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Why is GURGAON so NERVOUS?

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Why is GURGAON so NERVOUS?

Last updated: May 13 2013
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  • #11

    #11

    Re : Why is GURGAON so NERVOUS?

    its true that in Residential Land Rate Gurgaon is much behind then Noida... Even in GZB all good areas has residential land rate ~1Lac PSY (like IP/Vaishali/Ramprastha Calony/Raj Nagar Main/....) , if USA IT/BPO industry gone then Gurgaon RE also will be in deep trouble due to no other big support economy.

    Gurgaon mainly depends upon Outsource Industry... and IT / BPO jobs... however Noida also has good IT jobs... and Noida / Near Areas also has versatile economy and huge job area other than IT also like

    1) 500 Acre biggest Bharat Electronics Limited Unit (BEL)
    2) 4500 Acre India biggest Army Airport at Hindon.
    3) After Kanpur, India biggest Army Ordnance Factory
    4) SAIL:- Steel Authority of India Biggest Unit
    5) ITC big wroking Unit
    6) Dabur big wroking Unit
    7) In around 5000+ Acre small/big 3000 Caror Infra Medium/Large other Industries with 2Lac+ Jobs
    8) Meerut Division only 40 KM far from Noida/GZB give Highest Income TAX to country.

    There are several factors that why Residential Land Rates (REAL MONEY) is high in Noida & near areas however Society Flat Rates (Borrowed Bank Loan) are more in Gurgaon.
    Last edited March 22 2012, 10:00 PM.

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    • #12

      #12

      Re : Why is GURGAON so NERVOUS?

      Originally posted by manu813 View Post
      DMIC :: Delhi Mumbai Industrial Corridor, An Indo-Japan Mega Infrastructure Project

      Check this out for more information.
      Thanks

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      • #13

        #13

        Re : Why is GURGAON so NERVOUS?

        Link shared by you does not have all links working .. here you can click all section links

        Delhi Mumbai Industrial Corridor :: An Indo-Japan Mega Infrastructure Project

        And here is State wise alignment maps

        DMIC Map

        Originally posted by cookie View Post

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        • #14

          #14

          Re : Why is GURGAON so NERVOUS?

          Originally posted by deepauls View Post
          For past few days, I am seeing unusual rising unrest and nervousness among Gurgaon investors, on this forum and elsewhere.

          The reason being almost stagnation in prices, oversupply on Dwarka Eway and Pataudi Rd., no appreciation in foresight and the fear of depreciation of the properties.

          Today, in posh Gurgaon sectors the maximum property value is 70,000 - 90,000 per square meter, much less than Delhi's lower middle class Geeta Colony (Rs. 200,000) and Noida's posh sectors 14 and 15 (Rs. 250,000). Delhi is fetching prices of Rs. 500,000 (Upper Middle class Paschim Vihar), Rs. 12,000,000 (High Class Vasant Vihar)

          Rising nervousness among Gurgaon investors is obvious for the following reasons:

          1. Noida issue resolving: With the Noida farmers issue heading for a definite resolution through court settlement and stable government, Gurgaon's properties are likely to loose ground. Not only huge inventories will open once again which cater to all segments, MNCs and big corporates are also shifting most of their offices, if not just the base, to Noida at first opportunity. Lack of affordable housing and basic civil amenities are the cause why most people prefer to live in Delhi and Noida and work in Gurgaon. MNCs and big corporates definitely prefer to have operational offices only where there are easy commute available to all its employees.

          2. Noida's promising future: With wide roads and better infrastructure, along with the 7 Star projects projects like F1 Race Track, Night Safari etc., Noida and Greater Noida are offering International Standards whereas Gurgaon has nothing such to offer other than narrow roads and clausterphobic office buildings, who have even to generate power on their own. In Gurgaon, typically, buildings are made first in Farm Fields and connected to the roads through arteries later. Contrarily, Noida and Greater Noida are planned cities where Roads are built first and then buildings later on.

          3. Connectivity issue: Gurgaon connects to Delhi only through MG Road and NH8, which have become traffic nightmares. No future connectivity projects are in sight. Dwarka Expressway connectivity is a very bad planning. Who would want to go via Dwarka if one is not living in Dwarka. Everyone else have to come to NH8 first to go to Dwarka Expressway. One cannot dream of connecting Dwarka expressway directly to Punjabi Bagh or Vasant Vihar etc. This is a foolish plan. Contrarywise, Noida connects to Delhi, New Delhi, Ghaziabad and even Faridabad from it's all open four sides through a wide network of highways and roads.

          4. Industries: Other than few which you can count on fingers, the Gurgaon belt is not offering any good industrial development projects. Even Reliance is pulling its hands back from the proposed Jhajjar industrial SEZ.

          5. Expansion: Haryana government, although trying its best to expand Gurgaon's limits by developing lands around Pataudi Road (New Gurgaon DLF Heights) etc. industries and residential investors are shy because of the "dead end" locations. There are no prospective towns nearby to support the development infrastructure. Noida and Ghaziabad have no "dead ends". Immediately after their city limits, medium - big towns prospering economies embraces all. For example, Ghaziabad has no end with any economic dead end, it finishes with Delhi and Noida on one side, then Modi Puram, Modi Nagar and big town Meerut on the other side. Gurgaon's geography can never fill this gap. Gurgaon has no supporting City other than Delhi where as Noida and Ghaziabad covers the prospering economic markets upto Meerut and beyond. Satellite towns like Dharuhera have to depend upon mostly on Gurgaon for most of their needs, whereas all cities around Ghaziabad and Noida are not only independent, but helping to other town's economies also.

          6. America and Western Countries doomsday: Although Gurgaon also attracted National Corporates, but its main dependense still is on MNCs, IT, call centers and BPOs. It doesn't have a diversified portfolio in this regard. With the economic downfall of western countries, it is a nightmare to imagine how Gurgaon's economy will suffer once those shops start shutting down one by one.

          Nervousness is there in Gurgaon and tremors are being felt. One of my major client has shifted its marketing and operational offices from Gurgaon to Noida because of his rising requirements which Gurgaon could not cater. They have aggresively bought office and other properties in Noida/Greater Noida.

          Although I have been trained in my profession to speak the client's language only and change when client changes, but I am offering here my honest and unbiased opinions only based on the material facts I see and observe.

          My sincere advice: Avoid investments in Gurgaon: too many risks of depreciation - forget appreciation for at least 5-10 years in that area. Will hardly adjust to inflation only that too after possible depriciation.

          Noida and Greater Noida are the well planned cities of the future, already surrounded by sound economies of Delhi, Ghaziabad and other prospective rising towns. No question of failure of investment in realty there.
          Good analysis Deepauls.

          Here are a few additional point:

          Public Transport - Almost zero in gurgaon. There's on a feeble small portion connnected by an operational Metro at MG road till HUDA city center. For everyplace else:
          - Either take a cycle-rickshaw who charges you INR 50 minimum for the shortest possible trip
          - At a few places overcrowded shared autos are available, but its damn difficult to travel in them.
          - Extra high priced taxis - shell out INR 200 for a small trip.


          Crime levels - Gurgaon has become the most unsafe place recently with increased crimes. Many news items can be referred for corroborating it.

          Basic facilities - Needless to say, no proper sewage, long power cuts, pathetic roads.


          All these including Deepaul's points are cumulatively contributing to a negative shift in Gurgaon's image.

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          • #15

            #15

            Re : Why is GURGAON so NERVOUS?

            https://www.indianrealestateforum.co...issues?t=16860


            Originally posted by AashishK View Post
            Good analysis Deepauls.

            Here are a few additional point:

            Public Transport - Almost zero in gurgaon. There's on a feeble small portion connnected by an operational Metro at MG road till HUDA city center. For everyplace else:
            - Either take a cycle-rickshaw who charges you INR 50 minimum for the shortest possible trip
            - At a few places overcrowded shared autos are available, but its damn difficult to travel in them.
            - Extra high priced taxis - shell out INR 200 for a small trip.


            Crime levels - Gurgaon has become the most unsafe place recently with increased crimes. Many news items can be referred for corroborating it.

            Basic facilities - Needless to say, no proper sewage, long power cuts, pathetic roads.


            All these including Deepaul's points are cumulatively contributing to a negative shift in Gurgaon's image.
            Please read IREF rules | FAQ's

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            • #16

              #16

              Re : Why is GURGAON so NERVOUS?

              Analysis bekaar hai yaar. Factors favoring RE are far beyond common man's understanding....itnaa aasan nahi hai ye prediction nahi to india ki best infra city Greater Noida ka ye haal nahi hota..

              Unse poocho jo last 10 yrs Noida RE par hi bet lagaye hue the....how they respond...Many of us who only invested in Noida apartments are far lagging in ROI compared to Ggn counterparts...so far true!!!

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              • #17

                #17

                Re : Why is GURGAON so NERVOUS?

                Originally posted by nipsy View Post
                Unse poocho jo last 10 yrs Noida RE par hi bet lagaye hue the....how they respond...Many of us who only invested in Noida apartments are far lagging in ROI compared to Ggn counterparts...so far true!!!
                But in Residential Plot ROI GGN is behind then Noida, too much behind.... , GGN do not even touch GZB in Residential Plot ROI... 3-4 years before Residential Plot rates was maximum 25-30K PSY in Ramprastha Colony/Vaishali/IP of GZB, at this time it is 1.3 Lac PSY in Ramprastha Colony, 1.1 Lac PSY in Vaishali , 1 Lac PSY in IP.... near about 4 times appreciation only in 3-4 years.... Let me know in which area Residential Plots in GGN achieve 4 times appreciation in 3-4 years.......

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                • #18

                  #18

                  Re : Why is GURGAON so NERVOUS?

                  Originally posted by saurabh2011 View Post
                  But in Residential Plot ROI GGN is behind then Noida, too much behind.... , GGN do not even touch GZB in Residential Plot ROI... 3-4 years before Residential Plot rates was maximum 25-30K PSY in Ramprastha Colony/Vaishali/IP of GZB, at this time it is 1.3 Lac PSY in Ramprastha Colony, 1.1 Lac PSY in Vaishali , 1 Lac PSY in IP.... near about 4 times appreciation only in 3-4 years.... Let me know in which area Residential Plots in GGN achieve 4 times appreciation in 3-4 years.......
                  Dont forget that in Noida floor registry is not allowed whereas its allowed in GGN. Big pocket people prefer plots/land they are more interested in Noida.

                  Anyways....i wish well for whole NCR and believe entire NCR RE market would behave alike.

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                  • #19

                    #19

                    Re : Why is GURGAON so NERVOUS?

                    I think old avatar(vkumar1) of deepauls started a similar thread last year. Since there was not much going on in Ggn thread since last few days, so he thought of adding some masala.

                    Coming back to main topic of discussion, Ggn has avg shelf time of 9 months for any new launch and Noida has 24 months. This gives enough idea about the difference in market type and investor's liking.

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                    • #20

                      #20

                      Re : Why is GURGAON so NERVOUS?

                      Thank you depauls for bringing the awareness, and pointing out the issues with GGN. You took time to do the analysis so that deserves credit for the posting.

                      I think we have a split of optimists and pessimists (speaking in the context of real estate only) on this board, which keeps the discussion interesting and informed.

                      Personally, I like to know the best case and the worst case as an investor. I follow the motto - hope for the best but be prepared for the worst. While I am invested in Gurgaon, I like to hear the bad news as much(if not more) as the good news

                      Let's keep the healthy debate going!!!

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