Bhiwadi: Think long-term
The Bhiwadi market, driven by strong residential demand, shows promise, but investors should not expect immediate gainsrealestate Updated: Sep 02, 2013 17:48 IST
From a small nondescript rural settlement with a small population of 1624 persons in 1971, Bhiwadi’s gradual transformation into one of India’s largest industrial hubs has opened up a huge residential demand. A flourishing property market on both sides of the Bhiwadi-Alwar Bypass Road bears testament to the fact that Bhiwadi is emerging in a bolder and bigger avatar in the region.
Real estate experts say that residential demand is up by 400% in the last five years with future projections getting stronger because of infrastructural development projects, prominent among them being the proposed regional rapid transit system from Delhi to Alwar.
Ankur Gupta, JMD, Ashiana Housing Ltd, says the group, which was the first real estate company to entered Bhiwadi in 1993, basically set the housing development ball rolling.
“My father had the foresight to look at this town and see how the scenario would change in the future. A flat which would cost R2.5 lakh used to be rented out at R3000 a month in 1993. The good rental yields were indicative of the fact that there was a definite requirement of quality housing and since then we have not looked back and completed approximately 4000 homes in Bhiwadi. We see amazing interest from buyers as more and more jobs are being created here,” Gupta adds
The place which is the biggest hub of construction activity at the moment is the first 20-km stretch of the Bhiwadi-Alwar Bypass Road, which is just 5 km from National Highway 8. Developers who have started their group housing projects and townships are Ashiana, Avalon, BDI, Innovative Colonizer, Cosmos, Kajaria Infra, Konark, Krish Infra, MVL, R-Tech, Nimai, Star Realcon, Tera Elegance, Ashadeep etc.
“Group housing projects in which possession has been offered are Ashiana Angan, Ashiana Bagicha, Ashiana Green, Ashiana Garden, Ashiana Village, BDI Sunshine City, Avalon Garden, Krish Vatika, Kajaria Greens, Trehan Hill View Garden etc. The current prices in projects under construction are between R2500 per sq ft to R2800 per sq ft while the ready-to-move-in flats cost between R2800 per sq ft to R32,00 per sq ft. Some developers have also offered plots in the price range of R24,000 to R28,000 per sq mt but plots are not so much in demand as flats,” says Amit Singhal from Dimensions India Property Services.
Since sectors roads have not been constructed yet, all the major developments are just along the Bhiwadi-Alwar Bypass Roads, says Singhal. Once the area is divided in various sectors as per the Master Plan 2031, and sector roads come up, construction activity will pick up pace, he adds.
Many local brokers say that the end-user-investor ratio is 30:70, which means there are more families opting for rented accomodation than home buyers. This is because those who have been working in big industries like Honda, Shree Cement, St Gobain, Gillette, SRF, Usha Sriram, BKT Tyres, Hi Tech Gears, etc prefer rented accommodation because it’s cheaper than Manesar and Gurgaon.
Realtors and experts lay major emphasis on the future development plans in the Master Plan 2031 of Bhiwadi which has proposed a Greater Bhiwadi Complex spread over both sides of the Bhiwadi Alwar road.
According to the Master Plan 2031, the Greater Bhiwadi Complex (Bhiwadi-Tapukara-Khushkhera Complex), which is one of the priority towns identified in the Regional Plan-2021 of the National Capital Region and is located at the eastern boundary of Rajasthan in the north eastern part of Alwar district, comprises of 99 revenue villages covering about 250 sq km.
The plan envisages that the residential use area is planned in the form of sectors with an average size of 60 hectare. A total of about 120 residential sectors have been planned. Besides, 45 sectors are kept under high-density mixed use where, along with residential, commercial and institutional use shall also be permitted both vertically and horizontally as per the requirement. It is stated in the plan that “Provision has been made to accommodate 15 lakh population by the year 2031. Out of total 120 residential sectors, six are of low density, 98 are of medium density and 12 are of high density.”
The formation of National Capital Region Transport Corporation (NCRTC) to develop the regional rapid transit system (RRTS) from Delhi to Alwar is a major development.
Despite such a positive outlook, property experts suggest that investors should weigh the pros and cons before investing their money as any expectation of short-term gains would be too optimistic.
“The Bhiwadi Chapter of Credai has been closely working with government bodies on various developer issues and pushing hard to get things done. But it will take at least five to seven years to develop proper infrastructure -- whether its RRTS, stormwater management system, solid waste management system, sector roads or internal transport system. So anybody who is putting his money here should expect good returns only after five to seven years,” says Vishal Gupta, managing director, Ashiana Housing Ltd.
Many experts say that the announcement of rapid rail transit corridor between Delhi to Alwar has not had any impact on real estate prices in Bhiwadi. “It’s easier said than done. It still sounds like a distant dream because it’s an elevated corridor which requires huge amount of work,” says Singhal.