Property in North India
Northern India is one of the major geographic zones or regions of India. The Northern part of the country consists of twelve Indian states: Jammu and Kashmir, Himachal Pradesh, Uttarakhand, Haryana, Punjab, Uttar Pradesh, Chhatisgarh, Madhya Pradesh and Rajasthan. New Delhi, the national capital of the country also falls in Northern India.
The region is primarily rural, but is rapidly moving towards urbanization. Many cities in the states of Punjab, Uttar Pradesh and Rajasthan are on the path of rapid development. Respective state governments with the help of financial aids from the central government have undertaken development projects and reform initiatives for changing the face of these towns and cities.
The real estate sector in North India is booming due to the various reforms and initiatives taken by central, state and local governments. After the FDI was allowed in the real estate sector, this region has become a lucrative option for domestic and global investors.
Real Estate Scenario in North India Most cities in different states across Northern India are riding the realty wave. The last 3-4 years have seen unprecedented price rise in different types of properties like residential, commercial and industrial.
The region has the following states and cities:
Reasons for Price Rise in Property
- Rising Population: With rise in the population in the region, the demand for residential real estate has shot up. A rise in the working population is also another reason that has increased the demand of real estate and also sent the prices spiraling. Major cities and towns are being developed to accommodate the rising population and hence leading developers are undertaking projects to meet the increasing demand.
- Increasing Purchasing Power: With economic development, growing GDP, more work opportunities, the disposable incomes of people have also increased. This has lead to an increased demand for real estate. People are purchasing property both of living and also for investment purpose. Even global investors are putting in large amounts of money in the region because of the high ROI.
- Infrastructural Development: The Government of India, together with respective state governments is taking various initiatives and reforms to boost up the existing infrastructure. Wider roads, better water and waste management, new bridges and fly overs, are some of the efforts being made in various parts of the country to fasten the development process, thereby attracting global investment.
- Booming Retail Sector: The current scenario of growing retail sector has further shot the demand of real estate, thereby raising the commercial property prices. Changing lifestyles, increased consumerism have led to the development of numerous malls, specialty malls, multiplexes and retail showrooms. This is a common phenomena that can be seen in cities and towns in the Northern part of the country.
- Industrial Growth: North India is experiencing fast growth across industries. The Delhi NCR region of Gurgaon, NOIDA are the latest cyber cities with the former being declared as the 'IT hub' of India. Global industrial players are setting up their outsourcing units in India. The last few years have also had a tremendous growth in the IT/ ITES sector, that has also generated lakhs of employment leading to demand for both industrial and residential real estate.