What Value Does An 'NCR' Tag Create For Its Cities?

What’s in a name? Well, we would concede there is a lot, especially if we are talking about property markets. The fortunes of Pink City Jaipur’s four towns ─ Kotputli, Manoharpura, Chandwaji and Shahpura ─ could well change, if and when they become part of the national capital region (NCR) . We have seen the same happening with several cities in Uttar Pradesh, Haryana and Rajasthan earlier.

Today, 24 districts of Haryana, Rajasthan and Uttar Pradesh are part of the NCR. Resultantly, lucrative job markets have opened up in these areas. For investors, the inclusion of newer towns and districts, assures them of a relatively affordable entry into a prospective zone. Ketan Nautiyal, a real estate agent at Tapas Realty, says, “Being a small town in a value zone, adds to the potential of such towns. The rush of investments is good at various levels. Firstly, it will balance the population outflow from smaller to bigger towns, because people will see value in staying back and making the most of the opportunity. Secondly, businesses will see value in setting up shops at a relatively cheaper place and yet, have the advantage of connectivity to, say, Delhi or Gurugram.” Nautiyal adds he has seen Noida grow from a sleepy, gloomy town with extensive parcels of land, to become a hub of high-rises.

The volume of investments pouring into the existing NCR micro-markets are huge. For example, the authorities have proposed to develop an airport in Jewar at an estimated cost of Rs 19,000 crores. Private investments are also pouring into the NCR. The NCR is also attracting about 12.5 per cent of the private equity investments in India. Special Economic Zones (SEZs) in the NCR have also attracted many foreign investors. Meanwhile, there is a lot of emphasis on infrastructure in these areas.

“Business people should first examine the incentives on offer to begin to understand the value of SEZs, before examining the variety of SEZs that have been established in the NCR,” explains Vasundhara Rastogi of Dezan Shira & Associates. Similarly, warehousing clusters have also boosted the momentum in the market. Smaller towns are now being seen at a vantage spot and the more money that gets pumped into these towns, the more growth we get to see. There are more jobs in the city and that becomes a reason to stay back and invest.

Although Noida is infamous for its project delays, there is no dearth of realty investments in its micro-markets. “Real estate firms consider it as a market for which the buying appetite doesn’t die. Unsold inventory is a concern but where else do you get properties that are affordable and have a great future,” says M Mullick, a city-based broker.

Delhi-based homebuyer Sharmila Manchanda says she is waiting to get possession of her property in a sick project in Gurugram, but says it was a viable option back when her family had bought this property. “The proximity to the airport, the promise of a lifestyle, the job opportunities, the potential to get a healthy yield - all of it will remain if the project is handed over. The only difference I would have wanted, was to have put our money into a completed project,” adds Manchanda.

If Kotputli, Manoharpura, Chandwaji and Shahpura come into the fold of the NCR, property markets here would become quite lucrative, as has been the case with Alwar, Manesar and Bhiwadi, say trend-watchers. Jobs opportunities would increase and the demand for residential real estate would follow. Already, various educational institutions and real estate projects are in the planning stage in these areas. A branded tag of being in the NCR will lift its prospects.