Narela, Delhi-NCR: Growing at 7-10% annually

With the current government's increased focus on providing 'housing for all by 2022', the local governments of various states are opening up newer areas for the construction of affordable housing. Delhi has been constantly battling with a lack of apartment supply and increasing property prices. While the surrounding suburbs have filled in the gap, the prime city of Delhi has a lot to offer for fulfilling the housing needs at affordable prices.

As part of Delhi's 2021 Master Plan, five new urban extensions were planned across it, with a development potential of 60,000 hectares. Narela has been planned as the third sub-city, after Dwarka and Rohini. It is located in the north-west part of Delhi and came up largely as an industrial hub. It lies just off NH-1, linking Delhi to Chandigarh and beyond. The transport linkages have been instrumental in furthering its development.

With Narela yet to emerge as a full-fledged mid-segment residential location and being a largely industrial town, property prices are geared towards the lower end of the spectrum. A Janta flat typically has a built-up area of about 200-400 sq ft and is priced between Rs 7-11 lakh, while an LIG flat has a built-up area of about 300-450 sq. ft and MIG flat of about 850-900 sq. ft. These flats are priced at Rs 20-25 lakh and Rs 40-45 lakh, respectively.

In addition, many private developers are also offering builder floors or smaller, cooperative housing/welfare society flats. These apartments are priced in the range of Rs 10-35 lakh. With properties at Narela clocking a quarterly appreciation to the tune of 1.7-2.5 per cent, the average property values here are currently about Rs 3,000-4,200 a sq ft, depending on the project and amenities.

The existing rail network is planned to be the centre of rapid mass transport around which the upcoming residential and social development projects shall revolve. A lot of planning and land consolidation exercise has been carried out by the nodal development agency. Around 10,000 hectares have been set aside for this urban extension project here, with over 42 per cent land-use dedicated to residential development.

In addition, the extension of the TOD Policy to Narela with the coming of the metro here, will also augment the development potential while also resulting in traction for private sector participation.

Affordability, connectivity and infrastructure development are the key drivers in creating a residential hotspot. The upcoming Metro project, which will connect Kundli to Delhi through the Dilshad Garden-Rithala route via Narela, the improved road connectivity in the form of KMP and KGP Expressways, and the Rapid Rail Transit System will ensure that Narela emerges as a good investment destination over the middle to long term.

The writer is associate director - research & real estate intelligence service, JLL India