Uttar Pradesh (U.P) is the 5th largest and most populous state in India. The surrounding states of U.P are Uttarakhand, Haryana, Delhi, Bihar, Madhya Pradesh and Himachal Pradesh. The two neighboring countries of India, i.e. China and Nepal, share their boarder with Uttar Pradesh.
UttarakhandUttrakhand was a part of Uttar Pradesh before 2000. After getting the designation of a separate state of sovereign India, the state got an approval of one of the most beautiful states of India due to its elegant natural scenarios. This state is known as "the Land of God". This state has become the point of attraction for the adventure lovers. The nature has blessed this state with excellent natural beauty, range of mountains, rivers, forests, and many more other natural gifts. After Kashmir, this state is considered as the next paradise of India.
Real Estate Scenario
Uttar Pradesh In India, Uttar Pradesh is the second state just after Haryana, where the investment in real estate is making very fast strides. From last few years, the investment position in real estate in Uttar Pradesh has become significant. The investment rate in properties is growing drastically in U.P, which has different aspects. Therefore, it becomes a place to make handsome investments. The builders are building brassy shopping complexes and other basic requirements according to the demanding needs of the people. Big and elegant residential units are also being made by the real estate builders.
The state has realized the importance of reviving the present infrastructural conditions and accordingly are taking all necessary measures in this direction. The efforts for improving the infrastructural conditions in U.P have been started from both corners, government as well as private. The real estate market in U.P has gone through a huge swing. The continuous efforts and resultant development in the field of real estate, have made a paradigm shift in the state in the context of the whole nation. The state has moved ahead with a new identification in the world of real estate.
Meerut, Ghaziabad, Noida, Greater Noida, Agra and Vrindavan are the some places in U.P, where the flurry construction work is going on. The construction works are flourishing in these selective towns and cities due to different reasons. For example, Ghaziabad is the fastest growing industrial city in India and it is also influenced by Delhi urbanization to a larger extent. Meerut is the fourth largest city in India in term of its population. Therefore, to fulfill the growing needs of these cities, commercial, industrial and individual real estate constructional works are going on the anvil in and around.
Uttrakhand The main reason of rapid growth in real estate in Uttrakhand is concentric to its special geographical construction. This state mainly depends on its tourism industries. Different type of visiting places are available in this state, be it for pilgrimage or for adventurous games, spirituality or camping. The tourist places of Uttrakhand are Nainital, Uttarkashi, Rudraprayag, Tehri Garhwal, Haridwar, Almora, Dehradun etc. The tourism industry is inducing the growth of real estate, and it takes place in different forms like hotels, resorts, firm houses, restaurants, sporting complexes etc.
The state has felt the importance of improving the present infrastructural facilities and accordingly taking all necessary measures in this direction. The efforts of improving the existing infrastructural conditions in Uttrakhand have been started since after getting the approval to become a separate state. Today, the real estate market in Uttrakhand is developing vigorously.
Commercial Real Estate The cost of the commercial properties in Noida, Ghaziabad, Greater Noida, Agra, Meerut etc is leaping upward due to the influence of the price hike in Delhi and its adjoining areas. However, in these places, there exists a high vacancy level of 26.2% for the grade A commercial buildings, or office places The commercial property market in Noida is seeing a slide in price, bucking the trend in the National Capital Region (NCR). However, this suburb of Delhi, has recorded a high vacancy level of 26.2% for its Grade A commercial buildings, or office space, in the first quarter of 2007.
The total supply of commercial space in Noida, Ghaziabad, Greater Noida etc is increasing very rapidly. The influx rate of new commercial spaces in these areas is so fast, that according to an estimation, by 2010, this will be more than the commercial space supply of entire Delhi. This also results in boosting the price of commercial space in these areas. Every year, about 2.14 sq ft new area has been added-up to the existing area of commercial real estate in the western part of U.P.
Industrial Real Estate MNCs and big Indian companies are concentrating in these areas for building large chunks of industrial real estates in different places of Uttar Pradesh. Some of the sensitive areas in this regards are Garmukhteshwar, Dadri, Gajraula, Muradabad, Hapur etc. Different type of government and private real estate undertakings have been establishing in these locations. Recently, the government is also concentrating in building big infrastructures for generating electricity in the North-Western part of Uttar Pradesh, which is closer to Uttarakhand state. Big manufacturing houses, like Reliance Energy, ONGC, L&T etc are trying to exploit the huge potential for generating hydro-electricity in these areas, and they have either started their projects or about to start their projects. Delhi Metro Train is an additional aspect in this paradigm. The metro expansion work will have been completed in a large part of Noida within a next couple of years. There is another proposal, which has been granted that metro will have been completed in a large part of Ghaziabad itself by 2012. The proposed expansion of metro in Ghaziabad will be completed in three phases and the estimated cost of the first phase only is Rs. 280 crore.
Rai Bareilly is another important site, where government is sincerely trying to build up different Industrial real estate projects in the near future. Noida is considered as one of the largest industrial town in Asia and Ghaziabad is considered as one of the fastest industrial town in India. All other suburbs of Ghaziabad and Noida are feeling the thriving growth of industrial real estate. Within a short period of span, this region has undergone through a paradigm shift. The prime reason of this paradigm shift in all three aspects of real estate is due to the migration of people and businesses from Delhi to this region.
Residential Real Estate The influx rate of population, specially in the western part of Uttar Pradesh has been increased in past couple of years. People from Delhi and different other parts of India, who have migrated here in search of new employment, finding it difficult to get shelters in Delhi. The scarcity of residential space and the sky limit cost of residential spaces in Delhi are the two responsible factors behind of it. Therefore, people prefer to stay in the neighboring towns of Delhi, like Gurgaon, Faridabad, Noida, Ghaziabad, Meerut etc.
These towns are well connected to Delhi through roadways and railways. All modern facilities are available in these towns and they are not depriving from any facility by staying over these towns. The recent growth of commercial as well as industrial real estates in these towns is another factor behind the growing population of these towns. However, a large part of these towns is free from any residential construction.
All these are the inducing factors for the growth of residential (individual) real estates in such a rapid way. Infinite number of residential complexes, flats, sky scrapers, firm houses, cottages etc. have been establishing in these areas. Uttar Pradesh has a lion share of this rapid growing individual real estate. However, the growth of this individual real estate in U.P is not homogeneous in everywhere. A few parts of West U.P. Are enjoying almost 75% out of the entire new construction of individual real estate. Many builders like DLF, Parsavnath, Gulmohar, Unitech, Gaursons etc are intensively competing with one another. It is estimated that by 2020, all vacant areas in Ghaziabad, Noida, Meerut and such other neighboring towns of Delhi, will be completely vanished.
Types of Real Estate and Their Nature:Uttrakhand Uttrakhand has received a couple of big real estate projects during the course of real estate boom. The project owners want to encash the vast natural beauty of this state through their projects. Different township projects have been emerged in the sky of real estate of Uttrakhand. Most of these projects are related to either residential or commercial real estate, and these are concentrating towns like Mussoorie and Dehradun. Many dominant real estate players either have entered in the scenario of real estate of Uttrakhand or they are about to enter in this scenario. These big players are Ansals, Parsvnath and DLF. They are mainly interested for commercial and residential real estate. The industrial real estate is also getting reasonable attention from these big real estate players in the present period of time. These are mainly for hydro-electricity, automobiles, fertilizers and IT based industry.
Another phase of real estate business in Uttarakhand is deeply influenced by the mall-phobia. A large number of malls with world class facilities and modern amenities, are opening in different towns of this state. Inevitably, Simla and Dehradun are the two towns, where the mall-phobia can be seen more prominently. These things are responsible for the hike in price of land prices in these towns by 5-6 folds. Therefore, from small to big size real estate companies, all are jostling with one another to grab more and more lands. The present trend of real estate growth of Uttrakhand can be understood from a simple fact that a small town Rudrapur of Uttrakhand, the value of real estate investment here is whopping $2 billion. If the present trend remains to continue over there, this town will become one of the most lucrative destinations of investment for the foreign real estate players
Upcoming Real Estate Projects in Uttar Pradesh & Uttrakhand
Uttar Pradesh Noida is an emerging IT city in India. There is a lot of hidden potential for IT growth in this city. Therefore, Unitech, the prominent real estate developer, is coming up with five IT SEZ (Special Economic Zone) and one big and resource full Information Technology Park in Noida (U.P). Another big real estate player, the SVP Group, is planning to construct an enormous shopping mall in Ghaziabad in 200,000 sq.ft. Area. The estimated cost for the project will be around 160 crore. In this projected affluent mall, there will have space of 145,000 sq.ft. Only for retail space, food court and for a multiplex. Like this project, there are many giant up-coming projects waiting in a queue. Gulmohar, Parsavnath, Supertech, Gaursons, DLF etc are the real estate players, which are competing among themselves for constructing different commercial, industrial and individual real estate constructions.
Uttarakhand There are many cities and towns, which are witnessing some big up-coming real estate projects or such projects which have been granted by the government. On the outskirts of Rudrapur, Indian Incorporation is pumping over Rs. $2 billion in a mega project "Pantnagar Integrated Industrial Estate".
Over 390 plots have been sold only in Rudrapur, which will have been used to set up industrial units. Big Indian industrial conglomerates have made agreements with the government to set up industrial real estate projects in Uttrakhand. These industrial concentrating are Tata Motors, Voltas, Nestle India, Escorts, Bajaj Auto, HCL, Parle Biscuits, Dabur, Kores India and many more. Toe other big players, which belong to automobile sector and IT sector respectively, are going to set-up space in this state for their future business activities. These two players are Ashok Leyland and Lenova.
Role of NRI's in Real Estate in Uttar Pradesh and Uttarakhand One of the major contributors to the growth of real estate activities in Uttar Pradesh are the Nor-resident Indians. They have understood the huge potential of the major cities and towns of Uttar Pradesh and to get the future benefits, they are investing in real estate properties. Different real estate companies of these two states have managed experts along with them, who provide advice to the NRIs regarding various tax implications and currency exchange provisions in the Indian scenario. The value of total investment made by the NRIs in India during the last one year is about $600 million and a significant share of this amount has gone in the favor of Utter Pradesh. The average worth of a single investment made by the NRIs lies in between of $10 to 15 dollars. The residential areas acquired by the NRIs usually have modern infrastructure with villas, apartments and kothies. Apart from these, other facilities include ladies clubs, splash pools, premium clubs, indoor game areas etc. Both the two states are attracting the NRIs through their lucrative geographical features, liberal government policies and through other natural resources, so that they invest more money in the real estate industries.