Jubilant in Jaipur

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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

A Proposal has been made to provide relaxation and allow realtors to develop housing projects in U2 areas in the Master Plan. The U2 areas are defined as the immediate influence area of the U1 and the satellite towns. Since U2 areas are mostly rural where most of the land is vacant and unused, they can be suitably used to develop house
Gurgaon being closer to Delhi NCR, has seen spiraling growth in real estate development. The major development 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
The JDA is focusing on road sector projects to add value to the two promising segments affordable and mid income housing projects

BABUSPEAK

We are also coming up with lots of residential schemes for people who want to get houses for their corporate enterprises. In the last four years, there weren’t any schemes. In 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
SHIKHAR AGARWAL, Commissioner JDA

ASHUTOSH LIMAYE, HEAD - RESEARCH & REIS, JONES LANG LASALLE INDIAResidential 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 other forms of residential development despite the higher prices
ASHUTOSH LIMAYE, Head (Research & REIS), JLL India

sachin_sanjayGoing forward, you can 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 end of the year
SACHIN SANDHIR, MD, RICS South Asia

Neeraj Mishra, Praxis Group  DirectorSituated 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.
NEERAJ MISHRA, Director, Praxis Group

Amit-Modi-ABA-Corp-150x150Jaipur is expanding its sp here to gain recognition as a significant connector on the upcoming Delhi-Mumbai Industrial Corridor. The city is part of the famous tourist triangle in north India and is a mega tourist destination apart from Delhi and Agra. The city is emerging as a major IT hub and has tremendous potential for integrated township projects and low-cost. Affordable housing. Towns like Bhiwadi and Neemrana are likely to see faster growth. Residential projects are progressing at a rapid pace in Bhiwadi while in Neemrana. All-round industrial and residential-led development is clearly on the cards
AMIT MODI Whole Time Director, ABA Corp

ROHAN SHARMA, SENIOR MANAGER - RESEARCH & REIS, JONES LANG LASALLE IN INDIAManesar being a well-established industrial town and considered a part of Gurgaon. It has led to significant price increments in housing projects located. Dharuhera and Bh iwadl are largely catering to affordable housing in terms of amenities and pricing. And prices there have remained largely stable. Showing only range-bound growth in projects which are nearing completion
ROHAN SHARMA, Senior Manager, (Research & REIS), JLL India

Gaurav Kumar Mehra, Director, FelicityJaipur is apparently the fastest growing Tier II city with a proposed Delhi-Jaipur expressway and a bullet train between the national capital and the state capital. A new airport on the lines of Terminal 3 of New Delhi is being developed at Kishangarh on the Jaipur Ajmer expressway to cater to the twin cities. All of this will augment the growth potential and reduce the travel time between the two economic magnets of the north India, making Jaipur a counter magnet to Delhi and NCR
GAURAV KUMAR MEHRA, CEO & MD, Felicity Concepts

Kamal Batra,Chairman, Buniyad GroupEvery developer plans a project at a location according to the population density and infrastructure in the given region also keeping in mind the future plans by the government and authorities. At present, Jaipur is very lucrative for developers as well as long term investors. The land costs at present are lower than other regions of Delhi/NCR which makes the decision for the developer much easier. The region is witnessing a sharp rise in demand and prices in the last few years, and therefore, it is advisable to invest with a long-term perspective
KAMAL BATRA, Chairman, Buniyad Group

Rohit Raj Modi, Officiating President, CREDAI NCRI think Jaipur city provides a great infrastructure for li vi ng with wide roads, metro train and ood civic amenities. As the city currently has a population of 30 to 40 lakh people and it continues to enjoy more and more migration from the smaller cities of Rajasthan, Jaipur realty market offers affordable budget apartments for middle-income group in a range of Rs 25-40 lakh. Market offering budget homes, good civic amenities and growing population may offer a great growth prospect of Jaipur realty market in times to come
ROHIT RAJ MODI, Director, Ashiana Homes

As far as buying property in Jaipur is concerned, it could be the best time for buyers /investors. Prices will surely increase with the development plans and implementation by state and central government. The governments at both the levels are new and they have fought election in the name of development only. So, anyone who will invest now could reap rich dividends
AMIT BANSAL, MD, Innovative infra developers

Kushagr AnsalDestinations that have a sound infrastructure and connectivity are supposed to be the ideal locations for real estate development. Jaipur is one place that is witnessing such an experience. This has actually made its demand and price appreciate manifold especially in the last few years. Currently, end users having their offices in or around Jaipur can go on to buy homes and even second home buyers as well. But investors need to have a mid-term to long-term plan while investing in Jaipur so as to increase the returns
KUSHAGR AN SAL, Director, Ansal Housing

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.

PRICE SCENARIO

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

Healthy demand for the right kind of project with the correct price points can be expected. Towns, like Dharuhera, Bhiwadi and Alwar can expect to see local demand as the first two are major industrial centres, and will see some part of the DMIC development adding to the infrastructure in these towns going forwards. JLL
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: NHB

Shivakshi-Gogia,-CFO,-Ascent-GroupBeing one of the most attractive of Tier II cities in India, Jaipur has witnessed a lot of price appreciation in the last few years. The demand here runs parallel with the prices. In times to come, this demand is expected to grow even more vertically and hence the prices can be guaranteed to go north as well. Most customers interested in Jaipur today are mostly long-term investors and second home buyers as the Rol is better and prices relatively less
SHIVAKSHI GOGIA, CFO, Ascent Group

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.