NH-58 - Still not very expensive

Now Developers Provide Prevailing Rates, NH 58 Are Not Very ExpensiveCompared to other NCR areas like as Gurgaon, Faridabad and Noida, rates offered on NH 58 are not very expensive the prevailing rates in the location still have scope of decreasing further
N H 58 in Ghaziabad or the Delhi-Meerut Highway has emerged as an important investment destination for private de velopers. About 14 developers have launched residential projects in the area, primarily targeting customer bases in Ghaziabad, Meerut and Delhi. While prices had appeared to be on the rise beginning of 2008, a stagnation seems to be prevailing at the moment. Compared to National Capital Region (NCR) areas such as Gurgaon, Faridabad and Noida, rates offered on NH 58 are very affordable.

"The connectivity of the area appears to be its biggest USP," said Sunil Jindal, CEO, SVP builders. Several infrastructural projects are in the pipeline that will bring the surrounding smaller towns with greater access to Ghaziabad and Delhi. A new road is to connect NH 24 to NH 58 at the estimated cost of Rs 100 crore, while GT Road will connect to NH 58 via Noor Nagar along the Hindon embankment at Rs 100 crore. Master Plan Road near Kharera village along Hindon river will be 45 ft. wide is estimated to cost Rs 200 crore. Besides, a rail over-bridge is pro posed near Diamond Chauraha to Ghaziabad Hapur Raiol section at a cost of Rs 25 crore.

"This area has reasonable projects with reasonable investment potential from a 5-year point of view," said Vineet Singh, Business Head, 99acres.com. NH 58 has seen developers such as the Ansals, Ashiana, Landscraft and Piyush Group enter the area.

At a time when prices in Gurgaon, Faridabad and Noida far overshot expectations, making most homes unaffordable for the average middle class buyer, projects on NH 58 are comfortably priced within Rs 2000 per square foot. For instance, Gulmohar Greens, a 2 & 3 BHK project, by SVP Builders offers apartments of area 1290 and 1590 square feet within Rs 1784 per square foot. At an additional cost of Rs 110 per square foot, extra features such as wooden flooring and modular kitchen can be provided.
The project is to be completed by the end of 2010. Gulmohur Gardens is located on NH-58 next to Raj Nagar. Krishna Gardens has smaller flats of area within 950 1000 square feet at a price tag of Rs 1892 per square foot. These are classified as premium small apartments.

NH 58 is undoubtedly more affordable. But its distance from urban hubs such as Connaught Place and Noida is 35 kilometres and 25 kilometres respectively. Thus, it is not a very appealing residential destination for young professionals who work in the city. The clientele would be limited to those outside Delhi.

However, the prevailing rates on NH 58 still have scope of decreasing further. "About 6 months back, rates were around Rs. 2500 per square foot on NH 58 and are now below Rs 2000 per square foot, which is a fall of about 20-25 per cent. Ideally, prices in this area should be between Rs 1500 - 1600 per square foot, considering the prevailing market sentiment," said Singh.

Source: The Indian Express