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Commercial Property Boom in Capital


Commercial Property Boom in Capital

Last updated: March 29 2007
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  • Commercial Property Boom in Capital

    Sarita Vihar and Jasola enjoy the advantages of prime location and good connectivity. Now Jasola is also set to emerge as a major commercial hub.

    Sarita Vihar and Jasola situated in southeast Delhi have in recent times emerged as much sought after middle and upper-middle-class residential colonies. Being located on the main Mathura Road (NH-2), these colonies are well connected to central and south Delhi on one side (Ashram Chowk is 5-6 km away), and Faridabad on the other. Road no. 13A, which passes via Kailndi Kunj and the Okhla Barrage, connects these two colonies to the Noida-Greater Noida expressway.

    Housing options

    Sarita Vihar primarily has DDA flats (see table: Property prices in Sarita Vihar). Jasola too has DDA flats, whose prices are marginally lower (about Rs 2-2.5 lakh less) than of those in Sarita Vihar. In addition, Jasola also has independent plots and kothis. Two years ago, the rate of plots in Jasola was about Rs 46,000 per sq m; today it has soared to Rs 1-1.25 lakh per square m in pockets 1 and 2. Builder floors are also being developed in Jasola.

    A two-bedroom MIG apartment of 900 sq ft, which today costs Rs 41 lakh, cost about Rs 25 lakh one year earlier. A three-bedroom HIG apartment, which today costs Rs 75 lakh, cost Rs 50 lakh one year earlier. According to Kumar of Reliance Properties, “There has been a hike of almost 50-60 per cent across the board over the last 1-1.5 years.”

    As for the present stability in prices, Kumar attributes it to the rise in interest rates and to seasonal factors. “Around this time of the year very few property transactions take place as people are busy with their children’s examinations,” he says.

    Sarita Vihar and Jasola are also popular destinations for rental housing. The rental rate varies depending on size, floor and location of the apartment: an LIG flat is available for as little as Rs 3,500-5,500, while a high-end HIG apartment could cost you anywhere from Rs 12,000 to 20,000 per month (See table).

    Emerging commercial hub

    Jasola is set to emerge as one of the most important commercial hubs of Delhi. Nearly 20 lakh sq ft of commercial space is being developed here. DLF, Omaxe, Realtech, Salcon, TDI, Uppals and Aditya Buildwell are some of the players coming up with projects here. According to Rohit Malhotra, CEO, Realtech group, which is developing Copia Corporate Suites, a 2.5 lakh sq ft office complex that is ready for fitouts: “The rental rate for office space in Jasola is Rs 175-200 per sq ft per month, while the capital value has touched Rs 17,000-18,000 per sq ft.” Retail space, which is usually located on the ground and first floor, is priced at Rs 20,000 per sq ft.

    In October-November 2005, the rate in Jasola was barely Rs 4,500-5,000 per sq ft. Says Malhotra of Realtech: “The rise in price of commercial space is driven by the immense shortage of quality office space. If you go looking for offices with large floor plates, hardly anything is available.” Last year’s sealing drive in Delhi also sent the price of legal commercial spaces soaring. This acute shortage is also reflected in the returns: today the rental yield from office space is 11-13 per cent compared to 6-7 per cent from residential space.

    Emaar MGF has purchased a plot in Jasola in a DDA auction on which it will construct a high-end hotel. Thus, if you are looking to buy an apartment, Jasola and Sarita Vihar offer the twin advantages of prime location and good connectivity. With Jasola also set to emerge as a prime commercial hub, buying an apartment in this area is one investment that you are unlikely to regret.
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