Real Estate Market In NCR And Residential Property In Gurgaon

One of the most prominent industries across the globe is the real estate industry. Its four sub sectors are retail, housing, business, and hospitality. Development of the real estate sector depends upon the growth of the corporate sector. An increase in demand for office spaces leads to an increased demand for residential spaces near it. After the agricultural sector, the real estate sector is known to generate the second-highest number of job opportunities in India. This sector is also likely to observe a greater number of Non-residential Indians (NRI) investing, both in the long and short term. The most favoured property investment destinations for NRIs are known to be the metro cities of India, including Bengaluru, Pune, Ahmedabad, Chennai, Delhi-NCR, Goa, and Dehradun.

Delhi - NCR occupies a massive space under India’s real estate umbrella offering a wide range of property segments. The real estate sector in India, including Delhi-NCR has been developing each year. In Spite of the overall decrease of 50% in sales in the year 2020 in comparison with 2019, the post lockdown period saw a boost in its fourth quarter as per a report by JLL. The sales increased due to deferred demand and the need for more space as for accommodating WFH requirements. This was all aided by discounted rates in the festive season, low interest rates on home.

Gurgaon being the corporate hub, however, suffered challenges in its real estate market. Residential property in Gurgaon has likewise seen a low. The residential rental market has about 60% of its properties vacant as the tenants prefer staying in their hometowns until work from office resumes.

As one of the primary sectors contributing to the GDP of India, the real estate sector has been seeing a low through the years. However, lately the sector has caught pace since the second quarter of 2021 and all the segments have started to yield better performance. The demand has observed a massive change especially in the residential sector.

An Overview Of The Residential Real Estate Market In Delhi-NCR 

In the fourth quarter of FY21, sales in the residential sector climbed by 29% and new launches increased by 51% in the top seven cities. In the same quarter, sales in Mumbai, Delhi-NCR, Pune, and Bengaluru totaled 83 percent. Micro-markets in the Delhi-NCR region, such as Gurgaon and Noida, has so far been observing ̌13 percent and 11 percent growth, respectively.

Despite the fact that the residential sector is primarily run by affordable homes with over seventy percent contribution by low and mid-income people, demand for luxury homes has seen a rise. With its ever increasing demand,  the luxury segment has turned the picture altogether for the residential sector.

According to research by Knight Frank India, the majority people in the Delhi-NCR desired to complete houses, ready to move spaces or plots. The reduction in home loan rates of interest and lower property prices boosted the affordability index in Delhi-NCR up from 64% in 2011 to 38% in 2020. Following the lifting of lockdown limitations and the resumption of site visits, sales recovered by 57 percent in the third quarter of 2020 and 90 percent in the fourth quarter of 2020 in comparison with the average quarterly sales in 2019.

In Delhi-NCR, about one third of all residential projects comprise Noida and Greater Noida. Amongst these, the most well-known spaces for home-buyers and new launches are Yamuna Expressway and Noida- Greater Noida West.

Noida and Greater Noida, both, managed to sell more than half of all residential spaces. This signified a favourable market for the real estate sector in 2021.

Most of the spaces sold were ready-to-move houses under the budget of 50 lakh. Likewise, the government is running quite a few residential flats projects in Gurugram.

As per a report by JLL India, Noida accounted for 55 percent of net absorption in the first quarter of 2021, followed by Gurgaon with 38 percent in the same quarter.

Real Estate In Gurgaon

According to property analysts and real estate developers, several micro markets in New Gurgaon are performing better as compared to their counterparts in the NCR.

Property prices grew by 2% in the National Capital Region, i.e., New Delhi and its neighbouring towns including Noida and Gurgaon amongst others, However, the prices observed 18-19% increase in places like Dwarka Expressway and Sohna Road.

The micro market around Gurugram has grown in response to rising demand and robust growth in the residential, commercial, and industrial sectors of real estate. "In the period of epidemic, a modified real estate market has emerged, and now new purchasers are preparing to buy residential property in Gurgaon owing to these new markets in the city's border areas," said Karan Kumar, CMO, DLF Limited.

As per a recent report by JLL, the real estate market in 2021 will be dominated by new residential project launches. New Gurgaon is captivating the attention of both buyers as well as developers with major developments such as an urban transit system, including the the relocation of the Kherki Daula toll, construction of Gurgaon - Faridabad metro corridor and Delhi-Mumbai Industrial Corridor, the restoration of the green belt along with the Southern Peripheral Road, amongst others.

There are a number of exciting new home projects in the pipeline in New Gurugram, all of which have a superb location and offer improved chances for residential market investors.

Here are a few examples:

• Godrej Nature Plus is located in Sohna, Gurugram, and is surrounded by vegetation and fresh air. The project is 15.59 acres in size offering 70% open space.
• Godrej Air, in Gurugram's Sector 85, comprises a total of 5 towers and covers a total of 10.04 acres of land. This initiative has taken measures to ensure that the air quality is improved. With every breath, people shall take in fresh air with the perfume of flowering trees and the goodness of purifying plants, whether inside or outside the house.

With such ongoing projects, the prices of residential property in Gurgaon are expected to increase.

Affordable Housing Schemes In India

To enable affordability in India, the government of India is running various affordable housing schemes one of which is Pradhan Mantri Awas Yojana.

The Pradhan Mantri Awas Yojana (PMAY) is an initiative taken by the government of India with an intent to provide affordable homes to the country’s poor population located in urban areas, by 2022. Officially launched on June 1, 2015, the programme begins at an interest rate of 6.50% per annum that remains valid up to 20 years. The deadline for applying for the PMAY credit linked subsidy scheme, for LIG and EWS, has been extended to 31st March, 2022.

What Do You Get From The PMAY Scheme?

1. All beneficiaries of the PMAY Scheme receive a subsidised interest rate of 6.50% per annum on housing loans. These loans can be as long as 20 years.
2. Ground-floor allocation will be prioritised for differently abled and senior residents.
3. Construction would be done with environmentally friendly and sustainable technologies.

The project will be concluded in three stages. It covers all urban areas in all the metropolitan cities of the country, including 4041 towns, 500 Class I cities receiving first consideration.

The subsidy aspect linked to the credit component of the Pradhan Mantri Awas Yojana is implemented in all statutory towns in the country right from the initial stages of the programme.

What Makes You Entitled For The Pradhan Mantri Awas Yojana Scheme?

1. The Pradhan Mantri Awas Yojana - Urban initiative primarily addresses the housing needs of poverty-stricken people in the urban areas. This affordable housing scheme also addresses the housing needs of slum inhabitants who live in cramped locations with inadequate infrastructure, sanitation, and drinking water.
2. The beneficiaries list of PMAY-U primarily comprises Low-Income Groups (LIGs), Middle Income Groups (MIGs), and Economically Weaker Sections (EWS).

The recipients in the EWS group are entitled for full support under the scheme, however those in the MIG and LIG categories are only entitled for the PMAY Credit Linked Subsidy Scheme (CLSS).

The applicant must submit an affidavit as proof of income to the authority in order to be identified as a LIG or EWS beneficiary under the Scheme.

In the Union Budget 2021, the Finance Minister Nirmala Sitharaman declared that the affordable rental housing projects will be immune to paying taxes and suggested that the eligibility criteria for affordable housing be extended.

Nirmala Sitharaman, the Finance Minister, as a part of her Budget speech, also advocated affordable rental houses for migrant workers. She has also notified further deduction of Rs.1.5 lakh for all housing loans that were taken before the year end of financial year, March 31, 2022. The Finance Minister has also notified that the tax exemption for development in affordable housing shall be extended for one more year, ending March 31, 2022.

Huda Affordable Housing Policy 2013

Furthermore, the government of Haryana issued 'Huda Affordable Housing Policy 2013′ in 2013. As the name suggests, this affordable housing scheme was designed to stimulate housing projects. Under this, apartments with predetermined-size units are made accessible at predetermined rates to qualified recipients. This is bound to happen within specified timelines in the urban housing market. With the purpose of accelerating the planning and completion of group housing projects, HUDA Affordable Housing Policy 2013 was developed under the PMAY subsidy for low income and middle income groups. This was inherently done to stimulate the building of affordable homes in the market for urban houses for worthy people as notified under the current policy. This policy aimed to simplify the home-buying procedure, and make more and more houses available for affordable purchase.

The HUDA Affordable Housing Policy 2013 was developed to help people residing in rural as well as urban areas of Gurgaon, Panchkula, Faridabad, and Pinjore-Kalka. Thereby, MRG World decided to assist the government and work under this scheme to provide affordable homes to the needy. MRG World is soon going to launch new projects in various sectors of Gurgugrea, which includes Sector 93, Sector 89, and Sector 90 amongst others. These sectors are situated at optimal locations, being only at a distance of 20 minutes from the airport and adjacent to the Dwarka Expressway. All projects by MRG World have excellent facilities. In addition, you can get an easy loan because all the projects are government certified.

Its Features:

The primary goal behind the development of this policy is to provide homes to all, keeping in mind that the least density allowed is 850 persons per acre and the highest can be up to 900 persons per acre land. Under this policy, a maximum ratio of 225 floor area is permitted. Building developers can make use of at most 4% for commercial purposes for the purpose of promoting community infrastructure including a market, playschool, garden. In addition, they can make use of about 50% of the area for residential homes. To prevent overcrowding, the builders have allotted at least 15% of the net planned area to open spaces. To ensure there is no overcrowding, no more than 5 persons must be assigned to any residential property in Gurugram at a given point in time.

Eligibility Criteria:

1. The eligibility requirements prioritise applicants who do not possess a space in NCT Delhi or any of the HUDA colonies.
2. It is essential for the applicant to be a permanent resident of India. This is because the primary component of the policy is ‘housing for all’ and the idea is to minimize the housing gap.
3. It is essential for the applicant to be aged between 18 and 70.
4. Under the HUDA Affordable Housing Policy 2013, any applicant who does not possess a plot, house, or apartment in the HUDA region in his own name will be granted precedence.
5. An applicant who has been assigned a property under this programme is ineligible for further assignment of property in another colony. If he or she owns more than one flat, they are permitted to keep only one property.
6. All applicants must present an affidavit for verification to the appropriate authority.

Developers’ Incentives:

The Affordable Housing Policy is developed to utilise the private sector's capital investment in building affordable housing. The HUDA Affordable Housing Policy 2013 aims to provide private developers with incentives such as:

1. Exemption from infrastructure development charges and licence fees
2. A higher Floor Area Ratio (FAR) of up to 225 in comparison to 175 in most group housing projects
3. Increased ground coverage to 50%, as opposed to the normal 35 percent.  

Flat Rates:

In the development plans of Gurgaon, Fairdabad, Panchkula, and Pinjore-Kalka, the maximum allotment rate for apartment units that are approved under the Affordable Housing Scheme would be  Rs 3,000 per sq ft in the low potential towns, and Rs 4,000 per sq ft of carpet area, Rs 3,600 per sq ft in the development plans of medium and high potential towns, and

Flat Allotment:

The Deputy Commissioner of the district(s) will handle the draw of lots in accordance with the location of the available affordable housing units.

Timeline for Project Completion:

All affordable housing projects must be completed within four years of the date of approval of building plans or the grant of environmental clearance, whichever happens later. The licence for construction shall  not be renewed  post this date, which will be called as the date of commencement of the project.

These projects have brought to life various residential flats projects in Gurugram enabling many people to be able to afford a living. 

Deen Dayal Jan Awas Yojna

Home is a safe place for all of us and it is where our hearts go. A home is a home, no matter how big or little it is. It provides both financial and mental security. When you have a home you can call your own, everything appears to fall into place. It is one of the most basic and essential requirements in one’s life. If you already own a residential space, consider yourself fortunate! There are many others who can now call themselves fortunate enough due to the Indian government's affordable housing schemes.

Under the Pradhan Mantri Awas Yojana, the government  of Haryana launched another campaign, Dayal Deen Jan Awas Yojna. It was approved under Haryana's consolidated licencing policy in 2015. Dayal Deen Jan Awas Yojna is a Haryana government’s programme that uses a liberal policy framework to support the building of high density planned colonies in Haryana's low and medium potential towns. The goal of launching this project is to stop unauthorised colonies from sprouting up and meet the goal of "Housing for All by 2022." It intends to encourage the establishment of high-density planned colonies in Haryana's Low and Medium Potential towns. 

Builders or developers, under Dayal Deen Jan Awas Yojna, are permitted to construct colonies or housing societies in 5 acres to 15 acres of land. The most intriguing feature of this strategy is that potential buyers can borrow up to 75 percent of the property value on plots from all major public and private sector banks, and upto 90 percent on builder floors and flats.

There are multiple steps that the government has managed to undertake for encouraging this initiative apart from the above mentioned. This includes waving off of infrastructure development charges along with the Change of Land Use (CLU) charges. In addition, the government has minimized the external development charges along with rates of the license fee.

Conclusion

Affordable housing scheme is an excellent step in the right direction. The residential flats projects in Gurugram strike a delicate balance: on one hand, they provide incentives to builders whilst ensuring that projects are delivered on time. In Haryana's urban centres, if implemented, these projects will benefit a population of around six lakh people from the lower-middle class as well as lower classes during the next five years.

Under these schemes, MRG World has been incessantly working to aid the needy. MRG World not only offers homes at affordable prices, but also gives luxurious amenities including a kids' zone, parks, gyms, clubhouse, amongst others.