With better connectivity, Faridabad real estate market set to boom

The Hindu

Faridabad has suffered on account of poor infrastructure and bad connectivity, and has failed to register the kind of growth witnessed in neighbouring Gurgaon and Noida. File Photo: Shiv Kumar Pushpakar

Despite its proximity to Delhi, Gurgaon, and Noida, and with fairly good connectivity with its neighbouring cities by road and rail routes, the property market in Faridabad has not kept pace with the real estate market in other National Capital Region (NCR) cities.

In spite of all its potential to become a ‘model city’, Faridabad has suffered on account of poor infrastructure and bad connectivity, and has failed to register the kind of growth witnessed in neighbouring Gurgaon and Noida.

“The biggest issue with Faridabad has been the poor connectivity. The information technology industry chose Gurgaon over Faridabad because of its better connectivity with Delhi and proximity to airport. Since young people with high disposable income work in IT industry, it had a ripple effect on the real estate market and led to mushrooming of shopping malls and spurred the demand for housing. Faridabad, on the other hand, has mostly manufacturing industry employing people with less disposable income,” said SPR Buildtech Ltd director Nalin Saluja.

However, the real estate market in Faridabad is now booming with improved infrastructure like Gurgaon-Faridabad expressway, six-lane Mathura Road, expansion of metro rail, and laying of foundation stone for the Faridabad-Noida-Gaziabad expressway.

“Though not many new projects have been launched over the past two years due to slowdown, more than 70 per cent inventory in 30 residential projects in Greater Faridabad is already sold. Also over half a dozen IT park projects are at the advanced stage of completion in Faridabad and the market is expected to boom with their completion. In next few years, we hope the Faridabad market to grow at a rate faster than Noida,” said Mr. Saluja.

The real estate sector also has a lot of hopes and expectations from the new government. “Today when the government is working on the Master Plan 2031, we are sorry to say that even the developments proposed under the Master Plan 1991 are yet to be implemented. We hope that the new government initiate the development of physical and social infrastructure in the city,” said J.P. Gupta, vice-president, Confederation of Real Estate Developers’ Associations of India (CREDAI), NCR, Haryana.

Some of the major demands of the CREDAI, NCR, Haryana, Faridabad, include construction of stadium and commercial establishments in Sector 79 as per the Master Plan 1991, up-gradation of the proposed government hospital into medical college, tax rebate to industrial units in Ballabgarh, and construction of sewage treatment plant for Sector 75 to 89.

e-registration of property launched in Haryana

Haryana Chief Minister Manohar Lal Khattar on Tuesday launched e-registration of properties in all the 130 tehsil and sub-tehsils of the State to mark the completion of 100 days of his government.

Declaring that he wanted to provide a corruption-free governance in the State, Mr Khattar said already a CM Window has been opened in every district headquarter for registration of complaints and receiving suggestions and a CM Portal has been opened at the Secretariat. Now, he said, a CM Dashboard is also being opened for monitoring the working of various departments online.

The Chief Minister also directed all Deputy Commissioners to now work towards implementing e-stamping in all the districts by end of June 2015. He said to take e-governance to the villages, broadband connectivity is being provided to them and in the first phase 2,000 villages would be targeted and by September 2016 another 4,000 villages would be covered.

He said 500 Common Service Centres would also be opened by March end and another 1,000 would be added thereafter to take all essential services to the doorsteps of the masses. Using technology, he said, the e-pension scheme has also been launched and old age pension would increase by Rs 200 every year for the next five years. Even registration of birth and death would be made online soon.

Speaking about the achievements of his government, Mr Khattar said the State has launched its own schemes to match three important schemes of the Centre – namely Swachh Bharat Abhiyan cleanliness programme, Beti Bachao Beti Padhao girl child scheme and Make in India campaign.

Noting that Haryana has taken the lead in ending female foeticide, the CM said while 10 ultrasound machines were sealed, the licences of 13 centres were cancelled following detection of violations. He said Haryana has also launched its sanitation programme and all schools would be provided with toilets. Similarly, by October 2019 all village households would also have toilet facilities.

For promoting industry, Haryana would be coming out with a new industrial policy in March which would ensure equitable growth of all parts of the State.

Mr Khattar also announced an increase in ex gratia for soldiers and those killed in blasts to Rs 20 lakh. Besides, he said, depending on level of disability Rs 5 lakh, Rs 10 lakh and Rs 15 lakh would be paid.

For crime control, Mr Khattar said a portal has been launched to allow for online registration of complaints; the concept of zero FIR has been promoted and 500 motorcycles would be procured for improving patrolling.

On other plans, Mr Khattar said all Aadhaar cards would be issued by June 30 and for this 300 permanent centres have been opened. For improving health services, he said 94 new health officials appointed and a Medical University has been planned in Karnal.

Gurgaon to gain

For Gurgaon, Mr Khattar announced that Rs 100 crore would be spent for purchase of modern fire-fighting equipment. He said under the expansion plan of the Metro, the Faridabad-Gurgaon Metro link has been proposed and another line has been proposed to the Millennium City from Sector 21 Dwarka in Delhi.

With better connectivity, Faridabad real estate market set to boom

Despite its proximity to Delhi, Gurgaon, and Noida, and with fairly good connectivity with its neighbouring cities by road and rail routes, the property market in Faridabad has not kept pace with the real estate market in other National Capital Region (NCR) cities.

In spite of all its potential to become a ‘model city’, Faridabad has suffered on account of poor infrastructure and bad connectivity, and has failed to register the kind of growth witnessed in neighbouring Gurgaon and Noida. 

“The biggest issue with Faridabad has been the poor connectivity. The information technology industry chose Gurgaon over Faridabad because of its better connectivity with Delhi and proximity to airport. Since young people with high disposable income work in IT industry, it had a ripple effect on the real estate market and led to mushrooming of shopping malls and spurred the demand for housing. Faridabad, on the other hand, has mostly manufacturing industry employing people with less disposable income,” said SPR Buildtech Ltd director Nalin Saluja.

However, the real estate market in Faridabad is now booming with improved infrastructure like Gurgaon-Faridabad expressway, six-lane Mathura Road, expansion of metro rail, and laying of foundation stone for the Faridabad-Noida-Gaziabad expressway.

“Though not many new projects have been launched over the past two years due to slowdown, more than 70 per cent inventory in 30 residential projects in Greater Faridabad is already sold. Also over half a dozen IT park projects are at the advanced stage of completion in Faridabad and the market is expected to boom with their completion. In next few years, we hope the Faridabad market to grow at a rate faster than Noida,” said Mr. Saluja.

The real estate sector also has a lot of hopes and expectations from the new government. “Today when the government is working on the Master Plan 2031, we are sorry to say that even the developments proposed under the Master Plan 1991 are yet to be implemented. We hope that the new government initiate the development of physical and social infrastructure in the city,” said J.P. Gupta, vice-president, Confederation of Real Estate Developers’ Associations of India (CREDAI), NCR, Haryana.

Some of the major demands of the CREDAI, NCR, Haryana, Faridabad, include construction of stadium and commercial establishments in Sector 79 as per the Master Plan 1991, up-gradation of the proposed government hospital into medical college, tax rebate to industrial units in Ballabgarh, and construction of sewage treatment plant for Sector 75 to 89.

Govt as property dealer?

Unhappy with the Rewari land acquisition experience, Chief Minister Manohar Lal Khattar is reportedly toying with the idea of building a land bank for future projects. The Rewari farmers are within their right to decide whether to sell their land and at what price. Under the law their consent is essential even for buying land for a “public purpose”. It is not easy to make a farmer part with his land because, apart from the liberal compensation provided in the land acquisition law, he is often emotionally attached to the land and village of his forefathers. Relocation is a challenge many try to duck. 

  The land bank idea has worked in states having large tracts of under-used or barren land cheaply and conveniently available. When the Tatas wanted to shift the Nano unit following protests in West Bengal, the then Gujarat Chief Minister, Narendra Modi, was quick to grab the project by offering a hassle-free land transfer. Punjab too has tried to create a land bank but without much success. A new industrial township was set up at Goindwal Sahib and even rail connectivity was provided, but it has failed to attract any major industry other than a power unit. Focal plants were developed as industrial hubs to decongest cities but, again, without success. Only small units came up here and there. Finally, post-liberalisation reforms, the role of the government has shrunk to that of a facilitator. Should it play the role of a property dealer or developer - buying land cheap, developing and selling it at a premium?

  Land has become very expensive in Punjab and Haryana. Even if the government acquires land, prospective industrialists may not approve of it, objecting to its location, price or quality. Despite liberal tax concessions and quick approvals for setting up special economic zones, most of these have not materialised. Industrialists want to use the land for real estate purposes. Khattar should provide corruption-free and efficient governance, build infrastructure, make land transfers faster and transparent, and create a congenial environment for manufacturing, and leave the rest to industrialists.