Will Delhi Metro spur growth in real estate in Faridabad?

Faridabad, the new and emerging hub of the NCR (national capital region), received a new lifeline in the form Delhi metro rail. Metro is developing nine stations in the area offering connectivity within Faridabad in addition to connecting it to Delhi, Gurgaon, Noida and Ghaziabad, quickly and effortlessly.

Transforming the Livability Index

Currently, transportation in Faridabad is restricted to autos and other private modes like cars. This is a far cry from the bus services and other modes available in Gurgaon and Noida, along with good quality roads connecting it to the city. The civic infrastructure in Faridabad is underdeveloped and the city offers lower standard of living as compared to other areas in the NCR. With Metro, however, the livability index of Faridabad will improve. This move comes after years of reliance on local trains and shared auto rickshaws.

Property prices in Faridabad  

Metro will also positively impact the price of property in Faridabad, which has been stable in the last few years while many ready to move in properties in Faridabad are showing trends of marginal decline. In fact, Charmwood Village and Road, the premium locations, have shown downward trends along with the newer areas like Sector 46 and Sector 85, while Suraj Kund and SRS Pearl are the only two areas doing well in terms of real estate.

Prices of properties in Faridabad are not comparable to its richer cousins in  NCR including Noida and Gurgaon mostly due to poor infrastructure. Gurgaon and Noida have also grown in terms of commercial developments creating self-sustainability. However, with the Metro, the prices may rise by 5-10 percent.

Changing graph of commercial properties

Faridabad has been the last in attracting the IT and BPO industry, as compared to Noida and Gurgaon. But, when the Metro brings the city closer to the national capital, it might spur commercial real estate activity, thereby pushing up the value of residential property for sale in Faridabad. So far, there has been sporadic growth of commercial properties in Faridabad, both in office space as well for malls and entertainment. The presence of a large company headquartered in the city can give the much required push to commercial constructions in the area.

There is a lot that Faridabad can offer in terms of real estate, if it undergoes some critical infrastructural development. The first step has been taken. Rest is expected to follow.

(Katya Naidu has been working as a business journalist for the last nine years, and has covered beats across banking, pharma, healthcare, telecom, technology, power, infrastructure, shipping and commodities)