DELHI: The real estate sector, which showed sluggish business during the last year, has a lot of expectation from the year 2014. Though the players in Millennium City admit that they are expecting the growth only after the general elections, scheduled to be held in May, but still they are hopeful that their business will recover and will see new highs this year.
"Gurgaon's property market which is currently witnessing a slowdown, is all set to regain its lost momentum in 2014," said Harindra Nagar, MD, Paras Buildtech. He added that he expects the Gurgaon's real estate market to grow at around 8 per cent till the general elections. Later, the growth will depend on the new government's policies. With a government favourable to development process, the growth rate might touch the double digit figures.
The real estate market of the city slumped down to below 5 per cent in 2013 and now the whole industry is looking forward to this New Year. Ajay Aggarwal, managing director of Mikrotek Infrastructure shared the similar views, said, "We expect moderate growth rate till the general elections, thereafter, things will depend on the contours of next government," said.
He, however, added that it will also depend on inflationary pressure and RBI's stance on policy rates.
Besides, the industry expects the government to operationalise the Dwarka Expressway and expansion of rapid metro. "These two infrastructure projects along with affordable housing policy will have a major impact on the real estate sector in Gurgaon. As for basic amenities, HUDA has recently completed the laying of water supply line. It is yet another step towards the favour of end users," said Aggarwal.
The real estate industry has high hopes with the favourable policies of the Haryana government as well.
Aggarwal said that the state government is more or less in tune with the time and keeps updating its policies accordingly. The implementation of affordable housing policy will be closely watched by a section of developer community, people and investors. "The government needs to move swiftly to provide basic amenities for the areas on Dwarka Expressway so that people could move into ready projects," he said.
City Offers Realty Ground
In terms of development of real estate sector, the experts believe that the Public Private Partnership (PPP) model is increasingly being supported by the government to boost the infrastructural activities in Gurgaon. "This collective growth strategy involving contributions from public and private sector are expected to revamp the city's environment. Faridabad - Noida - Gurgaon (FNG) Expressway, Southern Peripheral Road and Kundli- Manesar-Palwal Expressway are major corridors that are witnessing prominent residential developments," said Nagar.
Aggarwal said that the mere fact that Gurgaon continues to be the first stop for MNCs, speaks volumes about the sub-city. It is heartening to see authorities to be in tune with the time and planning infrastructure for new areas as per changing needs.
The Millennium City doesn't offer a problem-free city for developers, but a city riddled with many difficulties related to real estate issues. They developers say that the infrastructure laid out in Gurgaon is showing the signs of overburden and seems to be not in tune with growing demands of the city. The traffic snarls and the security issues in the sub-city are proving to be the biggest obstacles in pushing the real estate here further.
"The old parts of Gurgaon are facing issues of overburden on infrastructure. It needs upgradation on an urgent basis," said Anil Kumar Sharma, President, CREDAI-NCR. He added that as for newer parts, congestion-free commuting from Delhi and Jaipur side will add more value.