Despite the ongoing slowdown in the global economy, Delhi NCR has remained the cynosure of private equity investments over the years.
Delhi NCR is one of the most developed regions of India. It provides ample amenities to the residents as well as corporates looking to set up their base here. Over the years, the region has witnessed a significant increase in real estate investments. In this article, we will look at some of the major factors behind the rising popularity of Delhi NCR as an investment destination and its future.
As per the expectations of industry leaders, the government has taken some significant decisions in the current fiscal, including a special package of Rs 10,000 crore for the completion of around 4.5 lakh incomplete flats and Rs 30,000 crore for infusing liquidity in the housing finance companies. Earlier in 2020, the Finance Minister had confirmed that the government is soon going to launch Smart City 2.0 mission. Although these decisions are favourable for the entire realty sector of the country, their impact on the Delhi NCR market is more than obvious.
Moreover, to minimise the gap between supply and demand, the government had reorganised the income tax slabs and slashed the rate in the previous Budget. At present, people having income between Rs 5 lakh and Rs 7.5 lakh are taxed at 10 percent; those earning Rs 7.5 lakh to Rs 10 lakh are taxed at 15 percent and those having an income between Rs 10 lakh and Rs 12.5 lakh are taxed at 20 percent. The relaxation in income tax has increased the purchasing power of buyers and motivated others to invest in the realty sector.
Infrastructure is the backbone of the real estate sector. Recently, the government had proposed several new airports under the UDAN scheme and various highways under Bharatmala and Sagarmala projects. The successful completion of these projects in the near future will improve the connectivity between towns and cities across the country. As far as infrastructure projects in the National Capital Region (NCR) are concerned, the government of Uttar Pradesh has allocated Rs 2,000 crore for establishing an airport in Jewar, which is near to Noida. Now, one can easily predict how this project is going to induce immense developmental activities in this region. From hoteliers to cargo companies, Jewar is going to entice investors from various backgrounds.
Noida Extension, Greater Noida, Yamuna Expressway, Dwarka, Sohna (South Gurgaon), Faridabad, Kundli (Sonipat), Raj Nagar Extension, Bahadurgadh, and Bhiwadi are some of the areas in NCR, where development is on its full swing. The investors are keen to exploit better earning opportunities in these regions within the next 3-4 years. On the other hand, Gurgaon has become a hub for swanky corporate offices and luxury retail brands. With the enhancement in the connectivity quotient of Gurgaon, people living in Delhi, Noida, Faridabad, and Sonipat have far better commutation facilities than people living in Pune or Navi Mumbai.
Dwarka, which is spread over an area of 56 km in Delhi, is a hub for hundreds of well-developed societies and is just 10 km away from the IGI Airport in Delhi. It is still the cash cow for domestic, as well as overseas real estate investors. Dwarka is a haven of satisfied end-users who are living in a well-planned sub-city and are empowered with state-of-the-art infrastructure, green surroundings, and availability of quality schools and hospitals. On the other hand, builders in this region are greatly meeting the expectations of both buyers and investors.
Highly-captivating commercial sector
One of the most significant features of Delhi NCR's real estate is its ever-growing commercial segment. Alike the previous years, the commercial real estate of Delhi NCR has experienced phenomenal growth in terms of area. The demand for Grade A offices is continuously increasing in the region as more and more IT companies, banks, and FMCG companies are expanding their reach in Delhi NCR. Property owners are enjoying rising lease rentals and consultants are also making good bucks by purveying quality services. All these trends validate that the prospects of both residential and commercial real estate are bright in Delhi NCR.