Delhi, sometimes referred to as Dilli, is the second-largest metropolis in India after Mumbai with a population of 13 million. Located in northern India on the banks of the River Yamuna, Delhi has the political status of a federally-administered union territory known as the National Capital Territory of Delhi.
From being the administrative capital with a population of 7 lakhs in 1947, to 13 .8 lakhs in 2001, Delhi is rapidly moving towards being a world city. At the heart of the National Capital Region lies the National Capital Territory of Delhi (NCTD). It covers an area of 1483 sq. km, comprising just 4.41% of NCR and 37.22% of its population.
The Delhi Metropolitan Area has been redefined comprising the NCTD, Ghaziabad-Loni Complex, Noida and Greater Noida-controlled area of Uttar Pradesh, Faridabad-Ballabgarh Complex, Gurgaon, Bahadurgarh Kundli and the extensions of the Delhi Ridge in Haryana.
Delhi is a mix of planned and unplanned development. Lutyens' Delhi and Chankyapuri with its majestic Embassy, school and office buildings stand in contrast to the commercial areas of Janpath which have grown unchecked. On the other hand, heritage structures of the Mughal era lend a quaint charm that is quintessentially "Delhi".
The Delhi resident enjoys privileges that no other city can provide - be they educational, cultural, medical, or shopping, food and entertainment, all of which are the best that the country can offer. Being 'primus inter pares' amongst cities in India, Delhites are privy to all the firsts that are launched in India.
Delhi boasts of a per capita income that is two and a half times higher than the national average. The affluence is reflected in the high spending power and extravagant lifestyle Delhi is famous for. The city with the largest number of automobiles on the road has also won the US Department of Energy's first 'Clean Cities International Partner of the Year' award for ''bold efforts to curb air pollution and support alternative fuel initiatives'' achieved by enforcing CNG-run public transport.
Infrastructure and Facilities
The process of planned development for Delhi was envisaged as a public sector led process with very little private participation. The Master Plan 2021 deviates from its predecessors to cater to a population of 23 million by 2021. Vision 2021, integral to the Master Plan for Delhi aims to create a world-class city through a purposeful transformation of the existing civic infrastructure.
The deviation will see a critical reform in the prevailing land policy and in following the public - private partnership model for redevelopment of existing colonies, and opening up
of an additional 25 to 30,000 hectares of land that will be required to provide for the 23 million citizens of the city by 2021.
The MRTS Network operates three lines with a total length of 65 km and 59 stations and will eventually cover 244.9 km. By 2017, 30% of the NCTD will be within a 15 minute walking distance from the proposed Metro stations.
The Greater NCTD has opened up to the mixed use of available land to meet the growing commercial needs - 2183 streets have already been notified for local commercial and mixed use activities, and shops catering to daily needs have been allowed on the ground floor of residential buildings.
Meanwhile, as part of its makeover plans for Delhi, the Planning Commission has sanctioned Rs. 2,270 crore in 2007 for its transportation network. This is 40% of the city's budget of Rs. 5200 crore. By the year 2010, more hotels, a multi-modal transport system and a world-class airport, nine museums, open air theatres, light and sound shows, vastly improved civic services, convention centres at Pragati Maidan, Yamuna diversity Park of 457 acres, a metro link to the Nehru Stadium and 38 high capacity bus corridors will be ready
On the National Highway connecting the city to Gurgaon, flyovers and underpasses are being planned at Station Road and Palam Road-Parade Road junction, making the international airport more accessible. An underpass at Rao Tula Ram is also under consideration to reduce congestion between Moti Bagh and Signal Vihar.
Real Estate Developments in Delhi
The real estate market is in overdrive in the city, in its run up to the Commonwealth Games in 2010. With a budget size of Rs. 9000 crore for 2007-2008, the Government is playing an aggressive role in developing the right infrastructure. The city's requirements for accommodation will push up rates of capital as well as rentals.
In the last 12 months, rentals have been rising sharply with the demolition and sealing drives on commercial establishments in the city. In fact, rates in Delhi surpassed Mumbai, with 40% escalation in Connaught Place, and 30% in the rest of the city.
With the advent of large format retailing, the demand for larger commercial spaces will create further appreciation in commercial property rates. Reliance Retail acquired commercial property worth Rs. 980 crore in Vikas Puri, Rohini and Dwarka, with a total area of 5 lakh ft., causing ripples in the property market.
Delhi's residential property market is driven more by investors than by end-users was the opinion most experts in the business shared till the Master Plan 2021 was finally notified in February 2007. However, the increase in the FAR to 350 housing units on a plot of 175 to 200 sq. metres, permission for taller structures of upto 15 metres, and freeing up of 27,000 hectares of land in Dwarka, Najafgarh, Asola and Narela to private developers will see heightened activity in the residential property segment as well.
New colonies developing on the periphery of the original city limits drove city planners to strengthen infrastructure, causing real estate prices to shoot up. The Delhi Metro and the series of flyovers and under-passes crisscrossing the city on arterial roads has shrunk distances and far-flung suburbs like Jasola and Dwarka have woken up to the real estate boom, commanding rates of Rs.4000 -5000 per sq.ft.
In Dwarka, a further increase of 15-20 % is expected in 2007, especially in sectors 2, 6, 7, 9, 10, 11, 12, 13 and 14. East Delhi, adjoining Noida, which will get connected by 2009, property prices along the Metro, especially in sectors that will house stations -- 15, 16, 18, 32, the botanical garden and the golf course a rise of 20-25 per cent can be expected where prices are currently at Rs 4,000-5,000 per sq ft. Sectors 19, 26, 39, 40, 41, 47, 50, 51, 61 and 62 are also expected to gain. Once the Metro reaches Noida, the connecting corridors will see a rise of about 25-30 per cent
Capital values in Civil Lines, Ashok Vihar and Model Town have touched Rs. 80,000 to Rs. 1.20 lakh per square yard. Apartments are now priced at Rs. 3,000 to 4,000 per sq. ft. In Punjabi Bagh, Rajourie Garden and Janakpuri, rates per sq. yard have appreciated from Rs. 35-50,000 to Rs. 80,000 to one lakh. Apartments registered a jump of 100 to 150% in the last one year
In East Delhi, prices of 2-room apartments have escalated from Rs. 20 -40 lakh to Rs. 40-75 lakh. The countdown to the Commonwealth games will see further dramatic changes in this part of Delhi.
The squeeze in the commercial property market has led to substantial gains for landlords and lessors across Delhi, pushing up rentals to unimaginable levels of Rs.100 to 150 per sq. ft.
NRI Real Estate Trends
As private developers will play a more active role in the development of residential apartments in the Delhi Metropolitan Area, NRIs could explore investment options in these projects. The relaxed norms for construction within the city, with respect to floor area ratio and height of buildings will trigger more ambitious projects in hitherto undeveloped sections of Delhi.
DLF, Parsvnath and Ansals have luxury projects coming up in Delhi which NRIs could take a look at. The NRI city by Omaxe in the NCR is a self-contained township with amenities and facilities that match international standards.
Latest Real Estate Projects in Delhi
M2K group launched Victoria Apartments near Model Town in North Delhi. Sporting the best of amenities like a mini-golf course, multiplex and concierge services, the condominium will be built on 10 acres, of which only 2.62 will be used for construction. The rest will be maintained as a green belt, and will be close to a proposed mall, Metro and monorail stations adjoining Model Town.
- Parsvnath has an exclusive project La Tropicana on Maganine Road, Civil Lines, North Delhi on 17 acres housing apartments, penthouses and villas in a resort-like ambience.
- Paramount, also by Parsvnath, is located in Subhash Nagar near Rajourie Garden, and offers super luxury apartments and penthouses with the latest amenities in modern living.
- DLF's housing project in Chankyapuri
- Impressions by S G Estates at Vasundhara - Luxury apartments and penthouses
- Promenade at Vasant Kunj on an area of 4.5 lakh sq.ft. Three floors of shopping and an 8-screen multiplex are envisaged for this retail mall.
- Emporio at Vasant Kunj will house international luxury brands, and designed for a day-long spend at the mall.
- Courtyard in Saket, will have a retail arcade, anchor stores, food court, multiplex, gourmet outlets, office complex and a hotel
- DT City centre at Shalimar Bagh with the multiplex and retail stores catering to a huge untapped North West Delhi market.
- The Galleria in Mayur Vihar will target the East Delhi market, and will be close to the Commonwealth Village
- DLF Towers, Jasola, South Delhi on 0.83 million sq. ft will combine a retail and office complex with a food court. It will have 2 towers of 12 floors each on 3.18 acres.
- The South Court, Saket with 0.6 million sq. ft on 7 floors will have Lifestyle and Landmark as its anchor stores. Will also accommodate a hotel and an office complex
- Metro Malls by Parsvnath, at Inderlok, Shahdara, Seelampur, Tis Hazari, Kashmere Gate, Azadpur, Pratap Nagar, and Welcome
- The Copia Corporate Suites, Jasola by Realtech - 6 floors on 2.5 lakh sq. ft, a swimming pool, gym and terrace café
- Beta Commercial Towers by S.G. Estates in Vasundhara - retail and corporate spaces
Delhi's service sector has expanded due in part to the large skilled English-speaking workforce that has attracted many multinational companies. Key service industries include information technology, telecommunications, hotels, banking, media and tourism. Delhi's manufacturing industry has also grown considerably as many consumer goods industries have established manufacturing units and headquarters in and around Delhi.
Delhi's large consumer market, coupled with the easy availability of skilled labour, has attracted foreign investment in Delhi. Construction, power, telecommunications, health and community services, and real estate form integral parts of Delhi's economy. Delhi's retail industry is one of the fastest growing industries in India.
The American chain Wal-Mart is poised to enter India next year and the UK-based Tesco is hoping to follow - all hoping to corner a part of a retail market valued at $330bn a year and growing all the time.