Extension of Metro route will aid residential development

Ghaziabad caters primarily to the mid-segment and affordable housing segment. It is home to established housing clusters such as Kaushambi, Vaishali and Indirapuram while upcoming residential corridors include Raj Nagar Extension and developments along the NH-24 beyond Indirapuram, including the Crossings Republic township.

While a lack of land options has restricted new launches in the Kaushambi, Vaishali and Indirapuram clusters, they being already developed to a great extent and with a large existing residential population, these residential clusters have also recorded healthy capital appreciation. Recent project launches have been mostly in the upper-mid and premium segments offering luxury specifications and upgrades from the usual, mid-segment housing options.

Prices in the Kaushambi and Vaishali areas are in the range of Rs 5,500-6,500 per sq ft while in Indirapuram prices are in the Rs 4,800-5,500 per sq ft price range. The affordable residential clusters are in the average price range of Rs 2,200-3,500 per sq ft. The upper end of the range is commanded by projects which are completed or close to completion in Crossings Republic, while the newer projects in NH-24 are in the lower price band of Rs 2,200-2,600 per sq ft. The Raj Nagar Extension corridor on NH-58 is also priced in the Rs 2,600-3,000 per sq ft range.

All these clusters have contributed the maximum to new project launches that have been recorded in the Ghaziabad residential market over the past few quarters. While, Raj Nagar Extension may be seeing project launches by first-time or lesser known developers, the likes of Assotech, Ansal API, SARE, Ashiyana Group and Wave Group have come up with projects on NH-24, which includes Crossings Republic as well.

With prices in the Noida Extension precinct in the Noida sub-market expected to be higher, Ghaziabad will continue to garner interest, particularly for affordable projects in Crossings Republic, Raj Nagar Extension and on the NH-24.

The Ghaziabad sub-market also enjoys a large population base from the industrial sector and SMEs, and low-income workers looking to upgrade to better accommodation. In the near future, the better areas within Ghaziabad, such as Indirapuram and Vaishali, should continue to hold their ground while the lower-income profile areas of Sahibabad, Raj Nagar Extension and further developments coming up on NH-24 and GT Road will account for majority of sales volumes.

Infrastructural developments such as the extension of the Metro route to Ghaziabad and widening of the NH-24 to six lanes are likely to aid in furthering residential developments in this area. The core demand is likely to emanate from the low and middle-income population for the residential offerings in this corridor.

The writer is associate director, research & REIS, JLL India