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.