The Delhi National Capital Region (NCR) has been witnessing an increased demand for lease outs as property prices soar and many people find that they cannot afford to buy a house in this region. Ghaziabad with its proximity to Delhi has also reflected this surge in demand for rented property. The areas in demand in Ghaziabad are Indirapuram, Kaushambi and Vaishali.
Vaishali is a premium residential area and has a variety of residences which range from villas, builder floors, e-homes and penthouses. More than 50% of the residential units in Vaishali have been constructed less than five years ago. There are also a number of flats for rent in Vaishali. Vandit Singhal Managing Director, The Property Shop said, “Vaishali is mainly a residential area with just a few malls and hotels. There are no new malls or hotels coming up in this area, as there is no space available. Over 95% of the space is only residential.”
Prices for real estate in premium and mid segment areas in Vaishali depreciated by 25% and 11% respectively, while the lowest segment showed an increase of 10% from January to March 2014. The prices for high end property were INR 6200 per sq ft while mid segment stood at INR 6170 per sq ft and the lowest segment was at INR 6100. What is significant is that there is not much difference in the price range between the three categories.
According to reports, the average rental values between January to March this year at the upper end of the scale is INR 14 per sq ft, mid-level is INR 14 per sq ft and the lower levels are at INR 13 per sq ft. There has been a 12% increase in rental values across the board. Again, even the rental rate for the different categories does not seem to vary much.
Studio apartments in Vaishali ranging from 410 sq ft to 690 sq ft are available for anything between INR 5774 per sq ft and INR 6087 per sq ft, depending on the location and the kind of construction. Singhal said that studio apartments in Vaishali were mainly available in high rise apartments.
The main reason for Vaishali’s demand has been its proximity to Delhi and Noida. The National Highway (NH) 24, which connects Lucknow, the capital of Uttar Pradesh, to Delhi, passes through Vaishali. The NH 24 has been a major driver for realty in this area.
Vaishali is also connected to the metro as it is located on the Blue line of the Delhi Metro. It is said to be one of the busiest metro stations in Delhi. The station serves commuters from Vaishali, Indirapuram, Vasundhara and Sahibada. Realtors say that the metro has been directly responsible for real estate prices going up in this locality. It is estimated that the appreciation of real estate values were in the region of at least 20%.
In recent years, the efforts taken by development authorities such as the Ghazibad Development Authority, UP Awas Vikas, municipalities and other private developers have done much to develop the infrastructure in the city. These efforts paid off and there has been a great appreciation of real estate values. In Ghaziabad, localities such as Vasundhara, Indirapuram, Crossings Republik and Vaishali there has been an increase of over 30% in prices over a period of two years.
A couple of years ago, a number of developers launched projects in the above mentioned localities in Ghaziabad, so there is a large inventory of apartments which are now being leased. Many of these buildings have been constructed by private parties or small time developers hoping to make a quick buck.
In Vaishali and Crossings Republik, majority of prospective house buyers showed a marked preference for 2 bedroom, hall, kitchen (BHK) configuration, a smaller percentage preferred 3BKH apartments.
Image courtesy: supertechlimited.com
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Nina Varghese for IndiaProperty.com