Faridabad Real Estate Market:A Better Prospect
The largest city in Haryana, Faridabad is a pure industrial town, with the majority of employment opportunities emerging from the industrial sector only. Faridabad real estate market possesses a strategic and good geographical location due to its proximity to all the major cities in NCR, namely Delhi, Gurgaon and Noida.
Faridabad property market mainly has affordable housing in low ticket-size projects, with a few luxury projects. Most of the apartments in Faridabad are low and medium-sized projects. It is one of the most affordable markets in the NCR belt. It has more end users than investors. The market is dominated by the middle-income users.
Lots of new residential and commercial projects have come up. Major Developers such as Omaxe, BPTP, Puri Construction, Piyush Heights, Eros Group, and Ansals have noticeable presence in the region.
The average ticket size for apartments in Faridabad is around Rs. 3000-4000/sq. ft. Faridabad has been consistent in terms of the real estate price appreciation, with a price appreciation of about 8 to 10 per cent over the last couple of years for housing projects.
Not many new projects have been launched in Faridabad over the past few years due to slowdown. The demand for housing in Faridabad has been on the slower side because of the absence of an inherent ‘pull’ factor. Unlike Noida and Gurgaon, it could never create appeal for corporates, so there was little demand for office spaces.
Nehrapur or Greater Faridabad is considered to be a potential market in terms of returns on real estate investments. Nehrapur’s Kundli-Manesar-Palwal Expressway connects the city with Delhi and Gurgaon. Another advantage is that unlike Noida where the nature of ownership is leasehold, the nature of ownership of property in Nehrapur is freehold. A lot of investors are expressing interest in this region and many other such areas in Faridabad. Many major builders such as BPTP, Omaxe, Puri, Eros and Ansals area also developing properties in this area.
Surajkund has also better prospects as Its commercial real estate is booming. Another developing area that is experiencing a good price appreciation is Dayal Basti. It is close to NIT and Ballabgarh and has good schools, colleges and hospitals.
Faridabad’s improved connectivity with key cities in NCR, has been favourable for its realty market. The new metro connecting the city to Delhi is operational from September 2015. The real estate market in Faridabad may now boom with improved infrastructure like Gurgaon-Faridabad expressway, six-lane Mathura Road, expansion of metro rail, and the Faridabad-Noida-Gaziabad expressway. This region’s real estate market is going to witness additional impetus on account of the improved connectivity brought by the KMP Expressway, FNG flyover and the Badarpur flyover.
A metro connecting Gurgaon with Faridabad is set to begin soon. Its proximity to Gurgaon will also give it access to the other city’s advantages, including its BPO, IT companies and ITES sectors, its investors and other factors.
The city topped the smart cities list in Delhi-NCR with 95 points, has got real estate developers and consultants excited. Under the smart cities scheme the basic infrastructure undergoes improvement-there are safe pedestrian paths, controlled vehicular movement, good drainage systems, drinking water supply etc.
Faridabad could in all likelihood be racing ahead of its rich neighbours. Known for core industries, the city is likely to see a shift towards service industries, outsourcing, banking etc.
Faridabad has the potential, and there are many factors favouring Faridabad but it would need to address many issues. The biggest issue with Faridabad has always been the poor connectivity. Another issue is that Faridabad has employees from the manufacturing sector with less disposable income. Faridabad has been an old industrial town and recently has opened up to service industries, but the IT population’s choice has been Gurgaon due to its better infrastructure and proximity to the airport.
Despite these many issues, Faridabad’s real estate market has the potential and is all set to receive a boost due to its favourable geographical location and its many new opportunities in terms of employment and development. Real estate experts are of the view that the market will uplift once road connectivity and corporate activity improves.
Faridabad is the city to watch out for in the coming years. In the next five years city’s real estate development is expected to catch up with other NCR’s real estate market such as Noida and Gurgaon.
Ajay Verma is a founder and writer of The Housing World, a real estate and mortgage news website. He brings with him 20+ years of rich experience in the real estate and mortgage industries. He has worked in senior roles in Delhi and NCR in the above-mentioned sectors.