Demand-Supply Assessment of Raj Nagar Extensionproperty.magicbricks.com/.../rajnagar-extension... · 8.1 Ghaziabad 8.2 Raj Nagar Extension CHAPTER 9: Future Outlook ANNEXURES Annexure

Demand-SupplyAssessment of

Raj Nagar Extension

June 2010

INTRODUCTION

I. The Study

II. Executive Summary

CHAPTER�1:� Ghaziabad�Overview��&��Ghaziabad�Masterplan�2021

CHAPTER�2:� Raj�Nagar�Extension�Overview�

CHAPTER�3:� Project�Profile�&�Raj�Nagar�Extension�Map

CHAPTER�4: Demographic�Profile

4.1 Ghaziabad

4.2 Noida

CHAPTER�5: Supply-Demand�Analysis

CHAPTER�6: Market�Research

6.1 Locality Survey Analysis

6.2 Consumer Survey Analysis

6.3 Property Fair Data Analysis

CHAPTER�7:� Value�Analysis

CHAPTER�8:� Infrastructure,�Transport�Links�&�Connectivity

8.1 Ghaziabad

8.2 Raj Nagar Extension

CHAPTER�9: Future�Outlook

ANNEXURES

Annexure 1: Ghaziabad Report (Vol 1 Issue 1, Vol 1 Issue 2, Vol 1 Issue 3, Vol 1 Issue 4,

Vol 2 Issue 1)

Annexure 2: News Articles

Annexure 3: Market Survey

TABLE OF CONTENTS

■Objective

One of the leading developers - SG Estates has undertaken three projects -Impressions 58 Phase 2 - Ivory Tower, Impressions 58 and Impressions Plus inRaj Nagar Extension. They have now proposed a new project in the area. Forthe same they wanted to conduct a demand-supply analysis study.

■Term�of�the�study

The study was to be conducted over a period of one week from June 03 toJune 10, 2010.

■Methodology

Brix Research team conducted the study across Delhi NCR. Tools of the study included:

- Offline and online survey

- Primary market research

- Secondary market research

- Primary and secondary data analysis

- MagicBricks site data analysis

- Compilation of media research

- Financial data modeling

- Interpretation on basis of structured data

- Graphical and tabular representation of the data

■ Scope�of�the�Study

- Area Profile

- Buyer Profile

- Demand-Supply Assessment

- Future Outlook

The Study

Introduction

SG Estates, a leading developer building in Raj Nagar Extension, hascommissioned Brix Research to conduct a study on demand-supply assessmentin Raj Nagar Extension to analyse the feasibility of its proposed project.

Raj�Nagar�Extension

Raj Nagar Extension is a pioneering effort of a group of (15) Delhi NCR’srenowned developers, who have joined hands to create affordable homes.

About�the�Study

Brix Research conducted the study across Delhi and NCR. Online and offlinesurveys were conducted for the analysis. Primary, secondary and mediaresearch was carried out to assess the profile of the area and buyers, availabilityand demand scenario and future prospects. Extensive data-mining and analysiswas done to prepare the study report. The analysed data was supported bygraphical and tabular representations for better understanding.

Conclusion

Raj Nagar Extension is fast developing into a real estate destination. It’s one-of-a-kind residential project and that uniqueness sets it apart from other projectsin the market. The survey conducted (online and offline) revealed that peopleare quite familiar with the brand Raj Nagar Extension but many of them haven’treally visited the area. However, majority feel that it offers a good residentialabode and are therefore willing to invest in the place.

The Raj Nagar Extension Developers Association believes that with theconstruction work progressing smoothly and many project possessionexpected by end of year 2010 the buyer interest is high. The infrastructure ofthe area is also developing at a good pace. The Ghaziabad DevelopmentAuthority’s infrastructure and transport initiatives are further helping boost theprospects of the locality.

Executive Summary

In the last twenty years Ghaziabadhas expanded more than anyother city in the National CapitalRegion (NCR) and earned the title

of the fastest growing district in thecountry, mainly on account of itsrapid industrialisation and itsproximity to Delhi. A large number ofpeople stay here but carry on theirtrade or are employed in Delhi. Beforethe formation of Ghaziabad district on14th November 1976, it had thestatus of a tehsil in district Meerut,but after it became a district, itdeveloped very fast and itspopulation too increased in thatproportion.

It was featured in the internationalmagazine Newsweek and was listed inthe top 10 most dynamic cities of theworld during the year 2006. The cityhas well-planned roads, malls, flyoversand metro connectivity.

Major growth driver of Ghaziabad aresmall, medium and large scaleindustries. However, the city has nowgrown out of the traditional imageand has emerged as the new realestate destination. The growinginformation technology, retail,financial and service sectors are thenew drivers of growth. Proximity toDelhi and metro rail reaching DilshadGarden are the other factors workingin favour of Ghaziabad. The metroline’s extension to Anand Vihar hasfurther boosted the real estateprospects of the city.

Ghaziabad’s growth story began inthe mid-1990s, when the GhaziabadDevelopment Authority tied up with a

private developer, Shipra Estates, tocreate Shipra Suncity. It offeredhousing at affordable rates to themiddle class in the Delhi NCR. Theproximity to central commercialbusiness districts of Connaught Placeand ITO helped increase occupancyand hence demand. This also gave afillip to the previously struggling landbanks of Vaishali and Kaushambi anddemand rose across Ghaziabad.

The success of private developmentin Indiarapuram and the rapid growthin retail infrastructure in the shape of 32 malls in the city added to itsattraction. Finally, with real estateemerging as the major driver, the cityadministration also came up with alarge number of favourable policiesthat further enhanced the quality ofdevelopment in the city.

The residential sector of the city isabuzz with developments. With anumber of renowned developersmaking a beeline for the city, theoptions are many – for end-users andfor investors.

Besides, the commercial sector is alsocatching up fast. There are a numberof malls dotting the city. The Pacificand Shipra malls are amongst thelargest in the NCR. Being a cost-effective option, there is a gooddemand for office and retail space.However, infrastructure is a roadblockin the growth of the commercialsector. The neighbouringcounterparts – Noida and Gurgaonare proving a tough competition withavailability of better infrastructurefacilities.

About�UsBrix Research, the Research &

Analysis wing of MagicBricks.com,the Number 1 property portal

promoted by the Times of Indiagroup, constantly monitors thecountry’s real estate market.

Brix Research conducts focusedonline surveys to track real estatemarket trends. It releases RegionalValue Analysis Reports, city-wisereports and collects residential,

commercial and transactions dataacross a number of cities and

provides insights for the RealtySector and Govt Agencies.

Brix Research Analytics models dataon financial parameters, based onthe logical analysis of facts, along

with relevant market intelligence togenerate user-friendly insights &

solutions.

Gathering inputs and responsesfrom professionals, brokers and

developers, Brix Research Reports &Surveys are used as benchmarks -extensively covered by the media.

Brix Research tracks actual realestate transactions across 15 citiesto determine realty movements,

price indications, localitypreferences and lifestyle features.

This data, along with financial datafrom banks and trends tracked bythe Reserve Bank of India, formed

the backbone of Residex – theresidential real estate index

compiled by the National HousingBank (NHB).

Brix Research has evolved in-depthcontent, insights, data and analysesfor the realty sector that is includedin its articles, stories, blogs and city

reports. Brix Research also generatescustomised content for the mediaincluding The Times of India, TheEconomic Times & Times Property.

Ghaziabad Overview

Nevertheless, values in Ghaziabad's realestate market have been growingduring the Jan-Mar 2010 period. Withthe extension of the metro line andproximity to facilities for theapproaching Commonwealth Games,property values in Ghaziabad areexpected to rise further.

11th�Five�Year�Plan

As per housing shortage and demandsurvey carried out by the Uttar PradeshHousing and Development Boardthrough reputed consultants M/s RitesLtd and M/s ORG Pvt Ltd in the year2004, for the next 15 years for 50 townsin the Central Zone and the NationalCapital Region of the state, the totalhousing demand in 25 towns of CentralZone and 25 towns of the NCR Zone

has been estimated at 6.46 lakh and12.09 lakh units, respectively. On anaverage, the housing demand for EWSand LIG categories in both the zoneswould be 24 and 34 per centrespectively. This means that whiledevising the future housing strategy,more than 50 per cent units will haveto be provided for these categoriesalone.

All these statistics bode well for thefuture of the Raj Nagar Extensionwhere over 4,500 constructed units willbe ready for occupancy by end of 2010.

(Sources:�Housing�and�Urban�PlanningDepartment�-�Comments�on�the�Approach�Paper�to11th�Five�Year�Plan�-�http://awas.up.nic.in/,�VARVol-1,�Isssue-1�and�http://ghaziabad.nic.in/Default.htm

About�UsThe internet has empowered and

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Keeping with the trend, TimesBusiness Solutions launched

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Raj Nagar Extension

Overview

Raj Nagar Extension is a newdeveloping area ofGhaziabad formed by 15developers. It is situated

near prime residential localities likeRaj Nagar and Kavi Nagar, anddeveloping localities like Vaishali andVasundhara. It also has goodconnectivity to East Delhi, Noida andGreater Noida. It is further connectedthrough a six-lane expressway withthe GT Road and to NH-58.

Raj Nagar Extension comprisesAshiana Homes, SVP, SG Estates, LandCraft Developers Pvt Ltd, KDPInfrastructure Pvt Ltd, ShreyaDevelopwell Pvt Ltd, Shree EnergyDevelopers Pvt Ltd, Ajnara Farms &Services, Ascent Buildtech, NitishreeInfrastructure Limited, High EndInfratech, Krishna AssetReconstruction, MCC Builders,Quantam Buildwell Pvt Ltd andShomit Finance Limited. It hasbecome a new real estate destinationfor middle-class end-users andinvestors from Meerut and other citiesin Uttar Pradesh, as well as buyersfrom the Delhi NCR.

With the launch of premium andaffordable residential projects, a widevariety of options are available. Thecurrent price range is between Rs1,600 and Rs 1,800 per sq ft with allmodern amenities. Commercialmarkets will take another 2-3 years toestablish base at Raj Nagar Extension.

According to Ravinder Singh, a localrealtor, “We have very high hopes for

Raj Nagar Extension. Values here arelow compared to Indirapuram,Vaishali and other areas in theneighbourhood. During theeconomic slowdown, transactionsnever really stopped because ofaffordable projects that have beenlaunched.”

Land Craft has completed anaffordable group housing project,River Heights. It offered 32 units of 1BHK (680 sq ft) at Rs 10.63 lakh and 2BHK (965 sq ft) at Rs 15 lakh. All theunits have been sold out and anothertower consisting of 1 BHK (705 sq ft)at Rs 11.62 lakh is coming up. Out ofthe total 30 units, 50 per cent havebeen sold-out and would be readythis year. Ashiana Le Residency is ajoint venture between AshianaHomes and Land Craft. A 2 BHKapartment of approximately 1,090 sqft costs Rs 19.90 lakh and a 3 BHKapartment of approximately 1,620 sqft costs Rs 30 lakh, and these will beready by 2011. Ashiana Homes haslaunched Palm Court at Raj NagarExtension. The project offers 3 BHKapartments of approximately 1,275 sqft costing upwards of Rs 26 lakh. Theproject may be ready by 2011.

Raj Nagar Extension is a one-stopdestination for a wide band ofmiddle-class end-users, offeringchoices ranging from a 1 BHK for Rs12 lakh to a 3 BHK for 40 lakh, andthrowing in amenities likeentertainment zones, shoppingarcades and jogging tracks. It fallsunder the Ghaziabad district, which is

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strategically located, in terms of twoNational Highways - NH-91 (GT Road)and NH-58 (Meerut Road, which goestowards Dehradun) - passing throughit. Invariably, the traffic density onthese roads is very high which forcedplanners to build a mini, six-laneexpressway, which will link NH-91 toNH-58, bye-passing the high trafficdensity area of Ghaziabad.

The Raj Nagar Extension is situated onthis new Meerut bye-pass. The entirearea is yet to be developed. This hasgiven the authority and developers achance to carry on a planneddevelopment in the area.

Coupled with the new Master Plan,which envisages a new residentialzone, Ghaziabad DevelopmentAuthority (GDA) opened a new vistato private developers forconceptualisation and creation ofwell-planned, group housingcomplexes and townships for thequality conscious.

The USP of this area is an adjoining,perennially green and unpollutedbelt, which will remain undisturbedowing to the fact that GhaziabadDevelopment Authority has declared500 acres along the Hindon river as agreen belt and banned allconstruction activity in the area.

This area is in the vicinity of premiumlocalities of Ghaziabad like Raj Nagarand Kavi Nagar, located centrally, yetbuffered from the hustle and bustle ofthe busy township of Ghaziabad.

Therefore, the location offers an idealand serene setting for a pollution-freeliving in a well-planned locale withexcellent connectivity to areas likeDelhi, through a proposed Metro link,

and Noida and Greater Noida, by wayof the proposed expressways.

Further, the proposed flyover androad from Hindon Airbase will offerexpress connectivity to Delhi viaWazirabad. As per the latest policydevelopment, the proposed Delhi-Haridwar highway will also passthrough Raj Nagar Extension, furtherenhancing connectivity of the area.

In addition, GDA also has plans tocreate a land bank in excess of 2,000acres for an upcoming IT hubencompassing the proposed 1,284acre SEZ and an Institutional Area on141 acres. To ensure a holisticdevelopment of the area, plans areafoot to develop a sports complex ofinternational standards on about 434acres and a golf course conforming tointernational standards on 245 acres.To expedite the plan process, thedevelopers association is playing acrucial role in convincing thegovernment to invest in developingcivic amenities in the area. Theassociation comprises well-established developers like AshianaHomes, SVP, SG Estates, LandcraftDevelopers Pvt Ltd, KDP InfrastructurePvt Ltd, Shreya Developwell Pvt Ltd,Shree Energy Developers Pvt Ltd,Ajnara Farms & Services, AscentBuildtech, Nitishree Infrastructure Ltdand also includes upcomingdevelopers like High End Infratech,Krishna Asset Reconstruction, MCCBuilders, Quantam Buildwell Pvt Ltdand Shomit Finance Limited.

According to Raj Nagar Extension(NH-58) Builder Association’sspokesperson Manu Garg, “Theinitiative will help achieve modernamenities and luxurious living at

affordable prices.” The association wasborn with an aim to bring theinfrastructure, facilities and amenitiesin the area in a coordinated manner inthe shortest possible time. “Todevelop the area fast,” says Garg, “aneed was felt to liaison with variousgovernment authorities in a morecollective manner.”

Why Raj Nagar Extension? TheDevelopers’ Association lists 15reasons:

1.�First�affordable�city�of�NCR

Our aspiration is that everyone has anindividual shelter. We make thispossible by providing you withaffordable & strategically locatedhomes within Delhi NCR at anamazing low cost. Well-connected &well-planned city Raj Nagar Extn. nowoffers affordable homes rangingbetween Rs.10 lac and 25 lac.Moreover, we facilitate cutting downany burden on your pocket by ourunique affordability plans. Bravo! Nowyou have all the reasons to unfurl yourlongings and bring home what youalways desired.

2.�Easy�connectivity�from�all�over

Wouldn't life be nicer if distancescould shorten… Raj Nagar Extn.location strategically aims at bringingcloseness in distances in thehumdrum of everyday life. Raj NagarExtn., one of Delhi NCR's most wellplanned city has high connectivitywith Delhi as well as Noida (15 min.drive), Greater Noida (35 min.),Vasundhara (10 min.), Indirapuram (10min.), Vaishali (10 min.), Meerut andHapur (40 min.). The construction ofsix-lane expressway connecting G.T.Road with NH-58 has alreadycommenced which will eventually gostraight to Dehradun via Meerut.

Metro too, has also reached thedoorsteps of Raj Nagar Extn.

3.�Well�planned�city

When every thing in life should beplanned, then why shouldn't theplace where you live? Raj Nagar Extn.is one of the most well planned city inDelhi NCR. It has a sophisticatedlifestyle you always cherished. It hasdust-free & nature-friendlyenvironment where happiness issprinkled in the air with joy & serenity.The 24 hours water supply, firefighting-system, ample car parkingspace, round-the-clock-security,earthquake resistant structure, wideroads, makes it a well planned city…at an incredibly affordable budget!

4.�Largest�Green�Belt�of�NCR

As we know there is too much ofpollution due to less greenery inmetro cities and people are sufferingfrom so many health problems. So RajNagar Extn. is one of the plannedcities where the apartments arenestled in 80 % greens, all homesoffer beautiful view of the landscapedgardens, parks & the largest greenbelt of NCR and give the message tohave a clean and green environmentto live healthy and save ourenvironment.

5.�Round-the-clock�security

Raj Nagar Extn. Is one of the plannedcities and has given utmost priority toround the clock security becauseliving in a safe and fearlessenvironment is primary concern of allindividuals. It will help protect yourhome and family with state-of-the-artequipment and round-the-clockmonitoring.

6.�Entertainment�zone

Raj Nagar Extn. is complete with allrecreational and leisure amenities,such as amusement park, health spas,fitness centers, kids play zone, sportszone, in-club house facilities likeswimming pool, basket ball,badminton, tennis, volley ball courtsetc, It is also providing shoppingcomplexes with multiplex.

7.�Shoppers’�Paradise

Raj Nagar Extn. is also providing youthe centralized shopping facilitieswith some of the finest brands,Collection of independent retailstores, services, and parking areasconstructed and maintained by amanagement firm as a unit for anultimate shopping experience.

8.��24x7�Water�and�Power�supply

Raj Nagar Extn. is also implementingon 24x7 water and power supply andmade it possible to have round theclock this facility without any hassle.

9.�Surroundings

Raj Nagar Extn. is also implementing24x7 water and power supply.

10.�Medical�Facilities

Raj Nagar Extn. shows its utmostconcern for its residents by providingthe best medical facilities to save timeby having the world class reputedhospitals within reach. (Approx. 10-15min. drive)

11.�Party�Halls

Raj Nagar Extn. is offering space forParties, Events and Business Meetingsat a very affordable price in luxuriousatmosphere

12.�Jogging�Tracks

If you need a change, want to look &feel good and healthy - start running!For this the planned city is providingJogging Tracks and Fitness trails.

13.�Educational�Institutes�

There are number of Management,Engineering, and Dental Colleges inits close vicinity. For basic education,the city has schools affiliated tovarious education boards like ICSE,ISC, CBSE, and Uttar Pradesh StateBoard.

14.�GDA�Approved

Raj Nagar Extn. is properly approvedby GDA, which facilitates easyfinancing from banks.

15.�Easy�Finance

For this planned city all leadingnationalized and private banks areproviding home loan facilities on veryattractive interest rate.

http://rajnagarextn.com/default.htmlhttp://content.magicbricks.com/raj-nagarextension-%E2%80%93-the-new-area-of-expansion

Raj Nagar Extension

Project Profile

Raj Nagar Extension, locatedon National Highway-58,Ghaziabad is a uniqueexperiment where over 15

developers have come together tomarket projects in an area that isalong a major transport corridor.Unlike most other places, wheredespite geographical clustering,developers largely sell individualprojects, in Raj Nagar Extension, alldevelopers have jointly promoted thelocality, even naming it an extensionof the already established Raj Nagararea of Ghaziabad.

This move was possible because mostprojects in the area fitted into theaffordable housing category andattracted end user-buyers from theneighbouring regions who hadtraditionally been kept out of themarket because of affordability issues.

Today the locality is extremelypopular with middle and lowermiddle class buyers as well as first-time young buyers who are looking atpurchasing a home to stay in. Thestrategy of joint marketing hasworked well as buyers have severaloptions of two- and three-bedroomapartments to choose from.Approximately 10,000 housing unitsare currently being constructed byleading developers such as AjnaraIndia Limited, Ashiana Homes PrivateLimited, Nitishree InfrastructureLimited, S.G Estate Limited, ShreeEnergy Developers and many more.While the projects target providing

'Affordable Homes' to end users,developers are also backing it up withhousing units with bestamenities.Apartment sizes vary from1 BHK (Bedroom/Hall/Kitchen) to 4BHK and a few developers are alsoconstructing in the deluxe categoryto accommodate premium segmentconsumers.

The�Project

Raj Nagar Extension Project is uniquein itself and it's the first project acrossDelhi NCR (National Capital Region)where so many developers havecome together and have constructeddwelling units in a similar category.The project is strategically locatedand takes approximately 15 minutesdriving time from Delhi and NOIDA toreach. Since the area is new and yet tobe developed, a joint thrust isallowing developers at Raj Nagar toprovide the best surroundings andamenities to end users. The quality ofconstruction and ambience are also afocus area for developers, apart fromlow-cost housing.

Affordable�Housing

If we look at the project profile, eventhough the houses fall broadly in theaffordable category, every developeris offering different types ofapartments in terms of area andcategories. (For details refer the Table1). On the whole, apartment sizes varyfrom 400 to 1700 sq ft (1 BHK-4 BHK)in price ranges of Rs 1600- Rs 2000per sq ft. These price ranges are

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much more affordable as comparedto average prices of projects comingup in Noida, Greater Noida andIndirapuram. Most of the developersare offering 10 per cent discount oninaugural prices. This makes Raj NagarExtension a destination for a wideband of middle-class end-users,offering choices ranging from a 1BHKavailable for Rs 12 lakh to a 3BHK forRs 40 lakh, with facilities such asentertainment zones, space forparties, events and businessmeetings, shopping arcades, andjogging tracks.

Early�Possession

The main attraction of Raj NagarExtension currently is that nine out of15 developers active in the region areoffering possession in year 2010.Approximately 4500 housing unitswill be handed over to buyers in thiscalendar year. After the globaleconomic turmoil that also impactedthe Indian markets, most buyers todayprefer apartments that are nearingcompletion. Thus any pocket ofdevelopment with about 4500 ready-built apartments is a focus area that isexpected to attract end-users. Thedevelopers who are handing overpossession this year include:

" Nitishree Infrastructure Limited " Quantum Buildwell Private

Limited" Shree Energy Developers" Ajnara India Limited" S.G Estate Limited" Ashiana Homes Private Limited" K.D.P Infrastructure Private

Limited" Land Craft Developers" SVP Group

These developers are almost readywith their projects and these units willbe ready for possession within thisyear. Most of these projects werelaunched in Year 2008-09. Thus, thefact that developments in this regioncontinued despite the interveningeconomic slowdown has raised theircredibility among end-users. Alsosince a large number of units will beup for possession at the same time,there is expected to be a rush ofoccupancy, which is also expected tolead to robust demand for rentalhousing as well.

There are some natural locationaladvantages to the Raj Nagar project,an assured serene, greendevelopment along a water-frontbeing one of them. The GhaziabadDevelopment Authority (GDA) hasdeclared 500 acres of land along theHindon river as a green belt andbanned all construction activity in thearea. This ensures access tounpolluted greens on one side.

Transport�Links

Also, since the project is along thearterial National Highway 58, thereare no major connectivity issues. TheDelhi Metro's proposed station isexpected to be at touching distance.In addition, it rides the well-developed transport links thatGhaziabad enjoys with the rest of theNCR and the developers only have toensure last-mile connectivity. As ajoint forum they have beencampaigning for the same.

Demographic Profile 4.1 Ghaziabad

Location

Ghaziabad lies on the Grand Trunkroad, approximately a mile east of theHindon river, 19 km from east Delhiand 46 km from south-west Meerut.Other roads lead north-west to Loniand Baghpat and east to Hapur andGarhmukteshwar. Buses run atfrequent intervals from here to Delhi,Meerut, Aligarh, Bulandshahar,Moradabad, Lucknow and to variousother districts.

Basic�Statistics

Ghaziabad is spread over an area of1,148 km. The population of the city isapproximately 33 lakh. Out of thetotal population, 54.8 per cent isurban, with a density of 2887 personsper sq km. The literacy rate is 69.7 percent.

Growth�Rate

Growth of the Ghaziabad local areapopulation follows a sinusoidal graph,except for 1981 where instead ofdecreasing it went up to 112 per centand then followed the previoussequence. The steep increase ingrowth rate during the 1940s was dueto the influx of refugees during thePartition, while that of 1970s was dueto increase of the city limits. Rajapur,an out-growth of GhaziabadMunicipal Board during the 1980s,merged into the Ghaziabad NagarPalika Parishad area in 1994, whenGhaziabad was upgraded to aMunicipal Corporation.

In 1991, the area of Ghaziabad NagarPalika Parishad had 40 wards, which

increased to 60 wards in 2001 and thearea of municipality also increasedfrom 64 sq km to 166 sq km. For the2006 local body elections, 60 wardswere delimited into 80 wards with thetotal municipal area of 166 sq kmremaining the same.

Sub-divisions

The district has been divided into foursub-divisions for the purpose ofrevenue and general administration:Ghaziabad, Hapur, Modinagar andGarhmukteshwar. The centrallysituated tehsil of Ghaziabad has threeparganas, ie Loni, Dasna andJalalabad. The Hapur tehsil lies in theeast of the district and has threeparganas - Hapur, Babugarh andDhaulana. The Modinagar tehsil,which has only one pargana,Jalalabad, is in the northern part. Tothe north-east lies tehsilGarhmukteshwar which comprises oftwo parganas - Garh and Puth.

There are 8 blocks and 6 MunicipalCorporations.

Blocks include Bhojpur, Murad Nagar,Razapur, Loni, Dhaulana, Hapur,Simbhawali and Garhmukteshwar

Municipal Corporations includeModinagar, Murad Nagar, Loni, Hapur,Pilkhuwa and Garhmukteshwar.

Economy

Ghaziabad city is credited with givingthe highest revenue in the state ofUttar Pradesh and second highest inIndia. Next to Kanpur it is one of thelargest industrial cities of Uttar

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Pradesh. The city is also developinglinkages to international markets. Theindustrial development of the city ischaracterised by development ofmedium and large-scale industries onthe outskirts of the city on both sidesof the river Hindon. Industrial areasinclude the Sahibabad Industrial Area,Rajinder Nagar Industrial Area, AnandIndustrial Estate in Trans Hindon Area(THA), Meerut road Industrial Area,New Kavi Nagar Industrial Area,Bulandshahar Industrial Area andSouth Side of Bulandshahar roadIndustrial Area in the CIS Hindon area.Presently, the industrial developmentof the city has slowed down and it islikely to reduce further. This trend hasbeen taken care of in the revised 2021Urban Master Plan.

Future development is visualised inthe housing sector. A sound economicbase has been developed, whichneeds to be maintained. The city isalso an important centre for trade andcommerce in the western UP sub-region. Various products andequipments are supplied to theregional, national and internationalmarkets.

The workforce participation rate andpercentage of workers in thesecondary sector are marginallydeclining but the size of work force inthe city has maintained an increasingtrend. According to the 2001 census,

workforce participation rate is 27.6per cent. In terms of occupationalstructure, the Ghaziabad Nagar Nigamarea is dominated by tertiary servicessector (59% in 1991) in general andspecifically other services sector (30%in 1991). Less than one third ofworkers are engaged in the secondarysector, of which 30 per cent workerswere engaged in the manufacturingsector. The household industriesshowed a decline in 1991, butimproved in 2001.

With rapid real estate developmentand a large population travellingoutside the city to work asprofessionals in the upcomingservices sectors of IT and other whitecollar jobs, this ratio has since beenaltered,. It is expected to keep risingwith the development of neweraffordable housing options that arepulling many residents from EastDelhi, Noida and areas beyondGhaziabad in Uttar Pradesh.

Master�Plan-2021

The Ghaziabad Master Plan-2021, alegal framework for the developmentof Ghaziabad, estimates that 23.77lakh population (22.781 lakh ofGhaziabad, 0.491 lakh of Dasna and0.50 lakh rural population) is expectedto reside in the city by 2021. Theannual growth rate for Master Planpopulation from 2001 to 2021 is 4.5

per cent. The Urban Master Planfurther gives the Land-use Plan for2021 with a balanced distribution ofvarious land uses expected to developfor the estimated population.

The Master Plan 2021 has adopted agross city density of 160 pph?? forGhaziabad and 110 pph for Dasna bythe year 2021. The collective gross citydensity (Ghaziabad, Dasna and rural

population) is 153 pph while the grossresidential density works is 320 pph.The residential area has been furthercategorised into three ranges ofresidential density:

• High density – more than 425 pph,

• Medium density – 325 to 425 pphand

• Low density – less than 325 pph

Land use proposed for 23.77 lakh population

Noida is located in the stateof Uttar Pradesh at thefringe of Delhi, thenational capital of India.

Located at the doorstep of Delhi,Noida is only 14 km from ConnaughtPlace. The 550 m long, eight-laneNoida Toll Bridge across the riverYamuna, connecting Maharani Baghin Delhi to Noida, has further reducedthe distance, time and cost ofcommuting to and from Delhi. Noidahas all the key advantages of Delhiwithout having its disadvantages. Thedevelopment area encompassesabout 20,316 hectares of land,consisting of 81 villages of districtGautam Budh Nagar.

Noida is bounded by NH-24 bye-passin the North, beyond which theGhaziabad Development Area exists;in the East by the River Hindon,beyond which Greater NoidaIndustrial Development Area exists; inthe West by the River Yamuna, beyondwhich are the States of Delhi andHaryana; and in the South is themeeting point of the rivers Yamunaand Hindon.

Residential�Projects

Dream Housing ProjectsAbout 35.66 per cent area of Noida isbeing developed as a residential area.About 4,49,456 sq m land has beenearmarked as residential area, and the

4.2 Noida

rest is meant for group housingprojects. For the working class,engineers/employees of differentestablishments, a project has beenintroduced involving construction of31,035 residential units in duplex, HIG,MIG, LIG and EWS categories. Forsheltering those below the povertyline, under the Shramik Kunj project,4,952 one-room houses have beenconstructed. Plans are also afoot for aproject to construct Senior Citizens'residential complex.

Commercial�Projects

With the creation of commercialcentres in each sector, as a part of itsplanned and synchronousdevelopment, a full-fledgedcommercial complex has beendeveloped in Sector-18, where onecan get everything from ordinarywriting paper and stationery tocomputer-print paper, clothingmaterial to fashionable garments,simple tools and tackles to electricaland electronic goods and appliancesetc.

This area is replete with well-knownbrands such as UCB, Red Tape, HotBreads, Levis, Reebok, Adidas, Parx,Raymond and many more. The large &spacious buildings such as AnsalPlaza, Ocean Plaza, Sab Mall, CentreStage Mall, The Great India Place,Supertech Mall, Vishal Chambers, etc.house leading Indian corporate &multinational business houses. Apartfrom reputed hotels like Nirulas,Shipra Hotel, Savoy & Radisson thereare also a host of restaurants likeMcDonalds, Domino Pizza, Subway,Pizza Hut, Bamboo Shoots, Haveli,Purani Dilli, Kebab Factory, Ice-cube,Ruby's Tuesday, Barista Coffee Shopetc. serving a wide variety of haute

cuisine suiting everyone's culinarytaste.

Noida city center is being developedon a 99 hectare plot. The city centerwill have boundless facilities withinviz. big offices of trade andcommerce, cultural centers, serviceindustries, five star hotels,international standard restaurants,whole-sale outlets, multiplex, centerfor socio-cultural activities,government/semi-governmentoffices, public facilities, residentialblocks & residence cum work-centers,and premises forinformal/unorganised sectors. Oncompletion, the city center isexpected to give a new identity toNoida in the socio-economic, culturaltrade and commercial area.

Institutional

Noida has given top priority to thedevelopment of EducationalInstitutions. Some leading schools,such as Amity International School,Apeejay School, Army Public School,Delhi Public School, Khaitan School,Cambridge School, Somerville Schooletc. are providing school leveleducation facilities to not only thechildren of Noida residents, but alsoto residents of Delhi. A number ofhigher Educational, Management andTechnical Institutions also abound inDelhi. To name a few - NIIT, ITP, InfosysComputer Education Centre, VV GiriLabour Institute, JSS EngineeringCollege, Women's Polytechnic, AmityBusiness School, Amity School ofInformation Technology, AmityInstitute of Biotechnology. LeadingManagement Institutions like IIM isalso making Noida one of its centresof operation.

Many Public Sector Undertakings andother organisations have also madeNoida their head office. The NationalThermal Power Corporation (NTPC),Birla Research Institute, Indian BritishPetroleum (IBP), Gas Authority of IndiaLimited (GAIL), Krishak BharatiCooperative Limited ( KRIBHCO),Pragati Power Corporation Limited(PPCL), National Fertilisers Limited(NFL), Food Corporation of India (FCI),Housing and Urban DevelopmentCorporation (HUDCO), Indian Councilof Medical Research (ICMR), BharatHeavy Electricals Limited (BHEL),Projects Development India Limited(PDIL), Indian Oil Corporation (IOC),Bharat Petroleum (BP), FootwearDesign and Development Institute(FDDI).

An�Ideal�Industrial�Area

In 2009 Noida earmarked 7,10,000 sqm land for different Industries. Thereare 6,014 manufacturing units in thecity. With an investment of Rs12,710crore, these industries provideemployment to over 94,736 people.To help establish industries, manyindustry-friendly simplified measureshave been introduced. As a result,building plans conforming to bye-laws need not wait for approval forcommencement of construction. Therequirement of seeking permission formortgaging "fully paid" industrialplots, have been done away with. Atthe time of transfer of industrialproperty, the requirement of gettingclearance certificate from otherdepartments of the UP Governmenthas been removed.

The Noida Software Technology Park(STP), ranks second in the country interms of export turnover. The InfotechPark (ITP), on 100 acres of land withstate-of-the-art infrastructure, housesabout 152-200 units.

Noida Export Processing Zone (NEPZ)is a 100 per cent export oriented unitand the only land-locked exportprocessing zone in the country. Ithouses electronics, textile,engineering and computer softwareindustries.

Realising its potential, many reputedindustrial houses both, at home andabroad have made Noida the pivot oftheir operations. M/s MotwaneLaboratories, America (Known fortheir reputed medicines) have beenallotted 300 acres of land out of which100 acres will be utilised forestablishing a biotechnologyuniversity. This will be the firstbiotechnology university in Asia andwill give a new lease of life to thebiotechnology students of ourcountry.

Planning

Noida, after acquiring 385 acres ofland, has acquired and developedover 5,888 hectares of land. Duringthe current year, three residentialsectors and two industrial sectorshave been developed. In the decadeahead, 3,400 hectares of land will beacquired and developed, out of which430 hectares have been earmarkedfor residential, 620 hectares forcommercial, 650 hectares of industrialand 200 hectares for institutionalpurposes. Another 300 hectares ofland have been earmarked fordevelopment of recreationalpurposes which will includeentertainment parks and centres formusical & cultural activities. Of this125 hectares of land will be utilisedfor creation of road transport facilitiesincluding bus terminals.

ENTERTAINMENT�&�LEISURE

Amusement�ParkTo light up Noida's skyline,International Recreational Park Ltdhas been allotted a 140-acre plot inSector 38A to develop an amusementpark. This will comprise: FantasyWorld (covering approximately 47.03acres), Bollywood Film Park (13.17acres), Entertainment Village andWorld (22.4 acres), Water World (13.58acres) and parking (11.2 acres). Theremaining 21 acres will be dedicatedto commercial facilities to support the park.

Noida�Habitatat�Centre

Establishment of the NoidaHabitat/Convention Centre (NHC) hasbeen proposed to ensure societal,cultural and intellectual development.Its objective will be to awaken andpromote the environment to society'sintellectual activities. Keeping theconvenience of all the residents,industrialists, businessmen andtraders of the city in mind, the NHCwill run several cultural programmesand intellectual seminars. The Centrewill house a high-level library andworld-class auditorium, conferenceand banquet hall as well as clubfacilities, restaurant, fitness centre,yoga and de-stress centre, amenitiesfor sports and leisure, serviceapartments/rooms, utility store, foodcourt, mini-audio/movie theatre,

function hall, trainingroom/classroom, swimming pool,exhibition hall, art gallery andbusiness centre. On its 15-acre site,the NHC will promote all-roundprogress in the area and become amajor attraction of the city.

Impetus�for�sports�&�games

A stadium situated at Sector 21 isbeing developed to holdinternational-level sports and games.In addition, along the Expressway, asports complex spread over 450 acresin Sector 101 is being planned wherebadminton, table-tennis, weight-lifting and basketball tournamentscan be organised. Further, theYamuna water-body along the OkhlaBarrage has been identified for watersports, especially rowing.

Golf�Course�&�Cultural�Center

Noida also has a Golf course ofinternational standards. The authorityhas also undertaken the constructionof Indira Gandhi Cultural Center,which will serve as a centre for varioussocio-cultural activities of thisintegrated township.

Source:http://www.noidaauthorityonline.com/about-noida.html

Supply-Demand AnalysisAnalysis of property listings posted on MagicBricks.com between March andMay 2010, revealed that supply of residential options for sale was maximum inRaj Nagar Extension, Indirapuram and Vaishali, comprising 82 per cent of thetotal supply in Ghaziabad. Raj Nagar Extension and NH-58 have posted listingspriced lower (Rs 18-20 lakh) than the average in the city (Rs 35-45 lakh) and theaverage area of the available housing options lay within the range of 1000-1500 sq-ft.

For detailed information on the localities which posted maximum listings, refer Fig 1.

CHAPTER

5

Magicbricks.com�Property�Listings�(Top�10�localities):�Mar-May�2010

Locality Property Covered Average %�ofType Area Sale Total

(Approx Price SupplySq�ft) Rs/Lakh

Raj�Nagar�Extension 1200 19 39

Multistorey Apartment 1200 19 39Indirapuram 1400 47 34Multistorey Apartment 1400 51 25Builder Floor Apartment 1200 33 8

Vaishali 1000 37 9

Multistorey Apartment 1300 50 3Builder Floor Apartment 900 31 7

Vasundhara 1500 46 4

Multistorey Apartment 1300 39 2Builder Floor Apartment 950 27 1Residential House 3000 94 1

NH-58 11 19 3

Multistorey Apartment 1100 19 3

Fig�1�




Crossings�Republik 1400 24 3

Multistorey Apartment 1300 24 3Builder Floor Apartment 1700 34 0.5

Ram�Prastha 1600 68 2

Multistorey Apartment 700 23 0.5Builder Floor Apartment 1600 61 2Residential House 2000 147 0.5

Kaushambi 700 26 2


Surya�Nagar 2000 113 1


Chander�Nagar 1800 89 1


Fig�1

The total supply can be analysed in terms of price parameters with the help ofChart 1. Clearly, the bulk of the supply in Ghaziabad comprises housing optionspriced below Rs 25 lakh. Moreover, from Chart 2 it can be inferred that 2 and 3BHK options form a bulk of the housing stock in the city.

Chart�1

Chart�2

DemandRequirements posted on MagicBricks.com between March-May 2010 revealed that 60 per cent of the total demand inGhaziabad was expressed in Indirapuram, Vaishali, Vasundhara and Raj Nagar Extension. This is in tune with the supplydata as maximum residential options are in these areas. Reflecting the trends observed in the listings data, Indirapuram,Vaishali and Vasundhara have experienced demand in a higher price bracket (Rs 30-60 lakh) while in Raj Nagar Extensionand Crossing City, the demand is for more affordable options (Rs 13-19 lakh) and the average size of housing optionswith maximum demand lies in the range 800-1200 sq ft.

Requirements�posted�on�Magicbricks.com�-�Top�10�localities�(Mar-May�2010)

Locality Property Minimum� Maximum Covered %�ofType Price Price Area Total

in�Lakh in�Lakh Approx DemandSq�ft

Indirapuram 34 36 1101 29

Builder Floor Apartment 18 21 1227 6Multistorey Apartment 40 40 1099 21Residential House 20 36 823 2

Vaishali 27 37 906 15

Builder Floor Apartment 23 33 716 8Multistorey Apartment 30 45 1186 5Residential House 20 30 933 1Villa 45 45 1050 1

Vasundhara 31 39 1071 10

Builder Floor Apartment 24 30 945 2Multistorey Apartment 32 41 1095 8Residential House 60 60 1430 0.5

Raj�Nagar�Extension 13 16 1017 6

Multistorey Apartment 13 16 1024 6Residential House 10 20 890 0.5

Crossing�City 16 19 1198 4

Multistorey Apartment 16 19 1198 4

Fig�2

Chart 3 is indicative of the distribution of demand across the various price ranges in Ghaziabad. Clearly, the demand asindicated by requirements posted on Magicbricks.com, is highest in the price range of Rs 25-50 lakh. Further, bulk of thedemand for housing in the city is in the 2 and 3 BHK segment. (Refer Chart 4)

Requirements�posted�at�Magicbricks.com�-�Top�10�localities�(Mar-May�2010)�contd.



Neeti�Khand�1 21 35 900 4


Vaishali�Extension 25 35 900 3

Builder Floor Apartment 22 32 600 2Multistorey Apartment 28 38 1200 2

Kaushambi 24 37 900 3



MBuilder Floor Apartment 20 30 850 0.5Multistorey Apartment 23 40 1050 1Residential House 20 30 850 1


Builder Floor Apartment 20 30 850 0.5Multistorey Apartment 20 43 1000 1Residential House 20 30 800 1

Fig�2

Chart�3

Supply�v/s�Demand

Chart 5 shows the localities with maximum supply in terms of listings postedon Magicbricks.com between Mar-May 2010 and the average sale price ofhousing options in each of these localities.

Chart 6 shows the localities with maximum demand in terms of requirementsposted on Magicbricks.com between Mar-May 2010 and the average pricerange within which these were sought.

Chart�4

Chart�5

Charts 5 and 6 clearly show a mismatch between supply and demand as far asthe price parameter is concerned. While the average price demanded is withinthe range of Rs 20–30 lakh, property listings posted with MagicBricks.comindicate that the available options are within a higher price range (Rs 40 lakhand above).

BHK-wise�analysis

2BHKIn Ghaziabad, the supply of housing stock as indicated by property listings withMagicbricks.com is highest in the 2 BHK category. Raj Nagar Extension andIndirapuram emerged as the top localities, comprising almost 80 per cent ofthe total supply in this segment. The supply comprises mainly multi-storeyapartments with prices ranging between Rs 17-40 lakh. Localities such as RajNagar Extension, NH-58 and Crossings Republik posted properties within lowerranges (Rs 16-20 lakh).Refer Fig 3 for more details

Chart�6

2�BHK�Magicbricks.com�Property�Listings�(Top��localities)�–�(Mar-May2010



Raj�Nagar�Extension O1000 17 50

Multistorey Apartment 1000 17 50Residential House 1000 18 0.5

Indirapuram 1100 32 27


Fig�3



Vaishali 900 36 7

Multistorey Apartment 1000 38 2Builder Floor Apartment 900 35 5Residential House 900 29 0.5

NH-58 900 16 4







Builder Floor Apartment 900 32 1

Sahibabad 900 23 0.5

Multistorey Apartment 1100 23 0.5Builder Floor Apartment 800 23 0.5

Analysis of the 2 BHK demand as indicated by requirements posted by end-users at Magicbricks.com reveals that maximum demand for housing optionsis in Indirapuram, Vaishali and Vasundhara within a price range of Rs 19-45lakh. The demand comprises both multistorey as well as builder floorapartments.

The demand in Raj Nagar Extension, which was the top locality in terms ofsupply, is lower than the more developed localities such as Vaishali andVasundhara. However, at 7 per cent of the total demand in this category, thelocality is gaining popularity, especially for multistorey apartments within amore affordable price bracket (Rs 12-15 lakh). Refer Fig 4.

2�BHK�Requirements�posted�at�Magicbricks.com�-�Top�localities�(Mar-May�2010)





Vaishali 23 35 700 13





Multistorey Apartment 12 15 800 7Residential House 10 20 900 1











Fig�4

3�BHK�

Within the 3 BHK segment, Indirapuram and Raj Nagar Extension emerged asthe top localities with maximum property listings posted at Magicbricks.com.Refer Fig 5.

3�BHK�Magicbricks.com�Property�Listings�Top�10�localities�–�(Mar-May�2010)





Raj�Nagar�Extension 1400 22 38


Vaishali 1300 44 7

Multistorey Apartment 1400 56 3Builder Floor Apartment 1200 35 4Villa 2000 24 0.5


Multistorey Apartment 1500 46 2Builder Floor Apartment 1500 44 0.5Residential House 1600 45 0.5

NH-58 1300 22 3




Ram�Prastha� 1500 58 1



Builder Floor Apartment 1600 64 1Residential House 1800 167 0.5

Kaushambi 1500 73 1

Multistorey Apartment 1400 70 0.5Builder Floor Apartment 1500 74 1



Fig�5

Together they comprise approximately 80 per cent of the total supply in this segment. While Indirapuram, Vaishali andVasundhara posted properties with prices within Rs 35-50 lakh. Raj Nagar Extension, Crossings Republik and NH-58posted more affordable options (Rs 22-35 lakh).

Indirapuram, Vaishali and Vasundhara emerged as the top localities within the 3 BHK segment in terms of the demandposted by end-users at Magicbricks.com. The demand comprises mainly of builder floor and multi-storey apartmentswithin a price range of

Rs 30-60 lakh. However, in upcoming localities such as Raj Nagar Extension and Crossings Republik, the demand is forhousing options at a lower cost (Rs 15-25 lakh) and together they constitute 10 per cent of the total demand in thissegment. Refer Fig 6






Vaishali 30 39 1200 15

Builder Floor Apartment 27 35 1100 5Multistorey Apartment 33 46 1200 6Residential House 20 30 1000 2Villa 37 37 1400 3









Neeti�Khand�1 25 45 1150 3


Gyan�Khand 25 33 1150 3


Fig�6

4�BHK

The 4 BHK supply was higher in developed localities such as Indirapuram,Vaishali and Ramprastha and comprised builder floor and multi-storeyapartments as compared to localities such as Raj Nagar Extension andCrossings Republik which posted high supply in the 2 and 3 BHK segments. Thehousing options are priced between Rs 60 lakh and Rs 1.6 crore.

Echoing the supply trends, the demand in the 4 BHK segment wasconcentrated in the developed localities such as Indirapuram and Vaishali withprice range between Rs 70 lakh and 1 crore. Refer Fig 7 and 8.





Multistorey Apartment 2300 76 42Builder Floor Apartment 2100 58 10

Vaishali 2000 81 11



Builder Floor Apartment 2200 87 10Residential House 2000 95 1






Multistorey Apartment 1800 62 1Residential House 600 48 1

Fig�7






Vaishali 70 90 2200 22


Raj�Nagar 20 20 750 22

Residential House 20 20 750 22

Fig�8

Ghaziabad�Rental�Housing

In Ghaziabad, the supply of rental housing options as indicated by listingsposted on Magicbricks.com between March-May 2010 was highest inIndirapuram which comprised 70 per cent of the total supply. The housingstock comprised builder floor and multi-storey apartments with an averagerental value of Rs 9000-11000 and covered area between 1000 and 1500 sq ft.Refer Fig 9

Magicbricks.com�Property�Listings�(Rent)�-Top�10�localities�(Mar-May�2010)




Builder Floor Apartment 10000 1150 14Multistorey Apartment 13000 1400 55Residential House 11000 1000 2

Vaishali 9000 1000 13






Vaishali�Extension 15000 1900 1


Kaushambi 12000 1300 1

Builder Floor Apartment 12000 1500 0.5Multistorey Apartment 12000 1300 1

Jaipuria�Sunrise�Society 14000 1600 0.5

Multistorey Apartment 14000 1600 0.5

Surya�Nagar 20000 1900 0.5

Builder Floor Apartment 13500 1800 0.5Residential House 26000 2000 0.5

Fig�9

Analysis of the total supply in terms of price parameters can be done with thehelp of Chart 7. Clearly, the bulk of the supply in Ghaziabad comprises housingoptions with rental values between Rs 10,000 and 15,000. Moreover, from Chart8 it can be inferred that 2 and 3 BHK options form a bulk of the rental housingstock in the city.

Chart�7

Chart�8

Requirements for rental property posted on Magicbricks.com echo the supply trends as Indirapuram emerged as themost demanded locality, accounting for approximately 40 per cent of the total rental demand. On an average, thedemand is for builder floor and multi-storey apartments with rental price between Rs 5,000-10,000 and average areademanded between 800 and 1000 sq ft.

Vasundhara and Vaishali too emerged as popular localities as they accounted for 23 per cent of the total demand. Refer Fig 10

Rental�Requirements�posted�at�Magicbricks.com�-�Top�10�localities�(Mar-May�2010)



Indirapuram 7000 9000 1100 41


Vasundhara 5000 8000 700 11


Vaishali 7000 9000 900 10


Neeti�Khand�1 3000 11000 600 9


Abay�Khand 4000 12000 700 4


Neeti�Khand�2 4000 12000 700 4


Kaushambi 7500 11000 2800 3

Builder Floor Apartment 10000 10000 850 0.5Multistorey Apartment 6000 10000 1100 2Residential House 10000 15000 2000 0.5



Gyan�Khand�1 1000 10000 400 3


Gyan�Khand�2 1000 10000 400 3


Jaipuria�Sunrise�Society� 10000 15000 1100 2

Builder Floor Apartment 10000 15000 1200 0.5Multistorey Apartment 10000 15000 1100 1Residential House 10000 15000 1200 0.5

Fig�11

Chart 9 is indicative of the distribution of rental demand across the various price ranges in Ghaziabad. Clearly, thedemand as indicated by requirements posted at Magicbricks.com is highest in the case of housing options with rentalvalues between Rs 5,000-10,000. This is in contrast to the supply which was highest in the Rs 10,000-15,000 rentalhousing bracket. Thus, there would be a shortfall in the market for low cost rental options.

Further, bulk of the demand for housing in the city in the leasing segment, is in the 2 and 3 BHK segment. (Refer Chart 10)

Chart�9

Chart�10

BHK�wise�analysis

Within the 2 BHK segment, maximum supply was witnessed in Indirapuramwhich accounted for approximately 75 per cent of the total supply. The averagerental price lay between Rs 8,000-10,000 for an average area of 900-1100 sq ft.

Other developed localities such as Vaishali and Vasundhara too, postedsignificant listings for apartment rental values in this category. Refer Fig 11

2BHK�Magicbricks.com�Property�Listings�(Rent)�-Top�10�localities(Mar-May�2010)





Vaishali 8500 1000 12

Builder Floor Apartment 8000 950 9Multistorey Apartment 11000 1000 3




Builder Floor Apartment 12000 1500 0.5Multistorey Apartment 12000 1300 1



Fig�11

Analysis of requirements posted at Magicbricks.com within the 2 BHK segment reveal that the demand for rental optionsis highest in Indirapuram, Vasundhara and Vaishali. The demand is for housing options with rental values between Rs6000 and 8000 and covered area between 800 and 1200 sq ft. Refer Fig 12.

2BHK�Rental�Requirements�posted�at�Magicbricks.com�-�Top�10�localities�(Mar-May�2010)



Indirapuram 6000 8000 1000 43


Vasundhara 5000 7500 800 15


Vaishali 7000 9500 900 10


Neeti�Khand�1 2000 10000 500 7


Kaushambi 7500 11000 2700 6


Abay�Khand 1000 10000 400 3


Neeti�Khand�2 1000 10000 400 3


Gyan�Khand�1 1000 10000 400 3


Gyan�Khand�2 1000 10000 400 3


Fig�12

3�BHK

Within the 3 BHK segment, the supply was maximum in Indirapuram whichaccounted for 76 per cent of the total supply. On an average, the rental price laybetween Rs 10,000-15,000 and covered area ranging between 1200 and 2000sq ft. Refer Fig 13

3BHK�Magicbricks.com�Property�Listings�(Rent)�-Top�10�localities(Mar-May�2010)







Vaishali 12000 1500 7

Builder Floor Apartment 9000 1200 4Multistorey Apartment 15000 1800 3

Vaishali�Extension 14500 1900 2






Jaipuria�Sunrise�Society 14000 1600 1


Fig�13




Indirapuram 9000 10000 1300 48


Vasundhara 7000 11000 600 10


Vaishali 10000 12000 1400 10


Neeti�Khand�1 10000 15000 1200 6


Abay�Khand 10000 15000 1200 6


Neeti�Khand�2 10000 15000 1200 6


Jaipuria�Sunrise�Society� 10000 15000 1200 6


Neeti�khand-3 10000 15000 1200 6


Fig�14

Analysis of the requirements posted at Magicbricks.com reveals demand for housing options in Indirapuram, Vasundharaand Vaishali. However, the desired rent is lower (Rs 7000-12000) than the supply. Thus, there exists a gap between thesupply and demand as far as price in concerned due to the lack of low cost rental options in the 3 BHK segment. Refer Fig 14

1�BHK

Within the 1BHK segment, the rental supply was highest in Vaishali whichconstituted 55 per cent of the total supply in this segment. Bulk of the supplycomprised builder floor apartments with average rental value between Rs5,000 and 6,000 and the covered area between 400 and 700 sq ft. Refer Fig 15.

1�BHK�Magicbricks.com�Property�Listings�(Rent)�-Top�10�localities(Mar-May�2010)



Vaishali 5000 450 55






Fig�15




Indirapuram 1700 5500 400 26


Neeti�Khand�1 2000 10000 350 19


Vasundhara 3000 6500 200 10


Vaishali 3000 4000 450 10

Builder Floor Apartment 3000 4000 450 10

Fig�16

Analysis of requirements posted on Magicbricks.com indicates that the demand for 1 BHK housing options is highest inIndirapuram and Neeti Khand. Multistorey apartments with average rent varying between Rs 1,000 and 5,000 withcovered area between 300 and 500 sq ft constitutes the bulk of demand in this segment. Refer Fig 16

Rent�v/s�Sale

Chart 11 compares the supply of sale and rental options in the top localities in Ghaziabad. While developed localitiessuch as Indirapuram, Vaishali and Vasundhara have adequate supply of both sale as well as leasing options, developinglocalities such as Raj Nagar Extension and Crossings Republik fell short in the lease segment. This is due to the fact thatthese localities are under-developed and many projects are yet to grant possession to their owners. However, wherever

Chart�11

there are ready apartments for lease, the demand seems to be robust acrossGhaziabad. Therefore, the fact that there are 20,000 apartments which will behanded over to buyers in 2010 indicates that this will be an active market forlease rentals. Also 2 and 3 BHK, which is the preferred category amongGhaziabad property seekers, is also the dominant category in Raj NagarExtension.

The demand for rental options too, though less than that for sale, is high inlocalities such as Indirapuram and Vasundhara as these are fairly well-developed. Moreover, as with the supply trends, no demand for leasing optionswas witnessed in the developing localities of Raj Nagar extension andCrossings Republik. However, strong demand for sale options in these localitiesis telling of bring future prospects as far as the leasing segment in these areas isconcerned. Refer Chart 12

CHAPTER

6Market Research6.1 Locality Survey Analysis

GHAZIABAD

Brix Research conducted a market survey across Delhi NCR to find out theconsumer’s locality preference in NCR for end use and investment purpose.

In the survey conducted in the Delhi NCR on locality preferences in Ghaziabad,it was found that Indirapuram and Raj Nagar Extension were the mostpreferred locations for end use by most respondents.

About 37 per cent of the respondents chose Raj Nagar Extension as the bestplace for investment as the project has huge future potential.

Transport�&�Connectivity

In terms of infrastructure and connectivity, Indirapuram was ranked first,followed by Kaushambi and Raj Nagar Extension. Indirapuram and Kaushambiare well-connected by public transport compared to other areas in Ghaziabad.

Affordability�vs�Premium

Majority of the end users (56%) opted for affordable homes over premiumhomes. Affordable homes are gaining popularity among end-users who haveincreased investments in these homes.

City�Preference

In the National Capital Region (NCR), Ghaziabad is the most preferred region forinvesting and living compared to others. The city benefits from the fact that it ismore affordable than the rest of the NCR towns and also because of itsproximity and connectivity to the economic centres.

Raj Nagar Extension projects share a good rapport among the people and 40per cent of the respondents find it an excellent project.

Overall it can be concluded that the Raj Nagar Extension project is quitepopular among end-users and is considered a good option for investmentbecause of its affordability and connectivity. Ghaziabad is also a popular cityamong investors and end-users compared to other cities of NCR. Transport andconnectivity remains an issue with some parts of the city but with theupcoming State and Ghaziabad Development Authority initiatives, thesituation is expected to improve in the near future.

6.2 Consumer Survey Analysis

RAJ�NAGAR�EXTENSION

Brix Research conducted a market survey across Delhi NCR to find out theconsumer’s awareness about the Raj Nagar Extension Project and to gauge theirdemand preferences from an upcoming residential project.

Raj Nagar Extension project is quite popular and people across the Delhi NCR areaware about this project. As per the consumer survey conducted by Brix Researchacross the Delhi NCR, it was found that 82 per cent of the respondents have heardabout Raj Nagar Extension project. However, when asked about the developers, amixed response was given. Approximately 44 per cent respondents knew aboutthe developers in the area.

Accessibility�and�Connectivity

Majority of respondents (53%) said that the Metro should be linked directly to theresidential area where the new projects are coming up. This will make commutingeasier and decrease the travelling time. Public transport was the second optionchosen by 30 per cent of the respondents.

Preferred�Features�in�New�Project

Security, power back-up and regular water supply were the preferred services thatthe people are looking for in upcoming residential projects. Shopping malls wereconsidered the most desired infrastructure facility near the residential area.People also preferred that the schools and colleges should be available in thevicinity.

Affordability�Factor

The most affordable price bracket was Rs 20-25 lakh, which is the amount that48 per cent respondents are willing to invest. Most of the respondents (62%)were looking for a home for self use.

Comments�about�Raj�Nagar�Extension

All the above points are present in the Raj Nagar Extension project or are in thepipeline for future development. Most of the people emphasised the need forentertainment hubs either in the project or in the vicinity. Services such asschool, hospitals, local market complexes, parks, multiplexes and space forsenior citizens are the other features that people want in the project. Theavailability of affordable homes in Raj Nagar Extension is well-known amongthe people and they are willing to invest in the project. Few respondents saidreaching the place is a problem but once the connectivity problem is resolved,the project will witness huge demand.

6.3 Property Fair Data Analysis

RAJ�NAGAR�EXTENSION

Magicbricks.com organised a property fair showcasing all the properties onsale at Raj Nagar Extension. A detailed survey was conducted on visitors todetermine the preferences while choosing a property to invest in, as well asthe level of awareness about Raj Nagar Extension as a real estate destination.

Buyer�Profile

Majority of the demand for properties in Raj Nagar Extension is expected fromDelhi and NCR including Ghaziabad and Noida. Within Delhi, bulk of thedemand is from East Delhi. However, a very small percentage of buyers fromFaridabad, Meerut and Modinagar were also interested in the project.

BHK�Preference

The preferred choice of housing is 2 BHK followed by 3 BHK.

Budget

Rs 15-20 lakh is the budget which buyers are willing to shell out for the projectsin Raj Nagar Extension.

Those who are looking for a 2 BHK house are planning within a budget of Rs 15-20 lakh and those hunting for a 3 BHK apartment are maintaining a budget ofRs 20-25 lakh.

The results clearly indicate that buyers in Delhi NCR are the major targetaudience for selling apartments in Raj Nagar Extension. Connectivity to thecapital city and other neighbouring NCR areas could be one reason for highbuyer interest from these areas. Apartments of 2 and 3 BHK in the budgetrange of Rs 15-20 lakh and Rs 20-25 lakh are most preferred. Transport links andthe availability of public transport in the future are also drivers of sale ofbudget properties.

CHAPTER

7Value Analysis

Ghaziabad’s real estate market has witnessed remarkable growth inthe last few decades primarily due to proximity to the NationalCapital Territory of Delhi and Noida in the National Capital Region(NCR). During the boom time Ghaziabad had been designated as

the fastest growing city in the NCR and even featured on Newsweekmagazine’s list of 10 fastest growing cities in the world. Currently, there are avast number of affordable options coming up within this region.

A glance at the annual change in property values of Ghaziabad (locality-wise)shows that values did not undergo any major escalation or depreciation duringthe years 2008-2010, when most cities around the country and the world sawnegative sentiments owing to the economic recession. Capital values weremore-or-less stable and witnessed a marginal change of 5-8 per cent which isvery healthy as compared to other neighbouring cities. Ghaziabad was theonly city in the Delhi NCR which was able to maintain a stable trend inresidential and commercial property values.

A survey conducted by Brix Research revealed that Ghaziabad witnessedtransactions throughout the period of economic slowdown (Jan 2009-May2010). The survey, conducted over a cross-section of users across East and WestDelhi, Ghaziabad and Noida, concluded that more than 50 per cent of the end-users find Ghaziabad a very economical area for investment with immensefuture potential.

With upcoming infrastructure projects, Ghaziabad is expected to witness ahuge housing demand leading to an escalation in real estate values in themedium term. Ghaziabad Development Authority (GDA) is also playing anactive role in developing the city’s social and physical infrastructure. Theproposed Metro project and flyovers (near Mohan Nagar crossing) willenhance connectivity and lead to an escalation in property values.

These measures have primarily been undertaken to service the demands of theexisting localities of Ghaziabad. The newly developing localities, such as RajNagar Extension, have also been riding these upcoming facilities. They arewell-connected to the old localities and are emerging as preferred destinationsfor budget-buyers who typically prefer to stay along transit corridors with easyaccessibility to public transport.

As per market data, projects that are ready for possession or are due forpossession at Raj Nagar Extension witnessed 10-20 per cent appreciationduring the Jan-May 2010 period while they had dropped by 5-10 per centduring the Apr-Dec 2009 period. Since the markets have revived the valueshave reached the launch price levels. Some projects have even registered apremium over the original launch price. Combined with the enhanced level ofenquiries for the project, Raj Nagar Extension seems poised for a price hike.

Current�ScenarioApr-June�2010�period

Residential�Outlook

Ghaziabad’s realty market witnessed appreciation in values during the Apr-June 2010 period as compared to the Jan-Mar2010 period. The residential values registered an average appreciation of 3-5 per cent in the last two months. As perrealtors, upcoming apartment projects are clocking higher demand with appreciation in values as compared to resaleproperties. Brix Research analysis has revealed a 20 per cent escalation in the number of transactions during the April-June 2010 period.

Commercial�Outlook

The commercial sector also stabilised and values witnessed positive trends during the Apr-June 2010 period ascompared to the Jan-Mar 2010 period. Growth with appreciating values can also be witnessed in the retail sector.

The following table and graphs of Ghaziabad show the current residential values:

The following graphs show annual variation in values from Apr 2009 to Mar 2010. It can be seen that the residential andcommercial values have either appreciated or remained stable and the market is on the revival path.

Capital�Values�(June�’10) Rental�Values�(June�’10)

LOCALITY� Apartment� Plot� Builder�Floor�� Apartment�� Builder�Floor�

(Rs/Sqft) (Rs/Sq�yard) (Rs/Sq�ft) (Rs/month) (Rs/month)

Vaishali 3300-4500 45000-55000 2800-5000 8000-13000 8000-10000

Kaushambi 3000-4000 45000-65000 3000-4500 6500-12000 8000-9000

Indirapuram 3000-3500 50000-70000 2600-3500 10000-12000 6500-8000

Vasundhara 2500-3500 40000-50000 2500-2800 7000-10000 5500-8000

NH-24 2000-3000 10000-16000 2000-2200 6000-10000 6000-7000

NH-58 2300-2500 NA NA 6000-10000 NA

Jan-Mar�2010�period


Ghaziabad witnessed stable values during the Jan-Mar 2010 period ascompared to the Oct-Dec 2009 period. In the residential sector, areas such asVasundhara (5%), Indirapuram (10%) and NH-24 (4%) experienced anappreciation in capital values of plots during the same period. Vasundharawitnessed an appreciation of 10 per cent in capital values of apartmentsfollowed by Vaishali with a 9 per cent growth in the Jan-Mar 2010 periodcompared to the Oct-Dec 2009 period.

Commercial�Graphs

The fluctuation in plot values was observed in areas like Indirapuram thatregistered the highest increase of 11 per cent in capital values of plots in theJan-Mar 2010 period compared to the Oct-Dec 2009 period. According to localrealtors, “most of the buyers are investing in affordable homes and low-budgetplotted development.”


Both capital and rental values of commercial property in Ghaziabadappreciated during the Jan-Mar 2010 period compared to the Oct-Dec 2009period. According to market research data, the city offers property at cheaperprices compared to Noida and Greater Noida. This is attracting more and moreinvestors.

Capital value of malls in Vaishali rose by as much as 33 per cent. However, thecapital values in local shopping complexes rose by 3 and 10 per cent inKaushambi and Indirapuram respectively during the Jan-Mar 2010 periodcompared to the

Oct-Dec�2009�period


The Ghaziabad real estate market showed positive trends during the Oct-Dec2009 period. A few transactions took place in both residential and commercialsegment in the city during this period. This was due to increased demand forapartments in the city, as per local realtors. Capital values of apartments andbuilder floors witnessed an increase of approximately 5-10 per cent. However,plot capital values registered a drop owing to lack of demand.


The commercial sector elicited a number of queries but the actual rate oftransactions was low. Space in local shopping complexes witnessed enhanceddemand as compared to malls. Local brokers reveal that there have been small-sized deals in the commercial segment with approximately 5 per centtransactions as compared to the Jul-Sep 2009 period.

In the retail category, a few transactions took place, mainly in the localshopping complexes. Capital and rental values witnessed a 5-10 per centincrease across all categories of retail, during the Oct-Dec 2009 periodcompared to the Apr-Sep 2009 period.

Apr-Sep�2009�period


The real estate property markets of Ghaziabad witnessed mixed trends duringthe Apr-Sep 2009 period. The apartment capital values were stable during the

Apr-Jun 2009 period as compared to the Jan-Mar 2009 period and saw littlefluctuation in the values during the Jul-Sep 2009 period. Few localitieswitnessed appreciation in apartment capital values owing to higher demand.Builder floor capital and rental values did not undergo any change during theApr-Sep 2009 period as compared to the Jan-Mar 2009 period.

Apartment capital values remained stable in Vaishali, Vasundhara, NH-24 andNH-58 during the Apr-Jun 2009 period compared to the Jan-Mar 2009 period.On the other hand, Kaushambi registered an 8 per cent increase andIndirapuram registered a 7 per cent drop in apartment capital values during thesame period. This can be attributed to market corrections taking place in thecity.


The commercial property market of the city has been stagnant during the Apr-Sep 2009 period as compared to the Apr-Sep 2008 period owing to neglecteddemand and no new supply. Office space values decreased in the Apr-Sep 2009period as compared to the Jan-Mar 2009 period, but it was observed that thedecrease in values has resulted in an increase in the number of transactionsduring the Apr-Sep 2009 period as compared to the Apr-Sep 2008 period.

Conclusion

Ghaziabad's residential segment witnessed demand for apartments. Itremained one of the preferred cities with many upcoming housing projects.The recent entry of investors in the market is a positive sign and points towardsa growing market. Residential capital values across categories appreciated,which can be attributed to increase in the number of transactions in newproperties. Most of the developers are coming-up with affordable housingprojects which are more in demand. There are premium projects as well in thepipeline catering to needs of the upper middle class.

The upcoming affordable projects have witnessed 10-12 per cent appreciationduring the Mar-May 2010 period. The projects that are ready for possession in2010 are more in demand as they are ready-to-move-in and are fetching apremium of upto 20 per cent on the launched values.

Ghaziabad's commercial market remained more or less stable. The retailsegment witnessed more footfalls in malls and a marginal increase in valuesduring the Jan-May 2010 period.

Local realtors noted that though the queries have started pouring in, but thecommercial activity is still slow in the city and there is no fresh supply. Seeingthe current response the local realtors anticipate that the market will pick-up inthe next 4-5 months. The upcoming Commonwealth Games and the extensionof the Delhi Metro Rail Corporation's line to Ghaziabad are expected to act asdrivers to the commercial activity in the city.

Transactions are also expected to double in the next 4-5 months. Theresidential segment is expected to grow faster than the commercial sector.City-based realtors expect that with new supply in the pipeline and theongoing infrastructure development, the real estate market will witness growthin the coming months.

Infrastructure, Transport

and Connectivity

8.1 GhaziabadOverview

Ghaziabad can be reached by air, roadand rail. The nearest airport is theIndira Gandhi International airport atDelhi, which is at a distance of about45 km. Ghaziabad, by road, is well-connected on all sides to Delhi, Noida,Hapur, Modinagar, Meerut,Saharanpur and Haridwar, amongother areas. A large number of peoplecommute between Delhi, Noida,Greater Noida and Gurgaon fromGhaziabad every day, for work.

There are bus terminals at MohanNagar, Lohia Nagar, Vasundhara andclose to Meerut Road, from whereUttar Pradesh State Road TransportCorporation (UPSRTC) buses servicecities all over the state. The AnandVihar bus terminal of the DelhiTransport Corporation (DTC) islocated on the border of Ghaziabadand Delhi.

Ghaziabad is a railway junction andseveral lines pass through it. The mainrailway station is situated in themiddle of the old city. Ghaziabad iswell-connected to Delhi and otherneighbouring cities through fast-moving local trains called EMU.Several trains connect Ghaziabad toMeerut, Aligarh, Delhi, New Delhi,Faridabad, Palwal, Mathura, Indore,Ujjain, Loni and other commercial andeconomic hubs, facilitating dailymovement to these areas.

The Delhi Metro line extends toDilshad Garden station, which issituated at the Apsara Border on theoutskirts of the city. At present, itservices the areas of Rajendra Nagarand Shalimar Garden. This Line willfurther be extended to New BusStand Ghaziabad by 2012. TheDwarka Sector-9 line was extended toAnand Vihar and will now reachVaishali by September 2010, beforethe Commonwealth Games.

Roads

Ghaziabad is connected to Meerut bymetalled road and other roads leadnorth-west to Loni and Baghpat andeast to Hapur and Garhukteshwar.Buses run at frequent intervals fromhere to Delhi, Meerut, Aligarh,Bulandshahar, Moradabad, Lucknowand to other districts in the state too.

Railway

It is an important station of theNorthern Railways where railway linesfrom Delhi to Kolkata, Moradabad andSaharanpur meet, connecting it withmany other important cities andregions in India.

Integrated�Rail-cum-Bus-TransitProject�(IRBT)

There is a proposal to link Delhi(Shahdara) with Ghaziabad throughIRBT system and a token budgetprovision of Rs 1,000 was made in the

CHAPTER

8

Financial Year 2005-2006. However, nobudget provision has been made inthe current financial year. Thus,implementation of the project has notyet started but there is an alternativeproposal to extend the Delhi MetroRail from Delhi to Ghaziabad. Theissue relating to the suitability of IRBTvis-à-vis metro rail in terms of cost-effectiveness is under considerationby the Planning Commission and theNational Capital Region PlanningBoard. In any case, one of the projectswill have to be taken up during the11th Five Year Plan to provide rapidmass transportation system betweenDelhi and Ghaziabad.

Metro

The Ghaziabad DevelopmentAuthority (GDA), with the permissionof the government of Uttar Pradesh,has taken-over the metro rail projectin the city, which will connectdifferent parts of Ghaziabad to themetro rail network of the NationalCapital Region. A MoU has already

been signed between the GDA andthe Delhi Metro Rail Corporation.Under the agreement the project willbe executed in three phases:

- Phase�I:�Rajiv Chowk - Vaishali

- Phase�II: Vaishali – Indirapuram - Mehrauli

- Phase�III: ISBT (Delhi) – Bus Stand Ghaziabad

The GDA is playing an active role indeveloping the city’s social andphysical infrastructure. Projects on-board include - proposed metroproject, construction of 17 newflyovers for signal-free travel, a 6/8-lane expressway for fasterconnectivity and a 7,800 MW powergeneration project at Dadri, which willprovide uninterrupted power supplyto the area.

(Sources:�Housing�and�Urban�Planning�Department�-�Comments�on�the�Approach�Paper�to�11th�Five�Year�Plan�-�http://awas.up.nic.in/�andhttp//www.gdaghaziabad.com/index.php)

In November 2007, 15 developers inthe Ghaziabad region formed RajNagar Extension (NH-58) Developer'sAssociation (RNEDA) in a collectiveeffort to develop the area. Each ofthese builders had a stake in theregion’s development as they hadongoing projects in the concernedarea. The Association terms it the“most well-planned city in the NCR,having good connectivity with Delhi,Noida, Greater Noida, Vasundhara,Indirapuram, Vaishali, Meerut andHapur.”

RNEDA aims to expedite developmentin the region, including connectingroads to Delhi, Noida, Greater Noidaand Meerut, water supply, drainagesystem and electricity connection. Theassociation comprises of developerssuch as Ashiana Homes, SVP Group,SG Estates, Landcraft Developers PvtLtd, KDP Infrastructure Pvt Ltd, ShreeEnergy Developers Pvt Ltd, AjnaraIndia Ltd, Ascent Buildtech and alsoincludes upcoming developers suchas High-End Infratech, Krishna AssetReconstruction, MCC Builders,Quantam Buildwell Pvt Ltd andShomit Finance Limited.

Raj Nagar Extension is 25 km fromDelhi’s Central Business District ofConnaught Place and only 12 km fromthe Delhi-UP border. Since the area isyet to be developed, it has given theGhaziabad Development Authorityand the interested developers achance to carry on planneddevelopment in the area, even beforethe occupancy begins. Explains amember of the Association, “Soon, thearea will be connected through a six-lane expressway connecting GT Roadwith NH-58, which eventually goes

straight to Dehradun via Meerut. Justa km-long stretch is yet to becompleted, which is expected to becompleted within a month.” Becauseof this connectivity, travel time toDelhi as well as Noida from the RajNagar Extension has been reduced to30 minutes; 10 minutes toVasundhara, 15 minutes each toIndirapuram and Vaishali.

The Metro Rail is also on the verge ofknocking the doors of Raj NagarExtension when it enters Ghaziabad.This is expected to help residents andtransform the area. The project is tobe completed in three phases and theMOU has already been signed withthe Delhi Metro Rail Corporation.

Phase�I: Rajiv Chowk - Vaishali

Phase�II:�Vaishali – Indirapuram -Mehrauli

Phase�III: ISBT (Delhi) – Bus StandGhaziabad

Connectivity is a key to thedevelopment of an area, especially fora real estate housing destination in ametro city like Delhi. Betterconnectivity not only reducescommuting time but also bringsdown the cost of travel. If a newconnecting road is developedbecause of rapid development of thecity, which not only speeds up trafficbut also reduces distance, it couldprove a boon to a far-flung area. RajNagar Extension on National Highway58 (connecting NCR to Dehradun viaMeerut) is going to benefit by thenew roads, which are beingconstructed to de-congest the trafficflow in the city.

8.2 Raj Nagar Extension

Because of the 2010 CommonwealthGames, various city authorities of theNCR are implementing a number ofprojects to decongest traffic andspeed-up flow of vehicularmovement. A number of flyovers arebeing built on various roadsconnecting central Delhi to GT Roadvia the Dabur Crossing and AnandVihar Inter-state Bus Terminal.

To reduce the traffic load on theexisting roads, authorities aredeveloping a new connecting roadalong the Hindon canal, whichconnects the Noida toll bridge nearthe Metro station at Ashok Nagar inDelhi on one end to the GT Road justbefore the bridge on Hindon River onthe other. This will enable one tocompletely bye-pass the congestionof Mohan Nagar in reaching Raj NagarExtension from Delhi, Noida, Vaishali,Vasundhara and Indirapuram.

Because of these roads, if one travelsalong the Hindon canal, the distanceto South Delhi via the toll road isreduced by almost 30 per cent, whilethe distance to Noida Sector 63 viaIndirapuram has reduced by almost50 per cent. Raj Nagar is now onlyapproximately 12 km from NoidaSector 63, and about 15 km from theNoida toll bridge. The new approachroad has brought down travel time toless than half because of smooth flowof traffic. Further, the proposedflyover and road from Hindon airbasewill offer express connectivity to Delhi

via Wazirabad. As per the latest policydevelopment, the proposed Delhi-Haridwar highway will also passthrough Raj Nagar Extension, furtherenhancing connectivity of the area.

As planned by the Uttar Pradeshgovernment, a girl’s hostel, avocational college, and a traininginstitute have also been announced inthe vicinity of Raj Nagar Extension.Work on these projects has alreadybegun and will acceleratedevelopment in the area. Fifteenrealty firms are developing over10,000 apartments in the area.

To sum it up, Raj Nagar Extension willhave multiple lanes of connectivitywith Delhi and nearby areas by way ofthe proposed expressway, flyover andMetro link. With real estate at Noida,Greater Noida and Indirapuram andsurrounding locations quotingpremium rates, this location offers anopportunity to buy at today’s prices atthe entry level. However, once all theinfrastructure connectivity isestablished, there is excellent futurescope of capital appreciation, withadditional benefits such as well-planned location with excellentconnectivity and a huge green buffer.

Source:http://rajnagarextn.com/default.html

http://content.magicbricks.com/raj-nagar-extension-%E2%80%93-the-new-area-of-expansion

Ghaziabad’s proximity toDelhi, Noida and GreaterNoida has made it one of themost preferred real estate

investment hubs in the National CapitalRegion (NCR). Affordability vis-à-visGurgaon, Noida and Delhi has led to asurge in demand for property in thecity. The rapidly developing physicaland transport infrastructure and theaffordability in property valuescompared to other developinglocalities in the NCR has attractedinvestors and end-users.

With the rise in demand for newresidential sectors there has been arapid growth in the number of newlocalities such as Indirapuram, Vaishali,Vasundhara and Kaushambi. Raj NagarExtension is the latest entrant inGhaziabad’s residential developmentcanvas and is fast growing on the backof existing and upcoming cityinfrastructure. With the launch ofpremium and affordable residentialprojects, a wide variety of options areavailable.

Transport�&�Connectivity

The six-lane link road between theHindon Bridge and Ghaziabad, acts as abye-pass for NH-58. This combined withthe reserved green belt has led topollution-free, serene and affordablelocality. Further completion of theproposed highway projects is expectedto reduce travel time and enhanceconnectivity leading to greater end-user demand. This should translate intoan increase in rental values and greateroccupancy.

Raj Nagar Extension is about 15 kmfrom the Delhi-UP border. With theproposed Metro line that would serviceRaj Nagar Extension being approved,the area is expected to witness a seachange in high speed travel anddevelopment activities.

Affordability

Being under development and yet tobe occupied, the capital values ofapartments in Raj Nagar Extension arecurrently far more affordable thanthose in Indirapuram, Vaishali andVasundhara. Also, to escalate thedevelopment work in Raj NagarExtension, builders have formed anassociation that is collaborating withthe Ghaziabad Development Authorityto speed up the development work.This is critical in ensuring thatoccupancy picks up immediately afterpossession has been handed over. TheDevelopers Association estimates thatover 20,000 apartments would behanded over in 2010 alone. Thesemeasures have all helped in attractinghuge buyer interest.

Strong�Branding

However, multiple offline and onlinesurveys conducted in the Delhi NCRshows that the level of brandawareness about Raj Nagar Extensionamong buyers is fairly high. Clearlybrand Raj Nagar Extension has evolvedand is expected to pay dividends intothe future.

Value�Appreciation

The Raj Nagar Developers Associationmaintains that the locality is going tobe one of the next big investmentdestinations in the Delhi NCR region inthe next 8-10 years. However, asoccupancy rises after the first wave ofpossessions, prices too are expected torise. Even the completion ofinfrastructure projects is expected tolead to a rise in property values. Thequarter April-June 2010 has alreadywitnessed a 5-7 per cent rise inproperty values as projects nearcompletion. This trend is expected tostabilise into the future.

Future OutlookCHAPTER

9

DISCLAIMERThe report compiled by Brix Research is intendedto provide indicative information on the Ghaziabad market. Brix Research gives no warranty, express or implied, as to the accuracy, reliability and completeness of any informationand does not accept any liability on the information which may or may not be subject tochange from time to time due to governmentalor non-governmental regulations/directions.

Information provided in this report shall not be reproduced, published, re-sold or otherwise distributed in any medium without the prior written permission of Brix Research. However,limited portions of the information provided inthis report can be quoted in occasional reports, articles, and studies without any written permission from Brix Research. This should bedone with a clear acknowledgement to Brix Research as the source of information. The acknowledgement should mention the name ofthe report, month of release and “Brix Research,Times Business Solutions Ltd”.

NOTES

Documents

Demand-Supply Assessment of Raj Nagar Extensionproperty.magicbricks.com/.../rajnagar-extension... · 8.1 Ghaziabad 8.2 Raj Nagar Extension CHAPTER 9: Future Outlook ANNEXURES Annexure