Relatively affordable property prices driving demand

Ghaziabad emerged as the dark horse of NCR in 2015, with significant real estate activity seen across three prominent markets - Krishna Vihar, NH-24 and Raj Nagar Extension. These micro-markets saw new launches of residential apartment projects and plotted developments, and this trend is seen to continue in 2016.

Raj Nagar Extension is one of Ghaziabad's prominent areas for residential real estate development, and has been experiencing high growth in its real estate profile in recent times. Being strategically located on the National Highway 58, which offers excellent accessibility to several areas in Ghaziabad and also seamless connectivity with Delhi and Noida, Raj Nagar Extension is brimming with real estate activity.

Though most of the development is by private builders, the infrastructure has been planned by the Ghaziabad Development Authority (GDA). Raj Nagar Extension has been developed between two major highways. The six-lane Meerut Bypass connects Raj Nagar Extension with the two highways - NH 91 (also known as the Grand Trunk Road) and NH 58, which links Ghaziabad with Badrinath and Mana Pass on the Indo-Tibetan border.

Raj Nagar Extension has proved to be one of the best-performing real estate markets of Ghaziabad, and has seen good appreciation in overall property values. Between 2011 and 2013, property values in this micro-market increased by over 50 per cent. This upward trend has been tamed to a great extent in the current scenario, but Raj Nagar Extension still performs very satisfactorily. The relatively affordable property prices have been one of the major reasons driving demand for homes to this micro-market; however, it is the government-led infrastructure initiatives that have really changed the real estate profile of this region.

The UP government approved the proposal to extend the Metro line by 9.41 km from Dilshad Garden to New Bus Stand in Ghaziabad last year, and the Rs 1,125 crore 10 km elevated road from NH 24 in Ghaziabad to Raj Nagar Extension will soon be functional. These infra projects will improve the overall viability of Raj Nagar Extension even further. Also, a proposal to develop a Rapid Rail Transit System (RRTS) Anand Vihar in Delhi to Begumpul in Meerut will reduce commuting times for residents, which will obviously have positive implications on property prices along the RRTS.

Ghaziabad has been nominated as one of the 100 smart cities to be developed in India, and Raj Nagar Extension will be one of main beneficiaries. The major benefits of the smart city tag are modern technology-led lifestyle boosts with Wi-Fi, efficient waste management and energy-efficient buildings being some of the primary deliverables.

Currently, property prices in Raj Nagar Extension range between Rs 3,100-3,450/sq.ft., depending on the project and amenities offered.

The writer is CEO - operations and international director, JLL India