Metro phase 2 on the move

Under the phase II of Delhi Metro, a Metro rail line will connect the Indraprastha Metro station and Noida’s sector 32. The stretch of Mayur Vihar Phase I and Phase I Extension, which is along the under-construction Metro line, has thus hugely benefited. When the Metro plans were announced for this route some two to three years ago, there was a sudden price escalation. But over the past one year, in spite of the massive infratsructural development, property prices have witnessed very little appreciation. A year back, in April 2007 when Express Estates surveyed the area, it was found that rates were rising. Now, after the slowdown, brokers and the house owners are finding it slightly difficult to convince the buyers for this costly deal.

Since October, the rates of society flats have remained constant in Mayur Vihar Phase I. The rates range between Rs 5,500-7,000 per sq ft. A year back, rates were towards the lower side of this range. It is worth mentioning that rental market has also remained stable and has not seen any further growth over this period. The only exception is the high security amount that the owners have started to charge in the name of maintenance. But what makes this area a prime residential and commercial hub is easily evident by the magnitude of infrastructure development in Mayur Vihar Phase I.

Infrastructure boost
The Phase I not only enjoys an up-market reputation but is also located strategically. If you live in one of the apartments here and work in the commercial hubs of Delhi or Noida, you won’t have to travel more than 8-10 km to reach office. Besides this, the Phase I Vihar has turned into a leading commercial hub of east Delhi. Several developers like DLF and Mahatta Towers have already constructed their malls at the district centre here. Other names include: Eros, Sikka, TSL, and Anupam.
Ravinder Aggarwal, of Aggarwal Associates and a member of Association of Certified Realtors of India says, “Most of the demand in Phase I comes from people with deep pockets and who work in commercial hubs like Connaught Place or IT-ITeS companies of Noida.”

The place has earned a premium tag in the recent times because of its proximity to Akshardham Temple and the upcoming Commonwealth Games Village site. Another factor is the quality of developments. Pushkar Mahatta is director, Mahatta Towers, which has developed the Star City Mall at the district centre. He says, “The projects will change the face of UP Link Road and Phase I; one will soon find a huge influx of visitors and tourists.” The mall has been operational since September 2007.
Adjacent to the Star City Mall is DLF Galleria. The Eros Group has also bought land here for its upcoming hotel projects. Mahatta of Star City says, “Two commercial towers are coming up behind the mall, which will occupy around 3 lakh sq ft. A cinema complex is also coming up behind our mall. The hotel by Eros Group is likely to open in the third quarter of 2009.”

Mayur Vihar Phase I is well-connected to Noida, central and east Delhi, and Ghaziabad. The recently built toll road connects Phase I to DND flyway. South Delhi areas and the four proposed stadiums of Commonwealth Games enjoy good connectivity from here.

High prices
In Phase I of Mayur Vihar, there are many residential options. The cost of society flats ranges anywhere between Rs 5,500-7,000 per sq ft. In complexes such as Ashiana, Vigyapan Lok, and Vardhman Apartments rates go as high as Rs 7,000 per sq ft. These apartments lie close to the Metro line. Commenting upon the scarcity of land, Jagdeep Singh Ahuja of Ahuja Property Dealers says, “There is very little land available for new commercial development, so prices have been escalating for the last two-three years. The area has no land for any residential development either. Court’s order to raise the number of floors will provide more space for living.”
Plot prices: Plot prices have been stable for the last one year. At present the going rate is Rs 1.5-2 lakh per sq yd.

Citing the reason for stability, Aggarwal of Aggarwal Associates says, “The confusion over the Master Plan and the sealing-demolition drive by the government is keeping builders away from building anything new.” If you move away from UP Link Road and move inside Phase I, the price of plots is Rs 60,000 per sq yd. Also, whatever has been built is not occupied fully. “Vacancy is a problem. Companies and retailers are looking for spaces in the suburbs. Now they prefer to buy space rather than to rent a space at a high rate,” says Mahatta.

Strong rentals
The rental market of Phase I, II, and III is strong. People who work in central, south, and east Delhi or Noida can opt to live here on rent. But the rents are high. “Demand for rentals come mostly from IT professionals working in Noida and Greater Noida, and self-employed professionals like doctors and advocates,” says Ahuja of Ahuja Properties. In premium apartments like Vardhman and Ashiana, the rentals are Rs 10,000-20,000 per month or sometimes even higher. The rental increases if you get a well-furnished apartment.

Appreciation
Industry experts say that the prices will only move up after mid-2008. Till then, prices will remain stable. Industry players expect prices in Phase I to soar in next one year. Once the malls are fully functional and cleared, prices will rise rapidly. Aggarwal of Aggarwal Associates says, “I expect a rise of 10-20% in another one year. Prices of apartments will escalate by almost 50% of the current prices.”
The biggest boost to real estate in Phase I, Mayur Vihar will come from the Metro. “Metro will reduce the travel time to almost half, it will have a direct impact on the prices of apartments,” says Mahatta of Mahatta Towers. Also, one can reach ISBT with a 20-minutes drive. Up-market areas of Ghaziabad like Indirapuram are within easy reach via the National Highway 24.

Residents have easy access to shops and banks. Transportation is good and the pockets are well-connected to each other. There are many schools and colleges as well. Some of the names are: ASN International, Queens Marry School, and Amity. There is Maharaja Agrasen College in Phase I itself.

There are a number of private nursing homes and hospitals in the area as well. For those who wish to buy an apartment in Phase I of Mayur Vihar, a consultant in the area suggests, “Phase I is good for actual users or have their work places nearby.” But he cautions that rates here are high for a person with mid-level income. He adds, “Phase I and the extension is for the deep-pocketed, who can invest some good amounts for a small space. Else, there are better options available in Noida and Ghaziabad at cheaper rates.”