Does The ‘NCR’ Tag Create Value For The Real Estate Markets In Its Cities?
45-year old Kartar Sahni, a broker in the National Capital Region (NCR) says that the NCR tag has helped him market his stock better. In 2015, the NCR saw three more inclusions- Jind, Karnal and Muzaffarnagar. Sahni, who was dealing with properties in Karnal back then, saw a spurt in the number of people who were interested in properties therein. Though he knows little about the Rajasthan state government’s plan to propose Kotputli, Chandwaji, Manoharpura and Shahpura towns to be included in the NCR, he says that there is no doubt that the tag reshapes the contours of real estate like never before.
The NCR tag increases the real estate potential of its cities
While Noida and Gurgaon are the most popular among the NCR markets for any real estate buyer, growth has helped Bhiwadi look up too. Kavi Sachdev, a private bank employee was transferred to Bhiwadi in 2015. “I was initially very hesitant to consider this move. Born and brought up in Agra, I had shifted to Delhi for good but Bhiwadi turned out to be very lucrative for the bank and for my experience as well." Sachdev, who is in the trade department of the bank says small towns with the NCR tag pull in a number of investors, all of who understand the long-term value of being included in the NCR. “There was potential in Bhiwadi but it trebled the moment new businesses set shop,” says Sachdev. Sachdev adds he's considering a 2BHK property in Bhiwadi just like many from surrounding areas who are looking for a second home.
Not all NCR destinations are made equal
While a new market is another avenue for public and private investments, it is not always a smooth ride either. Take, for example, the case of Bharatpur. The district which had come under NCR in 2013 lost a lot. Locals say that while development reached Neemrana and Bhiwadi, it fell shy thereafter. As a result, locals who were engaged in small businesses and industries, were the most affected. Mustard oil processing, the brick kiln factories – all of which thrived once upon a time, has fallen on its face leading to unemployment, while high taxes, credit inaccessibility and market dynamics have made things worse. Bharatpur was also expected to tame pollution and consequently, the Rajasthan Pollution Control Board banned the construction of roads.
Real estate cycles also go up and down with such developments. Vasant Singh, broker, Right Agents, says that often property markets adjust to the market forces but in some cases, the blow might be hard. If the four towns in Jaipur do make it to the NCR list, will the properties from these places add to the stock and the burden to unload it? “There is more to gain and little to lose. So far, only locals and small businessmen have shown interest in the property market. We do not think that our stock will be any burden for a few years at least but the tag will give us a platform.”
Many developments may follow NCR tag
While there are problems, there is always a silver lining too. New airports, roads and resultant connectivity, ease of doing business, infrastructure both, social and physical, add value to the existing fabric of a town. While we do not know whether Kotputli, Shahpura, Chandwaji and Manoharpura, will make it to the list or be turned down just like Jhunjhunu district in 2014 but on a positive note, these towns may also be the next Noida or Gurgaon in the making.
It is way too early to comment upon whether the four Jaipur towns will make it as the NCR but the proposal has turned attention to the potential in these places. There may be no high-rises but educational institutions are coming up and so are plots for sale.