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February - March 2008
Gurgaon: Flying High on the wings of Realty
by Alex Walia
About 25 kilometres south of Delhi, northern India has seen the town of Gurgaon increase in value by 500% over the last 5 years due to its perfect location for international businesses and MNC’s, close proximity to Delhi’s IGI Airport, transport links into Delhi and Jaipur and therefore above all, demand for residential and commercial property.
Gurgaon is now one of the most favourable places for investment in northern India and its investment return has only just begun. In today’s day and age, Gurgaon is well recognised as the most renowned Corporate Hub in South Asia and also the highest flying hub of outsourcing and off-shoring in India. Apart from MNCs, Gurgaon is fast becoming a legendary place for residential and commercial property investors. Like enormous apartments, bustling malls, express highways and illuminated glass buildings.
Based on the Delhi-Jaipur National Highway, the city is now a hub of top IT and non-IT MNCs, including automobile giant Maruti Suzuki, Hero Honda, Carrier Aircon and many more like Genpact, Hewitt, Accenture, IBM, Convergys and many more. Brining together all these companies from across the world into one location, Gurgaon now has been termed as the ‘Cyber City of India’.
Gurgaon is linked through Inter State Rail and Road facilities and International and Domestic Airports are just 10 kms from the city. It is also soon to be recognised, as a world class Golden Triangle City Centre for a four lane highway passing through the city. Gurgaon also includes 7 flyovers and 5 underpasses and construction of the metro line from Delhi to Gurgaon has already started and is due for completion and operation in the year 2010 coinciding with the much anticipated Commonwealth Games 2010.
Gurgaon provides a chain of well-equipped hospitals, including Indraprastha Apollo Hospital, Privat Hospital, Chiranjiv Hospital, City Hospital, Civil Hospital, Jindal Hospital and Kanshiram Medical Centre. The city offers the most up to date medical facilities to distressed people from different parts of the NCR and the neighbouring states.
Geographically, Gurgaon is sharing its boundaries with Uttar Pradesh on its south and Rewari and Rajasthan in the west. Gurgaon district comprises of nine blocks, including Tauru, Nuh, Pataudi, Nagina, Punhana, F.P. Jhirka, Sohna, Farukhnagar and Gurgaon.
Cashing in on the Booming Real Estate Market
Gurgaon, the housing neighbourhood of Delhi will continue to remain the scene of much of the real estate action in future. Easy availability of quality housing at affordable prices and the quality of construction is making Gurgaon investment-worthy. Gurgaon in fact, currently counts as the hottest suburb to invest in and stands to remain like that for the coming years.
Gurgaon’s House Price Growth during the Period 2001 - 2006
Property value in Gurgaon is likely to appreciate 12-18% a year for the next few years. Gurgaon has reshaped the Indian realty sector as it has pioneered the emergence of luxury segment in India during 2004-05 with the launch of DLF’s Aralias; Aralias II; MGF Villas; DLF’s Magnolia and lately DLF’s Belaire near Golf Course. These high end projects offer 4-5 bedrooms, centrally air-conditioned luxury apartments with lavish specifications and all the modern amenities for client satisfaction.
This trend of elite dwelling has also refurnished the need for purchases in Gurgaon real estate in order to function as a weekend home. To fulfil the mounting demand of Gurgaon properties, many well renowned real estate developers have initiated the construction of new projects consisting of both middle and high-end budget projects at Gurgaon Sohna Road, MG Road, Old Gurgaon Road and Golf Course Road.
Apart from expensive dwellings and state-of-the-art office spaces, the city also offers a wide range of residential properties for middle class segment. This segment of residential apartments builds the base for the mass ongoing constructions in Gurgaon. Due to its proximity to south Delhi, the city will further enhance its position as a world class real estate destination for investors of India and abroad as connectivity to the international airport gives Gurgaon, a vital edge over other cities in the NCR.
Gurgaon stands out as the target place for investors in comparison to other cities. As the competitive market evolves in Gurgaon mainly at the command of the developers, who are trying to build a consumer base by providing investors with worthwhile options in residential as well as commercial properties in Gurgaon. Gurgaon, basically is one of the hottest cities in India to invest in.
Investing in the Mushrooming Realty of Gurgaon
Gurgaon offers an excellent location to invest in residential as well as in commercial property as it is so well located. It offers excellent law and order regulations within a peaceful environment. These key factors have helped it attract a sizable number of investments from MNCs, large business houses, foreign investors and Non-Resident Indian (NRI).
Being one of the major outsourcing hubs throughout India, Gurgaon currently houses some of the largest international companies and businesses such as Agilent, Alcatel, American Express, British Airways, Convergys, eFunds, Ericsson, KLG Systel, KEANE India Ltd., Fidelity Investments, Genpact, HCL Technologies, Hewitt, Hindustan Lever Limited (the Indian division of Unilever), IBM, Siemens, Flextronics, Coca-Cola, GSK, General Motors, Gillette, HP, Hitachi Metals, Nestle, New York Life, Nokia, Pepsi, Trinity BPM, Xerox and many more.
Gurgaon is also home to many manufacturing units such as the largest car and motorcycle manufacturers in India, namely Maruti Udyog and Hero Honda; which has their manufacturing plants in the city. Gurgaon hails most of the reputed developers like DLF, Unitech, JMD, Vipul to name a few and they have all added to the infrastructural and construction of international standard office spaces and residential units that meet the demand for MNCs and high-end modern corporate organisations.
Besides, Gurgaon’s nearness to New Delhi and easy connectivity to the international airport is a major plus factor but not the only reason for its astonishing growth. Also, availability of good quality and cheaper office buildings and residential complexes has proved attractive to many companies who have shifted their corporate and back offices to India.
The boom in the economy has touched unprecedented heights, which is evident from the number of projects being developed and marketed by UK based Mayfair International Estates, who are located in Slough, Central London and Birmingham to gratify the increasing demand for residential as well as commercial property for its clientele spread across the UK and rest of the world.
Mayfair International Estates, one of the leading providers of quality-projects across India and the world, has tied up with major global real estate developers to market their products. Also, following its merger with one of the largest brokers in Gurgaon, Mayfair International Estates are also now able to offer rental and resale for its clients as and when their clients wish to rent or resell their property. The merger brings extensive experience together and gives clients of Mayfair International Estates, a safe and secure way to invest in the booming real estate market in Gurgaon and the rest of India. The company takes a pride in offering residential, commercial and retail projects worldwide, as well as a diverse range of services including asset and property management solutions to its clientele. Besides, the company offers strategic plots of prime plots of approved land across India and the UK to help them in reaping good returns whilst diversifying their investment portfolio geographically.
Ever since the RBI foreign remittance limit has been increased to USD 200,000 per financial year, small-time investors are getting more attracted towards making investments in fixed assets abroad. In view of the opportunities arising therein, Mayfair International Estates leaves no stone unturned in delivering the best quality projects to its vast investor base across the world, thanks to their relentless commitment towards quality and passion for innovative developments, projects and ideas.
‘Think Investment. Go Global.’ - that is the essence of Mayfair International Estates, one of the leading providers of quality-projects across the world, steered by Alex Walia is renowned in the UK for catering to investors’ aspirations to invest in real estate industry at different locations in the world. The company has tied up with major global real estate developers to market their products, on an extensive scale. With this in mind, the company has already spread its horizons in countries such as UK, Thailand, Dubai, Malaysia and Spain, catering to its investors worldwide.
Alex Walia, Chairperson says, “Investors while making property investments abroad or locally are not looking for something expensive or cheap. To whatever income bracket they fall in, what they are looking for is value-for-money. And on that crucial measure we deliver. Today’s investors are very much aware about the real estate scenario and returns generated thereon. They know how to weigh in on factors such as price, location, rental growth, capital appreciation and the list goes on, while making any strategic real estate investment, be it locally or globally.”
Mayfair International Estates has got an array of outstanding projects to offer under its banner, and continues to offer only highly successful projects to its ever-growing client base, be it residential, commercial or retail projects. The company, with over 50 years of collective experience in the real estate sector has gained enormous goodwill and reputation by offering landmark projects and providing expert advice to their clientele in getting them the right product as per their investment needs.
“Today, anybody can make tall claims. But, we here at MIE, are making verifiable claims. Firstly, the location advantage of our projects. Be it the National Capital Region of New Delhi in India, United Kingdom, Malaysia, or Dubai, all our existing projects are at highly accessible locations,” further quotes Mr. Walia.
India, one of the world’s fastest growing economies, has witnessed a surge in its realty industry, especially the property zone in the recent past. Mayfair International Estates offers prestigious residential, retail and commercial properties in one of the finest areas of the country – National Capital Region of Delhi, Jaipur, Mumbai, Pune, Hyderabad, Goa, Chennai, Kolkata and many more.
NCR, including New Delhi and its satellite towns: Faridabad, Gurgaon, Noida and Ghaziabad, is a prime economic zone of India. With the advent of international players, the NCR market is expected to grow towards global standards. Jaipur, the third city of the ‘Golden Triangle’ following Delhi and Agra, is a growing business centre of North India. An International Convention Centre is proposed in the city and is set to come up within the next 18 months. With the city emerging as a major centre for gems, jewellery and textiles, increased business for the hospitality segment will be coming in from this commercial segment.
Raheja’s Navodaya – Exclusive Luxury Homes
An eco-friendly haven in Sectors 92 & 95 of Gurgaon
Raheja Developers unveil Navodaya, spread across 17 acres in sectors 92 and 95 Gurgaon adjacent to IMT Manesar, one of the upcoming residential sectors in Gurgaon. Navodaya seeks to promote a unique walk to work concept envisioned to be a solution provider to huge workforce of IMT Manesar. Navodaya offers an accommodation of eight towers which have Ground + 14 floors to be built in a combination of 1, 2 and 3 bedroom apartments as well as studio apartments well suited for a wide variety of budgets.
The target segments for such a realty project are the residents of Delhi NCR, with a special focus on the 200,000 plus corporate executives who are working at IMT Manesar. Moreover, the presence of housing facilities like a clubhouse, a corner store and huge central greens, children’s play areas, primary schools in Raheja’s Navodaya makes the project very attractive and also with its international quality housing, its fits in with many an investors budget with apartments starting at just GBP54,000 for a 2 bed room apartment.
Spread over 17 acres
Among eminent projects offered by Mayfair International Estates, Atharva Apartments is one such project located next to the Delhi-Gurgaon border, which boasts of an exclusive state-of-the-art project offering air-conditioned luxury homes in various shapes and sizes, with best imported finishes. New age design and a keen sense of functionality have gone into its planning. Plus, these homes are just 5 to 7 minutes away from IGI Airport and the already constructing Metro corridor.
The price appreciation (to the tune of 50%) that was witnessed in 2004 across the various residential markets of Gurgaon was mostly led by apartments in the premium segment. Atharva is an example of those projects that have shown a capital appreciation by 20-30 %, indicating an annualised return of 25-30%. The rental values of these apartments are also rising in tandem with the capital values. Again, this project too fits in with many a budget as prices start at just GBP104,000 for a 3 bedroom apartment.
Spread over approximately 22 acres
So, it seems the real estate boom in India has only just began with prices increasing rapidly every quarter and in comparison to the ever faltering UK property market, prices in India for residential and commercial units are well priced and well prepared to continue increasing. Its certainly a sure bet for any investor!