The real estate market at Kundli
in Haryana's Sonipat district holds great potential, thanks to several ongoing
and proposed development projects in the region. These include the
Kundli-Manesar-Palwal (KMP) Expressway, the Rs 5,000-crore Rajiv Gandhi Education
City at Sonipat, the 100-metre-wide road from the IGI Airport to Narela,
improved rail connectivity (Kundli is to have a metro stop as part of a rapid
rail transport system), a proposed logistic park, and a textile park.
The premier developer in the Kundli
region is the TDI Group. with the 1,250-acre land bank. Others include
Parsvnath Developers, Maxheights Dreams Homes, Ansal
Properties, Omaxe, Parker Group, Raheja Malls, Eldeco County, Anant Raj, Tulip
Infrastructure, Collage Group, Eros Group, AJS Builders, Divine Group, Big Jos,
Shree Vardhman and Jindal Greens.
Investment potential
The Kundli-Sonipat belt offers
moderate-to-good returns on investment in absolute terms. However, the return
on investment (RoI) on real estate is lower than elsewhere in the national
capital region (NCR) such as Noida and Gurgaon. The average plot price is a
little more than Rs 25,000 a sq yard - a huge jump from Rs 5,000 a sq yard,
which the region commanded a few years ago when the projects were first
launched.
There has been 30-40 per cent
appreciation in apartment rates since 2007-08, implying the annual property
appreciation rate has been in the range of 6-10 per cent on an average. During
the same period, property rates in Noida and Gurgaon have more than doubled.
The current rates for commercial property are upwards of Rs 8,000 a sq ft and
are likely to maintain growth, albeit at a slow pace.
The flip side
Despite the initial euphoria,
many of the infrastructure projects of the Kundli-Sonipat region have witnessed
extremely slow progress. Due to the delay in the KMP Expressway, the property
market in the region has not taken off with the initially anticipated speed.
The region lacks critical mass in terms of population, and is yet to emerge as
a preferred office destination for IT/ITeS organisations. The occupancy level
in the existing projects is just around 25 per cent.
Signs of basic infrastructure
such as schools and hospitals are yet to make a mark in the region. The
affordability tag is gradually losing relevance, though the price points at
Kundli are still lower, compared to other areas in the NCR.
Outlook
This region has great potential
thanks to its proximity to North Delhi and the Delhi borders. Investors with
constrained budgets can still explore Kundli. If the proposed infrastructure
and development initiatives go on stream, Kundli can get into higher gear.
Investors should maintain an investment
of property horizon of three-five years to realise a decent RoI.
