The Real Estate Market at Kundli in Haryana's Sonipat district Holds Great Potential, thanks to several ongoing and proposed development projects in the Region. These include the Kundli-Manesar-Palwal (KMP) Expressway, the Rs 5,000-crore Rajiv Gandhi Education City at Sonipat, the 100-metre-wide road from the IGI Airport to Narela, improved rail connectivity (Kundli is to have a metro stop as part of a rapid rail transport system), a proposed logistic park, and a textile park.
The premier developer in the Kundli region is the TDI Group. with the 1,250-acre land bank. Others include Parsvnath Developers, Maxheights Dreams Homes, Ansal Properties, Omaxe, Parker Group, Raheja Malls, Eldeco County, Anant Raj, Tulip Infrastructure, Collage Group, Eros Group, AJS Builders, Divine Group, Big Jos, Shree Vardhman and Jindal Greens.
The Kundli-Sonipat belt offers moderate-to-good returns on investment in absolute terms. However, the return on investment (RoI) on Real Estate is lower than elsewhere in the national capital region (NCR) such as Noida and Gurgaon. The average plot price is a little more than Rs 25,000 a sq yard - a huge jump from Rs 5,000 a sq yard, which the region commanded a few years ago when the projects were first launched.
There has been 30-40 per cent appreciation in apartment rates since 2007-08, implying the annual Property appreciation rate has been in the range of 6-10 per cent on an average. During the same period, property rates in Noida and Gurgaon have more than doubled. The current rates for commercial property are upwards of Rs 8,000 a sq ft and are likely to maintain growth, albeit at a slow pace.
The flip side
Despite the initial euphoria, many of the infrastructure projects of the Kundli-Sonipat region have witnessed extremely slow progress. Due to the delay in the KMP Expressway, the property market in the region has not taken off with the initially anticipated speed. The region lacks critical mass in terms of population, and is yet to emerge as a preferred office destination for IT/ITeS organisations. The occupancy level in the existing projects is just around 25 per cent.
Signs of basic infrastructure such as schools and hospitals are yet to make a mark in the region. The affordability tag is gradually losing relevance, though the price points at Kundli are still lower, compared to other areas in the NCR.
This region has Great Potential thanks to its proximity to North Delhi and the Delhi borders. Investors with constrained budgets can still explore Kundli. If the proposed infrastructure and development initiatives go on stream, Kundli can get into higher gear. Investors should maintain an investment of property horizon of three-five years to realise a decent RoI.