A 38-acre plot of railway land at Sarai Rohilla here looks set to fetch the highest price in the National Capital Region (NCR) since the slowdown started two years ago. Experts say the deal size could easily top Rs 1,000 crore.
Railway Land Development Authority (RLDA), which develops railway lands across the country, has invited bids from developers to re-develop the plot situated barely 5 km from the central business district of Connaught Place. Bidding is expected to take place in late June, said Desh Ratan Gupta, GM-projects, RLDA.
Last week, 19 developers, including Tata Realty and Infrastructure, Godrej Properties Ltd and Reliance Infrastructure Ltd, attended a pre-bid meeting.
For developers such as Mumbai-based Akruti Nirmaan, the bidding is an opportunity to gain a foothold in the NCR. “A project of this magnitude will help us develop a large parcel in the heart of the city,” said Col RS Malik, chief operating officer, Akruti Nirman.
The bid will strongly impact the real estate market of Delhi as substantial high-quality residential and commercial space would be released close to Connaught Place, said Amit Kaicker, head of Land and Industrial Agency for North India at property consultancy Jones Lang LaSalle Meghraj. Kaicker, however, stressed that the project’s timely completion would depend upon the Municipal Corporation of Delhi’s responsiveness with regard to approvals and plan sanctions.
In recent months, high value realty deals have again made news in the NCR. While market leader DLF bagged a 350-acre plot for Rs 1,750 crore in Gurgaon last year, New York-headquartered investment firm Brahma Management clinched a 13-acre plot in Gurgaon for Rs 620 crore this year.
“(Now that) the residential market is ...almost at the 2007-2008 price values, I reckon the bid will fetch a higher price,” said Kaustav Roy, executive director-India at realty firm Cushman & Wakefield.