suited to take the burden of housing from the national capital. The NCR has a total area of 33,578 sq km and includes parts of three states, Haryana, Rajasthan, and Uttar Pradesh, with Delhi as a full state.

The NCR is also characterized by the presence of ecologically sensitive areas like the extension of the Aravali ridge, forests, wild life and bird sanctuaries; the river systems of Yamuna and Hindon, and is a dynamic rural urban admixture.

Sub-regions of NCR

The Haryana sub-region comprises nine districts: Faridabad, Gurgaon, Mewat, Rohtak, Sonipat, Rewari, Jhajjar, Panipat and Palwal, together constituting about 40% of the region.

The Uttar Pradesh sub-region comprises five districts: Meerut, Ghaziabad, Gautam Budh Nagar, Bulandshahr, and Baghpat, together constituting about 32% (10,853 sq km) of the region.

The Rajasthan sub-region comprises Alwar district and constitutes about 23% (7,829 sq km) of the region. The NCT (National Capital Territory) of Delhi constitutes about 5% (1,483 sq km) of the region.

Development

In recent times, there has been a tremendous growth of Delhi and the NCR in terms of infrastructural developments and with the advent of major realty players like DLF, Ansal API, Ansal Housing, Unitech, BPTP,Amrapali, Supertech, Gaursons, Assotech, Parsvnath, Ashiana, TDI, Anantraj Group, Omaxe, JP, Antriksh, etc, the areas have been much in news.

Areas like Gurgaon, Noida, Greater Noida, Manesar, Faridabad, East Delhi Extension, etc, have been the areas fulfilling the housing needs of millions of people who live in and around Delhi. With the pressure of increasing population, unavailability of land, and lowering of water table, etc, developers are migrating to new places in the NCR to raise residential and commercial projects.

Rehabilitation scheme for slumdwellers

A novel project proposed by DDA, the “in situ” rehabilitation scheme, moves away from the agency’s previous model of shifting slumdwellers to the city’s fringes as part of rehabilitation package. For this, DDA has indentified 23 sites (slum areas). Consultants have already been appointed for 13 sites.

The Kathputli colony near Shadipur Depot of North Delhi has been taken up in first phase. Tenders will also be floated for the other 22 identified sites. Raheja Developers has been awarded the first of its kind, in situ slum re-development project over 5.22 hectares at Kathputli colony by DDA.

The project envisages construction of 2,800 EWS units (with built-up area 30 sq metres per unit) with community facilities like a multi-purpose hall, Basti Vikas Kendra, a health centre, a Sishu Vatika, etc. Arabtec, the firm which built Burj Khalifa in Dubai, will construct these 2,800 EWS houses and also the commercial complex under the slum redevelopment public-private partnership project between Raheja Developers and DDA, in a time-bound contract of two years.

East Delhi Extension

Developers are exploring new places in and around the NCR, as the pressure of increasing population and unavailability of land forces them out of Delhi and its immediate suburbs.

One such place is East Delhi Extension. It comes under the area of Tronica City and Baghpat (Uttar Pradesh sub-region of the NCR) and is developing very fast. It is 18km from the ISBT and 14km from the Delhi border. In recent times, major realty players have started their projects here.

Even the NCR development board has given East Delhi Extension priority over other areas for development and budgetary allocations. Thus, in the near future, this area would be in demand and a safe investment destination.The Delhi government has also announced two bridges over Yamuna to ease the connectivity of this belt with North Delhi and Central Delhi.

India’s first signature bridge across the Yamuna at Wazirabad promises to enhance connectivity of this place with Delhi. The cable-stayed bridge will link NH-1′s existing T-point at Wazirabad on the western bank with the marginal bund road at Khajuri Khas on the eastern bank of Yamuna, thus connecting North Delhi with East Delhi and East Delhi Extension. This bridge would be a major boon and enhance connectivity of East Delhi Extension with Delhi.

P N Singh, the vice-chairman of Baghpat Baraut Khekhra Development Authority (BBKDA), says: “The area is on prime priority of UP government and the NCR Development Board, which has announced major real estate and infrastructural development in this belt. UP Awas Vikas Parishad has recently acquired 2,700 acres for residential, commercial and recreation development. For connectivity, the road contract has already awarded; it will be a 6-lane national highway connecting Delhi-Saharanpur.”

Vimal Sharma, the joint housing commissioner of UP Awas Vikas Parishad, says: “Keeping the forthcoming infrastructural requirements in mind, we have launched a residential township project, Delhi Saharanpur Marg Bhumi Vikas and Grihasthana Yojna for Aasra and Sapna Enclave on Delhi Saharanpur Marg near Tronica City.

“Of 2,700 acres acquired, 20 acres have been earmarked for the forthcoming housing project. Grihasthana Yojna will be a good alternative to the crowded Delhi region and will create an attractive environment for high-quality living, work and recreation.”

S V Singh, the deputy housing commissioner of UP Awas Vikas Parishad, says: “This scheme has already been closed. Awas Vikas is now planning to launch the next scheme on the same acquired area.

“Under Delhi Saharanpur Marg Bhumi Vikas and Grihasthana Yojna, the development authority has received 5,100 applications for 4,460 built-up houses. Thus, most of the applicants are sure to get their dream house. The built-up houses will be allotted through a lucky draw. Under the scheme, there will be two types of flats: Asara Type 1 & 2 and Sapna Type 1 & 2. Asara Type1 will have a total of 1,984 flats with 33.59 sq metre super area each, while 884 Type 2 flats will have a super area of 47.73 sq metre. Sapna Type 1 will have a total of 608 units of 64.27 sq metre super area and 1,024 flats of 85.74 sq metre super area. The price of these categories ranges from Rs 5.80 lakh to Rs 21.41 lakh.”

Apart from UP Awas Vikas Parishad, NBCC (National Building Construction Company) has joined hands with a private developer, Mahavir Hanuman Group, to deliver 10,000 flats. The joint venture has launched a project called NBCC Town. The first phase of this project will be up for possession this month.

Mahesh Pawar, the chairman and managing director of Mahavir Hanuman Group, says: “We have recently launched River Park. It’s a township which has been subdivided into River Park I and River Park II, both over 120 acres. The township redefines lifestyle in East Delhi Extension. Set amidst nature, with Yamuna running in its backyard, River Park is all about scenic beauty. A major industrial group is also looking for a ‘nano-housing’ option in this area.”

There is also fast development in Tronica City, part of East Delhi Extension. UPSIDC is developing the area and it is divided into residential and industrial sectors. There are nearly 12 residential sectors. Connectivity issues are being sorted out with the four-laning of the Sonia Vihar Road, widening of the Delhi-Yamunotri highway and of course, after the completion of the Signature bridge. The city is conveniently approachable from Alipur-Bund Road along Yamuna on the western side and Delhi-Saharanpur road on the east.

Ansal’s East End Tronica City offers world-class roads, amenities and living conditions. And with most industries moving out to the suburbs, it is likely to be a hub of commercial activities on Delhi-Baghpat Road.

Sanjiv Chaudhary, the director of RMS Group, says: “We have seen a growth in demand in the last couple of months. People are looking for safer investments in closer proximity to Delhi. East Delhi Extension fits on both the parameters. The area is not only a safe investment destination but affordable as well.”

RMS Group has also launched residential and commercial projects here. Sanjiv Chaudhary, the director of RMS Group, says: “All our real estate projects like RMS Swarneem, Plaza Tronica City, Signature Residency Tronica City, Signature Residency II, RMS 3, City Centre, etc, are going to contribute to the remarkable growth in real estate of Tronica City.”

Signature bridge

With a length of around 575 metres and a height of 175 metres, the proposed Signature bridge will have a bow-shaped pylon in the middle.Two high towers will be erected to provide double-cable support in the inner periphery of the carriageway.

Plans are also afoot to construct a pedestrian subway. With four lanes, this engineering masterpiece will have 1.2-metre-wide central verge, space for anchoring cables, maintenance walkway and crash barriers on either side of the central verge. The deck will be composite (steel and concrete) while the pylon will be of steel.

Once the Signature bridge is complete, it will dramatically improve access between North and West Delhi and towards East Delhi Extension for commuters, who have to pass through the narrow lane on the present bridge in Wazirabad, leading to heavy traffic jams in peak hours.