The Emerging Real Estate Destination of Faridabad

The Emerging Real Estate Destination of Faridabad

by George Gonigal

Chasing the real estate development in its counterpart cities of Gurgaon and Noida, Faridabad has emerged up as one of the most sought after destinations for property investment in the National Capital Region (NCR), in the past couple of years.

Of course, real estate investment in Faridabad offers a substantial room for growth unlike most parts of Delhi, Gurgaon and Noida that have already reached their peak levels, and perhaps that's why investors now prefer to park their monies in the emerging property market of Faridabad.

Well, the city, of late has been shedding off its image of a traditional industrial city that remained secluded in the region for decades, and you can now witness modern properties with state-of-the-art infrastructure and facilities all across the city.

Residential real estate scenario

Faridabad has been a subject of intense construction activities at least for the past 5-years, and country's most prestigious real estate developers have launched their projects in the city quite ambitiously.

Omaxe, Eros and RPS have already set up their foothold in the city with their huge residential projects, while Business Park Town Planners (BPTP) is set to develop a mega township, covering as much as 1500 acre of land in Sectors 5 and 7.

As per an estimate, Faridabad will add some 15.94 million sq. ft of space in the residential real estate, by 2009-10, and the demand side would keep a decent pace with the supply. However, the city-based consultants point out that the absorption rates would still remain low owing to the excessive additions in the segment. In this case, it may be mistaken that markets are slowing down but in actuality, the supply would be far in excess of the demand volumes, say Abheek Sharma of Fairdeal Properties.

On Capital Values

The capital prices of residential properties in prime areas have reportedly gone up by 25 per cent in the past 18 months, although the same have been stabilizing for quite some time now.

At present, the capital values that vary between Rs 1,450 and Rs 3,850 per sq. ft for apartments in prestigious projects may fetch marginal appreciation. According to industry veterans, investing in Faridabad Real Estate could be beneficial with long-term horizon of 5-10 years.