Neharpar and Faridabad Property Rates Have Peaked Out
Neharpar and Faridabad Property Rates Have Peaked Outin Property Time |Property News ! Sun Jan 13, 2013 1:05 am
Neharpar, which was witnessing an unprecedented boom since January 2012, has also stopped in its tracks. Buyers are now reluctant to pick up a flat in a Neharpar for Rs 3,000/sft. There is stray demand for a couple of projects where possession will be handed over soon (BPTP Princess Park, Uppal Jade), but even here rates have moved up so sharply, that buyers are unwilling to cough up the enhanced rates.
Princess Park resale rates are 2600/sft, while Uppal’s 2 BHK (1248 sft) resale rate is 2,800/- per sft. Transactions are not actively happening at this rate. Even small ticket items like Era Divine Court floors, where you can get a 3BHK unit for as little as 28 lakhs, are finding very few takers. BPTP plot rates have broken down by 1500/- to 2000/sq yard, and sellers of plots outnumber buyers by 7:2.
The reasons are clear, and these are:
1. Faridabad and Neharpar property rates have moved up too fast and in too short a period. The rates in Neharpar are reasonable though and are expected to hold. If at all the rates correct, the correction will be marginal.
2. Neharpar will take 3-4 years to become 100% livable. buyers don’t want to pay anything more than 3,000/sft in an area where development has yet to happen.
3. Job creation is very slow in Faridabad. However, this is expected to pick up steam in 2013.
4. Everyone has turned bullish on the real estate market. This is a classic sign of a bubble.
RE: Neharpar and Faridabad Property Rates Have Peaked Outin Property Time |Property News ! Sun Jan 13, 2013 4:22 pm
by BLESS ME and YOU
Kavta ji just for your update "SRS has started Value Bazar in neharpar in SRS in its Residency. initially its in community centre ..... but soon will be shifted to 5000 Sq feet Showroom. According to SRS this store will be bigger than SRS Crown plaza ,it will offer all goods , apperals , etc etc.. Home delivery is limited but soon will be available in neharpar."
RE: Neharpar and Faridabad Property Rates Have Peaked Outin Property Time |Property News ! Mon Jan 14, 2013 11:19 pm
by Guru • 3 Posts
RE: Neharpar and Faridabad Property Rates Have Peaked Outin Property Time |Property News ! Tue Jan 22, 2013 6:27 pm
Article in economic times about neharpar
Neharpar Area, also known as Greater Faridabad, was incorporated in 2004-05 under the city's master plan. The location shares its boundaries with eastern periphery expressway, which connects with Ghaziabad, Noida, Faridabad and Palwal, making it an industrial corridor.
Sector 79 has been designated as commercial district by the Municipal Corporation of Faridabad. It is being developed with an objective of providing residential, commercial and office spaces to an essentially strategic location between Greater Noida and Faridabad. In tune with these plans, a number of infrastructure initiatives currently underway will provide vastly improved connectivity: The KMP (Kundli-Manesar-Palwal) expressway will connect the Neharpur area with Delhi and Gurgaon. A three-km flyover between Delhi and Faridabad which will ease traffic bottlenecks at the Badarpur border is near completion. Six-laning of the existing bypass road starting from Badarpur, parallel to the Agra and Gurgaon canals is near completion.
Further, Metro connectivity from Faridabad border to South, East and Central Delhi and various industrial / commercial centres like Badarpur, Tughlakabad, Mohan Estate, Sarita Vihar, Jasola, Okhla Industrial Area, Nehru Place, Mool Chand, Lajpat Nagar Areas, Lodhi Colony, and Central Secretariat will make many of the key locations of central and south Delhi accessible.
A number of malls now supplement the local markets â€” Crown Plaza Mall, Good Store and Lifestyle being among the major ones. The area now has the benefit of educational institutions such Echelon Institute of Technology, Apeejay SchoolFaridabad, Palm Beach School for Autism, Modern Delhi Public School and the Institute of Aviation Management. Healthcare facilities include Apex Diagnostics and Polyclinic, Kilkari Paediatrics Clinic, Diagno Aide Pathology Lab and Kalra Child Care Centre.
Huda (Haryana Urban Development Auhtority) is planning to construct sector roads (sectors 75-89) in the Neharpur area, further augmenting connectivity. Once these facilities are in place, Neharpar will be on a par with other major realty hotspots in the NCR region.
The biggest draw is that property is still available at affordable rates: Rs 12,000-Rs 13,500 per sq.yd in primary market and Rs 9,000-Rs 10,000 per sq.yd in secondary market. Apartments are available at Rs 2,050-Rs 3,500 per sq.ft. On an average, the region has witnessed price appreciation of approximately 30 percent over last 12 months. As such, the Neharpur area is still the most affordable in NCR region if we take Noida Extension as a benchmark for affordability. Even considering the steep increase in prices over the last year or so, Nehapar remains a more cost-effective option than Noida, Gurgaon and other parts of Faridabad.
Given the projected infrastructure development over the next 2-3 years, Neharpar is a promising mid to long term property investment bet. The area saw an boom from January 2012, and though the boom has now slowed on account of the sharp and sudden upward movement of property prices, rates are still reasonable and therefore expected to hold.
As per the latest market conditions, it does seem like there is an inventory overhang in fresh bookings, which will take six to 12 months to clear. There are a few resale units available which are primarily finding takers focused on budget homes. Property transactions at Neharpar are at low ebb. The next round of demand will depend on: How fast the government executes infrastructure work, the performance of the economy, and the generation of employment opportunities.
Property rates at Neharpar and Faridabad will stay steady between Rs 3000-Rs 3500/sq ft for the interim. Projects with imminent possession dates should move up to these levels, while fresh bookings will lag until the infrastructure work is given a push. In other words, only investors with a horizon of at least a couple of years can expect to see a meaningful rate of return on investment. In fact, nearly 90 percent of investors into Neharpar are looking for long-term gains.
Demand for property in Faridabad's Sectors 88 and 89 is high as both are located quite close to two upcoming highways. In these sectors, the going rate for group housing ranges from Rs 1400-Rs 1,600/sq ft on the secondary market. In the primary property market, developers are quoting rates ranging from Rs 1,600-Rs 2,200/sq ft. The price of group housing has risen by between Rs 150-Rs 200/sq.ft. over the last one year, and that of plots by about Rs 2,000/sq yd.
The major realty players in Neharpar include BPTP, SRS, Omaxe Ltd, Vipul Group, Puri Constructions and RPS (BPTP has the largest land bank). TDI also has plans for residential and commercial projects in the area.