With the presence of prominent builders, the 250-km stretch between Delhi and Jaipur has become a hotbed for real estate development. With massive growth opportunities in the realty sector of the area, especially the residential segment, the Jaipur Development Authority (JDA) is gearing up to provide more houses to the people of the city by making amendments to the 2025 Master Plan of Jaipur
Highways Connecting various towns and cities serve a dual purpose. Not only do they provide good connectivity and accessibility, they also serve as nodes that spur development. So Jaipur is no exception as far as the growth prospect in real estate is concerned
Areas like Manesar, Dharuhera, Bhiwadi, Neemrana, Kotputli and Alwar have become buzz words for both investors as well as developers. Like most of the state capitals in the country,Jaipur too has tremendous potential for growth as many corporate from auto, banking and financial services,IT and ITeS sectors have drawn up plans to setup their offices in Tier II cities in India.
“We are creating a land bank on Google maps so that people can see where we have the big land plots. This will enable people to become familiar with the infrastructure such as approaching roads etc without actually visiting the place,” says Shikhar Agrawal, commissioner,Jaipur Development Authority (JDA).
“We are also coming up with lots of residential schemes for people who want houses or even for their corporate enterprises. In the last four years there weren’t any schemes. In the last four months, we have brought in four schemes,and in the next two months we will come out with 7-8 more schemes so that people get houses at affordable prices,” adds Agrawal.
The Authority is also preparing some plot schemes for the economically weaker sections. “We are also planning land plots for the weaker sections for whom we are creating a database too.By October this year, we are planning 5,000 such plots for the economically weak,” he says.
According to media reports,a proposal has been made to provide relaxations and to allow realtors to develop housing projects in U2 areas in the Master Plan. The U2 areas are defined as areas of immediate influence of U1 and the satellite towns. The U1 area refers to the high density urbanizable area where no land is available for new residential projects. Since the U2 area is mostly rural with most of the land being vacant and unused, they can be used to develop realty.
According to the JDA, amendments in the Master Plan will now allow realty developers to launch and construct housing schemes in less than 10 hectares of land which was not the case earlier in the U2 areas. A final nod on proposal from the state government is awaited.
“We have U2 areas under which no colony development can be done in areas less than 10 hectares. We are planning to reduce it. We have moved a proposal on this and it will bring in investment in areas smaller than 10 hectares,” says agarwal.
Gurgaon, being closer to Delhi and as part of NCR, has seen spiralling growth in real estate development. Prominent township projects are coming up on NH-8 beyond the second toll plaza. The major developers active there include Vatika (Vatika City Next), DLF (Garden City) and Orris Infrastructure. Other major developers on this stretch are Godrej,Emaar MGF, 3C, Ansal API and Spaze among others.
In close proximity of Jaipur, Praxis, one of the prominent developers in the area, has three prospective projects Bella Vista (Bhiwadi), Garden City (Bhiwadi) and Holiday Farms & Resorts (Jaipur). Praxis claims the Holiday Farms project has the finest holiday homes amid beautifuL natural settings and ambience.
“Situated in close vicinity of Jaipur,based in Achrol on the Jaipur-Delhi highway NH-8, Praxis Holiday Farms is slated to redefine and set new benchmarks in affluence and elegance amongst living spaces. It is a ultimate fantasy to have a farm house surrounded by the hills, tucked away far from the madding crowd,in the lap of serenity and scenic views,”said Neeraj Mishra,Director,Praxis.
For affordable and mid-income housing segments in these areas, there is a great growth opportunity as a majority of the demand is directed towards these segments.
“Healthy demand can be expected for the right kind of project with the correct price points. Towns like Dharuhera, Bhiwadi and Alwar can expect to see rise in local demand as the first two are major industrial centres and will see some part of the Delhi Mumbai Industrial Corridor (DMIC) development, adding to the infrastructure in these towns,” says a JLL report.
On why Jaipur was selected, Mishra said: “Being one of the most beautiful of cities, a world heritage site and in close proximity to NCR, the demand will grow in terms of tourism, real estate, export, gems and jewellery, education, infrastructure, and industrial development. I think as per extensive government growth plans in J DA MDP-202 5 vision, Jaipur will take its position globally within 10 years.”
The Authority is focusing on road sector projects to add value to these two promising segments – affordable and mid-income housing projects.
According to Agrawal, the Authority has a Ring Road project connecting two roads- Agra towards the west of Jaipur and Ajmer towards the east. “This project is stuck for the last so many years although work is in an advanced stage wherever land acquisition has been done. No doubt, this will create a lot of value. The new area will open up for development and the traffic movement will be smooth there,” Agrawal says, adding that the Authority also has sector roads which connect different parts of the city including the rural areas.
“In order to improve connectivity between the various areas we are constructing a large number of sector roads. Apart from that, we are also building 30 more parks for the benefit of residents therein. In Achrol, there was a scheme called Science Tech City which never took off due to lack of proper planning. Now, we are replanning the whole scheme to develop the entire infrastructure of the location – roads, power , water, etc,” he adds
However, experts believe that investors find it lucrative to buy apartments in these complexes, for it has been observed that those with a longer investment horizon benefit from a better rate of return when compared to those with shorter investment horizons.
“Residential complexes should be the option of choice for buyers with a penchant for lifestyle living and a willingness to forego a certain degree of local community. Young couples with children prefer complexes over others form of residential development despite the higher prices, ” says Ashutosh Limaye, head (Research & REIS), JLL India.
According to the JLL report, the government of Rajasthan has already notified the 203 1 Master Plan for the Shahjahanpur – Neemrna – Behror Urban Complex. A Korean Dedicated Manufacturing Zone has already been proposed to be set up through an agreement between RICO and the Korean firms’ nodal body Kotra.
“With industrial growth acting as a pull factor, real estate development across the office, retail and residential asset classes is likely to find greater traction going forward,” says the report.
Last but not the least, Jaipur realty will see an impetus with more projects being launched and generating good demand. The creation of new investment regions is likely to spur the real estate growth, especially residential segment in these corridors.
With infrastructure development lagging behind in the emerging residential corridors in Jaipur realty sector , prices are operating on speculation of future appreciation and investor sentiment. For example, Manesar, by virtue of its locational advantages, has also seen healthy appreciation in residential projects.
“Manesar being a well-established industrial town and considered a part of Gurgaon, it has led to significant price increments in housing projects located here. Dharuhera and Bhiwadi, largely catering to affordable
housing in terms of amenities and pricing, prices there have remained largely stable, showing only range-bound growth in projects which are nearing completion,” says Rohan Sharma, senior manager,(Research & REIS), JLL India.
Jaipur is shaping out to be a goldmine for the real estate investment. Despite rising interest rates, it is expected that prices will go up in future.
According to National Housing Bank (NHB) reside figures, the highest annual house price increase was in Jaipur at around 41% (27.4% in real terms) during the year to Q2 2013. With land prices rising across all the towns on the NH – 8 corridor, project costs are also rising accordingly.
“Micro markets such as Jagatpura, Vaishali Nagar, Patrakar Colony, etc are witnessing maximum activity in real estate markets. The rise in demand for a luxurious lifestyle at an affordable price and the influx of multinational corporations has transformed the city into a fast growing metropolis with prices steadily climbing the charts,” says the NHB report.
“Going forward, you will see more activity in the city’s office market. As a result, rents have started firming up for ready to-occupy offices. On the residential front, prices have remained stable in most areas in the past two years on account of adequate supply both in the primary as well as secondary markets. Property prices are expected to marginally revise by the end of the year” says Sachin Sandhir, managing director, RICS South Asia.