Demand for office space drops in metros

Office space demand slowed down in the first quarter of 2012, with around 4.1 million sq ft getting absorbed across the leading cities in the country.

In the previous quarter (Oct-Dec 2011), almost 6.5 million sq ft was absorbed, according to the India Office report released by CBRE on Thursday. NCR (National Capital Region), Mumbai, Chennai and Bangalore were the leading cities accounting for more than 70% of the entire space getting absorbed in the country.

Supply continued to overtake demand in the first quarter of 2012, almost 5.9 million sq ft of office space was added in leading cities. The new supply was largely concentrated in NCR, Bangalore, Mumbai and Chennai, comprising almost 90% of the entire quantum of the present quarter.

The report said Mumbai witnessed decline in rental values at Nariman Point and Lower Parel, mainly due to sluggish demand levels. Average rentals in Grade A buildings in Nariman Point dropped from Rs 300 a sqft a month in December last to Rs 290 in March.In Lower Parel, it reduced from Rs 155 to Rs 150 in the period. “It is anticipated that supply dynamics will continue to dictate rental movement in coming quarters, with values in the CBD being stable and those in suburbs slipping,” it said.

Nariman Point has limited transactions with only a marginal absorption of around 10,000 sq ft. “It did not witness the addition of any fresh supply in the present quarter and vacancy remained stable. In coming few quarters, vacancy in this micro-market is slated for rise from the current estimated 6-7%,” said the report.

A marginal decline was seen in rental values during the quarter. Around 2 lakh sq ft of Grade-A office space became available in the Extended Business District (EBD) of Lower Parel. Worli and Prabhadevi saw a marginal correction of 1-3% in rental values. “The decline was largely due to low levels of transactions…,” it said.

BKC continued to remain a preferred location for corporate occupiers looking for expansion. The CBRE report also observed limited leasing activity in the Secondary Business District (SBD) of Andheri, Vile Parle and Jogeshwari.

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.

Noida realty scores on the back of strong infrastructure

Infrastructure like roads, sewerage, power and water supply, etc, which has been developed in Noida, is far better than those in most new cities and urban agglomerations that have come up in the country.

Excellent connectivity to New Delhi, Gurgaon and Faridabad has also made Noida a destination for business travellers and investors.

Noida is also safe from any land disputes and is good for buyers, investors, developers and even farmers. Noida Authority is close to solving the abadi disputes and disbursing additional compensation of 64.7% in cash and 5% of the developed land as directed by the Allahabad high court.

S K Dwivedi, the chief executive officer of Noida Authority, says: “We have almost solved the abadi issues in all the disputed lands of 34 villages under the new law, Abadi Niyamawali of June 30, 2011. Farmers can use the land according to their wish. To solve the disputes, the authority has allotted 1,000 plots (totalling 70,000 sq metres). Since the agitation over land acquisition began, farmers have been making several demands and have threatened to stop developmental work. After this, we are on the way to disburse an additional compensation to all the farmers belonging to 15 villages, who went court over the land row. The latest verdict of Allahabad high court has given direction to give an additional compensation. The authority has taken it seriously and is on the job, treating it as top priority.”

“In line with the court verdict, the Noida Authority has to disburse Rs 1,100 crore as an extra amount to farmers. We have already disbursed Rs 255 crore. The relevant files are being readied for giving out the rest of the money. To allot 5% extra developed land on the court direction, the authority needs nearly 200 hectares of land. Keeping the shortage of land in mind, this is really a challenge to us.”

Dwivedi says: “Undoubtedly, Noida has emerged as a preferred destination for thousands of families who look for the advantages of a metropolitan framework, but without all the attendant evils of pollution and cramped living normally associated with a major metropolis. This city has advantages like international-quality infrastructure, uninterrupted power and water supply, and a proposed international airport (at Jewar). With these facilities, Noida is one of the fastest developing residential and commercial hubs in the country. IT, insurance, institutional and residential sectors in the region are the main engines of growth around which the entire township is being developed. Noida authority is ensuring that the place has world-class infrastructure where every sectoral player would like to come and invest.”

“The NCR Planning Board has already approved Master Plan 2031 of Noida, which was drafted in 2009. In the plan, there is a lot of scope for infrastructural, residential and commercial development like widening of roads with underpasses and flyovers, highrise projects, hotels, major Metro and road linkages to ease the traffic,” Dwivedi says.

“Under the Abadi Niyamawali (law) of June 30, 2011, Noida authority is regularizing abadi of all disputed villages. In addition, demands of special quota for farmers’ children in educational institutions have also been accepted. Most of the demands like increased compensation and plotted development have also been made. This will greately facilitate in the resumption of construction work,” Dwivedi says.

Dwivedi says “The authority is working to decongest various bottlenecks that are

 coming in the way of smooth traffic. The roads along Sector 18, Rajni Gandha Chowk, Sector 37 and Choura Mor, among others, have been widened to meet the increasing traffic. Many elevated roads, underpasses bridges have been proposed. The DPR (detail project report) of Metro lines on six different routes is also under preparation.” Noida is very popular for institutional, residential, industrial and IT developments. Many MNCs and domestic companies have set shop.

The authority has earmarked a lot of space for developmental works to encourage more MNCs into the place. On the requisition of the BCCI (Board of Control for Cricket in India), the Noida Authority has allocated 40 acres land for an international cricket ground in Sector 101, 102, 103 in the 300 acre sports complex near the expressway, Dwivedi says.

Luxury Homes in Noida

Each person has a definition of ‘luxury’, depending on his or her social status and lifestyle. Thus, developers cater to a wide variety of demands, even within the ‘luxury homes’ segment.

In recent times, Noida-Greater Noida and Ghaziabad have seen an upsurge in the demand for luxury homes. With higher disposable incomes, the confidence is visible not just among buyers, but also among sellers.

Taking a cue, several builders in the NCR have begun developing better and larger ‘luxurious homes’. Gardenia Group has launched Golf City and Gardenia Gateway in Sector 75; Gardenia Glory in Sector 46 and Gardenia Grace in Sector 61 in Noida. The Gardenia Group has committed to deliver over 4,000 dwelling units in next two-three years.

The Antriksh Group has launched Antriksh Forest in Sector 77, Antriksh Golf View 1 and Golf View 2 in Sector 78, Antriksh Nature in Sector 52 and Antriksh Green in Sector 50, in Noida. Antriksh Nature and Antriksh Green are nearly complete, while Antriksh Forest and Golf View are under construction.

Amrapali Sapphire in Sector 45, a premium project of Amrapali Group has been launched in two phases; phase one is being built at a cost of Rs 275 crore and is over 10 acres. Amrapali Group is poised to deliver over 1,100 houses in these two phases.

Supertech Group has launched a unique circularshaped residential project, ORB, in Sector 76, Noida. The project has been masterminded by Bollywood star Twinkle Khanna. Prateek Group has launched a luxurious residential project, Prateek Stylome, in Sector 45, Noida. JM Housing Ltd’s JM Orchid in Sector 76 and Grand Ajnara Heritage in Sector 74 are some of the other luxury developments in Noida. It is on a 130-metre-wide road near the 6-lane FNG expressway and is over 104 acres.

Anil Sharma, the chairman and managing director of Amrapali Group, says: “Today, Noida is the hub of development with most of the developers in the Delhi NCR active here. The development is the result of a robust demand and the availability of houses in various categories and price ranges. Luxury is surely the new buzzword in Noida.”

Rakesh Yadav, the managing director of Antriksh Group, says: “Antriksh Golf View in Sector 78 presents dream apartments for buyers, which include 2- and 3BHK, at reasonable prices. There has been an increase in investments in Noida, Greater Noida and Ghaziabad owing to the increased urbanization of these areas.”

Manoj Rai, the chairman of Gardenia Group, says: “Once again, the real estate sector is on a boom and builders are not lagging in luring customers with attractive announcements. Since the time the Noida Expressway become operational, the real estate around the stretch has seen a tremendous response.” R K Arora, the chairman and managing director of Supertech Group, says: “ORB is a part of our 50 acre integrated township project, which will comprise 3- and 4BHK apartments. Units are in the range of 2,215 sq ft to 4,270 sq ft. The project has been innovatively designed for maximum interior space and 180 degree view.”

“Our project, Kaamna Greens, will not only elevate the lifestyle but will protect life by being a state-of-the-art earthquake- resistant residential project complying with earthquake Zone 4 regulations,” Gurinder Singh Sikka, chairman and managing director of Sikka Group, says. Prashant Tiwari, the managing director of Prateek Group, says: “Previously, people who wanted to purchase luxurious homes used to move towards Gurgaon but with the development of luxurious projects in Noida, people are making a beeline for Noida.”

Ashwani Prakash, the executive director of Paramount Group, says: “Golfforeste is one of our prestigious projects. It is on a 130-metrewide road near the 6-lane FNG expressway and is over 104 acres.”

New Income Tax amendments related to property transactions

As per the Finance Act, 2012 a new section 54GB has been added in the Income Tax Act which provides relief from re-investment of sale consideration in the equity of a new start-up SME company in the manufacturing sector which is utilized by the company for the purchase of new plant and machinery.  Some of the important conditions to avail this benefit are as under:-

i)    The amount of net consideration is used by the individual or HUF before the due date of furnishing of return of income under sub-section (1) of section 139, for subscription in equity shares in the SME company in which he holds more than 50% share capital or more  than 50% voting rights.

ii)    The amount of subscription as share capital is to be utilized by the SME company for the purchase of new plant and machinery within a period of one year from the date of subscription in the equity shares.

iii)    If the  amount of net consideration subscribed as equity  shares in the SME company is not utilized by the SME Company for the purchase  of plant and machinery before the due date of filing of return by the individual or HUF, the unutilized  amount shall be deposited under a deposit scheme to be prescribed in this behalf.

iv)    Suitable safeguards so as to restrict the transfer of the shares of the company, and of the plant and machinery for a period of 5 years are proposed to be provided to prevent diversion of these funds. Further, capital gains would be subject to taxation in case any of the conditions are violated.

v)    The relief would be available in case of any transfer of residential property made on or before 31st March, 2017.

The above mentioned tax benefit is applicable only in respect of long-term Capital Gains arising on sale of a residential property, namely a house or a plot of land.

Taxation of unexplained investments

In case unexplained investment in house property is made on or after 1st April 2012, then as per the new provision contained in section 115BBE income-tax will be chargeable at the rate of 30%.  All tax payers are therefore advised to carefully enter into property transactions in particular and not to make any unexplained investment in the Real Estate Sector, otherwise there will be heavy dose of income-tax.

Tax Deducted at Source on transfer of certain immovable property

As per the Finance Act, 2012 it is provided that every transferee at the time of making payment or crediting any sum by way of consideration of immovable property (other than agricultural land), shall deduct tax at the rate of 1% of such sum if the consideration paid or payable for the transfer of such property exceeds:-

(a)    50 lakh rupees in case such property is situated in the specified urban agglomeration or

(b)    20 lakh rupees in case such property is situated in any other area.

 The specified area for which the limit of Rs. 50 lakh and above is applicable will mean the following areas :-

(i)   Greater Mumbai urban agglomeration

 (ii)  Delhi urban agglomeration

 (iii) Kolkata urban agglomeration

 (iv) Chennai urban agglomeration

 (v)   Hyderabad urban agglomeration

 (vi)  Bangaluru urban agglomeration

 (vii) Ahmedabad urban agglomeration

 (viii) District of Faridabad

 (ix)    District of Gurgaon

 (x)    District of Gautam Budh Nagar

 (xi)    District of Ghaziabad

 (xii)    District of Gandhinagar

 (xiii)    City of Secunderabad

Thus, other than the above areas the new provision relating to tax deduction at source will be where the property value exceeds Rs 20 lakh.  It is also provided that where the consideration paid or payable for the transfer of such property is less than the value adopted or assessed or assessable by any authority of a State Government for the purpose of payment of stamp duty, the value so adopted or assessed or assessable shall be deemed as consideration paid or payable for the transfer of such immovable property.

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.

Real Estate Growth in Meerut

Meerut has rapidly come up as a strategic real estate destination owing to its close proximity to the Delhi NCR. It is connected to Delhi by NH-58.

Today, as the mid- and the lower-middle class end users find property in the NCR out of their reach with real estate prices hitting the roof here, Meerut has shaped up as an ideal destination catering to the increasing housing demands on one hand, while maintaining the prices within affordable limits on the other.

Forthcoming real estate projects

Real estate in Meerut is riding on the crest of increasing demand, boosted by large availability of land at low prices. The market is demonstrating buoyancy with the presence of prominent builders like Ansal API, Supertech Ltd, MSX Developers, Era Group, Majestic Properties, DLF, and Omaxe.

Meerut is also seeing an upswing in prices owing to the presence of leading construction companies, which are eager to buy land for their projects. Market watcher say property prices in Meerut have trebled in the past two years.

Residential property

Excellent infrastructure facilities, sound planning and top-grade security of some of the housing projects on the outskirts of Meerut has increased demand in this area. The most sought-after location is along the Meerut Bypass.

Also, the Hapur Road and the Cantonment Road are gaining prominence as ideal destinations for property investments and are attracting large-scale developments. Of late, commercial and residential complexes are coming up on Mawana Road and Modipuram on the Muzaffarnagar Highway.

Prominent builders are coming up with new projects like Ansal Housing, a residential township by Ansal API; Sports City, Shopprix and Palm Greens by the Supertech Group, and a two residential projects and a mall by the Era Group. Other builders like Saamag Group have residential projects like Saga Habitat, Ark City and Coral Springs, while the Gayatri Group is building many residential projects here.

Commercial property

High-end commercial development is also taking place in Meerut, in a limited way though. Rates of agricultural land here are growing mainly in the areas adjacent the main roads; they hover between Rs 26 lakh and Rs 34 lakh per hectare, whereas for other purposes, the prices have increased from Rs 43 lakh to Rs 54 lakh per hectare. Prices of agricultural lands along the city roads are also appreciating by the day, with the rates ranging from Rs 21 lakh per hectare to Rs 24 lakh per hectare. For the other purposes, the rates are over Rs 26 lakh per hectare.

Why Meerut?

Pranav Ansal, the vice-chairman of Ansal API, says: “With an increase in the number of domestic and foreign players across industries shifting base to Tier II cities, demand for such townships is on a high. With this mission, we have planned to develop a Signature Township, Sushant City, over 300 acres. It would offer an array of options like built-up houses, independent floors, bungalows and villas. The township will cater to housing requirements of more than 5,000 families.”

R K Arora, the chairman and managing director of Supertech Group, says: “Here

 price of residential property varies from Rs 2,350 per sq metre to Rs 16,500 per sq metre, depending on the location. Earlier, property prices in Gurgaon and Noida were considered to be going through the roof, which drove property buyers to the other parts of the NCR. Price of land in Meerut is not so high but the property market is certainly showing phenomenal potential for growth. For the people who cannot afford an apartment in Delhi and yet want to remain near the city, Meerut offers a cost effective option.”

Manoj Gaur, the managing director of Gaursons Ltd, says: “Meerut is a fast developing city and is giving a tough competition to other NCR cities like Noida, Gurgaon, Ghaziabad, which have become very costly for the middle class. As land is still freely available here, builders are making a beeline for Meerut. The city is only around 70km from Delhi.”

Connectivity

Thousands of people commute daily to the Delhi NCR for work from Meerut. Keeping this in mind, various development authorities in the NCR, in concert with the Meerut Development Authority, have planned for an expressway between Delhi and Meerut, as well as for the extension of the Metro line from Delhi border to Meerut.

This is expected to bring down the commuting time between Delhi and Meerut to just 45 minutes. This will boost the overall real estate development in the city and, in the long run, return impressive returns on investment on property here.

Now, it will be easy to move from Delhi (Anand Vihar) to Meerut as the authority is all set to start the work on Rapid Rail Transit System and Delhi-Meerut Expressway.

An elevated railway track will be aligned to the expressway route. The length of this proposed track is 67km, with an estimated cost of Rs 1,040 crore. The 64km long expressway itself is estimated to cost Rs 4,500 crore and is likely to be completed by 2015. The first 8km of the expressway from Nizamuddin Bridge to Ghaziabad border will have 16 lanes.

The expressway will cover 28km of NH-24 between Ghaziabad border and Dasna and this stretch will be widened to 14 lanes, from six lanes, according to the final plan. Also, a 36km stretch between Dasna and Meerut will be constructed as a fourlane highway. The tender of this project has been given to the Delhi Integrated Multimodal Transport System (DIMTS) by the NCR planning board. Under this project, stations are likely to be constructed at a gap of 4-5km.

Anand Vihar, Vaishali, Mohan Nagar, Meerut Road (Airtel Cut) Morta, Duhai, Murad Nagar, Gang Nahar, Modi Nagar, Mohiuddinpur, Meerut Bypass Cut and Pallavpuram are the proposed halts of this Rapid Rail Transit System (RRTS). An underground track will be set up from Anand Vihar to Dabur, due to the Metro project.

However, there is a consensus among the officers concerned that the Metro Rail will not come in the way of the high speed train. The consultant company has designed the entire project in a manner that there is no need to acquire or demolish any existing property. The track will be underground from Anand Vihar to Dabur and then run on elevated track up to Meerut.

The average speed of the Metro rail in Delhi is approximately 30-40km per hour but the speed of this rapid train will be 150km per hour. It is hoped that one can reach Meerut from Delhi within 50 minutes, which was not possible earlier. The services of two passenger and express trains could be available on the two proposed track.