Defence Colony has grown over the years from a small centrally located officer’s colony of small bungalows to a large colony, well located in the NCR with much larger bungalows, rather buildings now. It is one of the prime localities of New Delhi, centrally located and surrounded by Lajpat Nagar, Lodhi Colony, South Extension and Greater Kailash I. It is well connected with Delhi’s CBD – Connaught Place and the International Airport. Several flyovers have reduced the waiting period at the numerous intersections around the colony. The presence of multiple gates, which restrict entrance and exit into the colony, especially in the night, has made Defence Colony, a relatively safe location within the NCR.

It is mainly a residential colony with a large number of bungalow plots, which have now been converted to very large multi-storied bungalows. The well-to-do occupants, owning several cars each, have converted its narrow streets into parking lots, due to lack of space within their compounds. At the same time it has several green areas for parks and also houses the prestigious Defence Club. The Defence Colony market is also well equipped with several showrooms, stores and restaurants. The presence of art galleries and fashion design houses has given this defence services area a prestigious name.

Last year, a Chinese MNC leased a three bedroom furnished apartment at an effective rate of Rs. 60,000 pm. A similar place without furniture also attracted a Korean company at a rental rate of Rs. 35,000 pm. A 1300-sq. ft. furnished apartment will set one back by about Rs. 50 lakhs. So this area is definitely a place well sought after for its large and private accommodation and central location. But now there seems to be limited space available for any further large-scale development. Table I below gives some of the indicative rates in Defence Colony for residential and commercial properties, along with those of its surrounding areas.

Dwarka is one of the fast growing urban sub-cities located in southwest Delhi. It lies between Mohammadpur and Najafgarh Road and is also bound by Indira Gandhi International Airport (IGIA) and Janakpuri. Dwarka has good connectivity with IGIA (1km), Connaught Place (CP) (18km), Dhaula Kuan (18km), Railway Station (23km), India Gate (15km) and Inter-state Bus Terminus (ISBT) (25km).

In 1996-97, Delhi Development Authority (DDA) allotted plots at low prices to co-operative group housing societies (CGHS). DDA has made good quality of construction a plus point for Dwarka. DDA has planned it so well that space and population ratio has been taken care. Last year, Mr. Jagmohan, Union Development Minister, inaugurated eight new projects in Dwarka. 'Bharat Vandana' is one of them. It is the most ambitious project spread over 200 acres in Sector 20 in Dwarka. The city government has launched a total of 516 flats for Kargil martyrs here, while DDA’s mega housing project has 1000 flats for lower and middle-income groups under construction.

Each sector of Dwarka is a self-sufficient sub-city, with efficient land use and green areas. Commercial properties have shops on ground and first floors with offices in the upper floors. A residential 2 BHK fetches Rs. 9 lakh, while a 3 BHK will get Rs. 13 to 16 lakh. Rental for a 3 BHK is low at Rs. 4000 to 5000 pm. In spite of the plus points in Dwarka, the development authority has been slow in providing the basic amenities. The road connected to the main gate in Dwarka is very congested. The construction of flyover near Palam village has been delayed for some reason.

One of the impetuses to real estate in Dwarka will be provided by the Delhi Metro project, when it gets completed in 2005. Line 3 connecting Dwarka and Barakhamba Road (23.5 km) will be one of the busiest sections of Delhi Metro Rail Corporation (DMRC). Dwarka station will be located at ground level, while most of the line will be elevated, though CP and Barakhamba Road stations will be underground. This will definitely boost the real estate market in Dwarka.

The district of Ghaziabad lies in the doab of the famous rivers of northern India, the Ganga and the Yamuna. Ghaziabad is located 20 km. east of New Delhi on the Grand Trunk Road to Meerut. It was founded in 1740 and has developed over the years into an industrial town, with manufacturing and processing industries including bicycles, railway coaches, diesel engines, computers, pottery, paints, chemicals, fans and radiators etc. There are three colleges affiliated to Meerut University. The surrounding plains in the district is very fertile, hence agriculture dominates the economy. But in spite of its proximity to New Delhi, it has lagged behind all the other satellite townships in the NCR.

The reasons are numerous and varied.

• In spite of its proximity to New Delhi, the connectivity has been crowded and poor. The Grand Trunk Road is old and dilapidated, and the bus services poor. The Ghaziabad railway station is inadequate for the city. More flyovers and better roads will help Delhi connect more efficiently with Ghaziabad.
• The image of an industrial town has been difficult to shed for the city. Hence the residential sector has not grown accordingly.
• The entire infrastructure has been very poor with water, sewage, power and roads being totally neglected.
• The perception of a middle class township too has been a tough image to drop for Ghaziabad. This is changing as the residential rates are affordable and top builders like Ansals, Unitech, Eldeco etc. have been moving in with large projects.
• A complete lack of retail and commercial properties has been a deterrent for the city attracting better companies and jobs.

The positive factors for Ghaziabad are fewer and potentially very attractive.

• The educational facilities are relatively good.
• The residential rates are affordable and attractive.
• The UP state government must focus its efforts on Ghaziabad, just like it has done for Noida and Greater Noida. The infrastructure will improve automatically as funds and processes flow in.
• The trend towards cleaner industries and higher employment for the city will reduce the commuting population to Delhi.

The property rates are given below.

• Commercial rate: Rs. 2000/sq.ft.
• Residential rate: Rs. 800 to 1500/sq.ft.

The population of Ghaziabad is 12 lakhs within the Mahanagar. Ghaziabad district has a population of about 30 lakhs, and this has grown by 50% over the last decade. For Ghaziabad to catch up with the other townships in the NCR, the UP state government must replicate the success stories of Noida and Greater Noida. The state must have the will and the finances to push Ghaziabad to the next level. It is a matter of time and resolve.

Delhi Municipal Corporation divided in 12 zones for administrative purpose. Karol Bagh is a largest residential zone. Also, 20% of the industries are located in this zone. Karol Bagh zone covered approximately 30.65 sq.km area. In the middle of the hubbub, the Pusa Institute calm and clear site and surrounded by green area.

Karol Bagh is a centrally located area. It is surrounded by the residential areas like Patel Nagar, Rajinder Nagar. Residential rates in this areas are higher. Capital values of these areas are from Rs. 3500 – Rs. 5500 per sq. ft.

Since 1950, Karol Bagh is famous as a market place. Located in heart of the national capital of Delhi. Karol Bagh is the biggest market in Delhi and it is famous due its resonable prices and the wide range of products it offers. Karol Bagh deals mainly in imported electronics, cellular phones and travel suitcases mainly from China. Karol Bagh market is also famous for wedding market. There are numerous parking lots in Karol Bagh, still there was a parking problem and traffic jam on road. The famous market places are Ajaml Khan Market, The Gaffar Market. The Ajmal Khan market is basically famous for show rooms. Gaffar Market is famous for electronic goods and it is also regarded as the grey market for these products and products like cosmetics. The Ajmal Khan park is near to Karol Bagh. Which is spread over 5 acres of land. Adjoining areas of Karol Bagh is Tank road which is famous for garments at a very low price. Jaya construction constructing 2 commercial project at Nawala, Karol Bagh road. Capital values of these areas are from Rs. 4500– Rs. 7200 per sq. ft.

Karol Bagh is surrounded by industrial area also and business firms and venture are also growing vigorously in these area like Anand Parbat, Naraina. Sant Engineering Industries on Faiz Road, Gupta Traders on Nanak Puri, Auro Electrical on Joshi Road are some industries in Karol Bagh area.

Karol Bagh market was characterized by acute space problem, parking problem still it attract maximum capital value and rental returns. Because it is centrally located and well connected to ISBT, CBD etc.

Table I below gives some of the indicative rates in Karol Bagh and surrounding localities for residential and commercial properties.

Mayur Vihar, situated in East Delhi, is a well-established and well-known residential colony. It is close to Nizzamuddin Bridge and South Delhi. Okhala and Noida are the nearest industrial areas.

Mayur Vihar is being developed by Delhi Development Authority (DDA) in three phases. Phase I has been completely developed, whereas Phases II and III are being developed. The flats in the developed area mostly belong to Group Housing Societies (GHS) and DDA-constructed Lower Income Group, Middle Income Group and Higher Income Group flats.

According to Mr. Naren Kumar, a property consultant, the capital value of the society flats in Phase I ranges between Rs.14 lakh to Rs. 40 lakh. In Phase II, the capital value is between Rs. 9 lakh to Rs. 25 lakh, and in Phase III, the range for LIG is Rs. 5 lakh to 19 Lakh, and for society flat it is Rs. 12 lakh to Rs. 25 lakh. The rental rates are between Rs. 6000 to Rs. 8000 per month for 2 BHK flats and Rs. 7000 to 12000 per month for 3 BHK flats. The rental rates for DDA flats are Rs. 4000 to Rs. 7000, per month. In Phase II, most flats are DDA flats of 1, 2 or 3 bedrooms. Phase III, which is well known as 'Kondli Gharoli', has DDA flats.

The extension of urban limits in Delhi has increased the pressure on land and greenery of Delhi is vanishing fast. DDA has contributed to develop the greenery. As a part of this initiative, Smriti Van in Kondli Gharoli has been developed.

The colony has several schools and colleges, such as ASN Senior Secondary, Ahlcon Public School, Don Bosco, Bal Bhawan Public School, Agarson College. A well-known market place in Phase I is Acharya Niketan Market. Most DDA shopping complexes are in Phases II and III. Mayur Vihar is also very well connected with Noida Sector 18, the commercial area. Banks like HSBC, ICICI, HDFC and ICICI bank have opened their branches/ATM centres in Mayur Vihar.

Restaurants and food junctions are plenty in this area. Nirula has started its 57th outlet in Mayur Vihar, at R.G. Complex.

Heavy traffic in the nearby highways and the proximity to Noida industrial estate contributes to the increase in the pollution of Mayur Vihar. The eight-lane expressway developed between Noida and Greater Noida has reduced the travel time between Delhi to Noida by 20 minutes. Residents of the Mayur Vihar have also benefited from this, as their travel time has come down by 15-20 minutes.

In future, when the proposed Metro line 3, linking Barakhamba Road to NOIDA (South-East Delhi) via Mayur Vihar is developed, it will also boost the real estate market of Mayur Vihar

Paschim Vihar is one of the older residential colonies of New Delhi, located in the west of the city. Till 1985, there was only one market in this area. DDA has been mainly responsible for the development of this area. In the early 1990s, a lot of development took place around Paschim Vihar in prime locations like Rohini, Pitampura, Punjabi Bagh and Janakpuri. This has escalated the prices of real estate here. It has grown since to 30 sub-colonies, each having its own shopping complex and infrastructure.

It is well connected with the rest of NCR, mainly because of the bus services. A large industrial area is about 3 kilometres away while Rohtak Road and Ring Road are close by. The colony today has several schools and hospitals as well as a well- equipped sports complex, with an Olympic size swimming pool. Jwala Hath Road has developed into a major shopping complex. All the major banks have their ATMs in Paschim Vihar.

Most of the residential housing here are for middle and high-income groups with the various group-housing societies, developed by DDA. Some of the prominent societies include SBI, RBI, SFS and MIG flats. According to prominent real estate consultant, Mr. Bertie Sawhney, the rental rates here vary between Rs. 3,500 to 12,000 pm for residential flats while capital rates vary from Rs. 1,200 to 1,800 per sq.ft. Commercial rates are as high as Rs. 10,000 per sq.ft. Prices have declined a bit since 2001.

Paschim Vihar has been the focus area around which other preferred colonies have grown over the years.

Patel Nagar is one of the famous residential colonies in West Delhi. It is divided into East Patel Nagar and West Patel Nagar. It is surrounded by commercial and shopping places such as Connaught Place, Pitampura and Karol Bagh. Those who migrated from Pakistan following the 1947 partition settled here. Over the years, Patel Nagar has grown rapidly and it is now a well-developed area

Patel Nagar has all the modern facilities such as hospitals, schools, colleges, public transport services etc. Some of the good schools in this area are Dayanand Model School, Dav Public School & Goswami Vidyapeeth. Patel Nagar has many hospitals. By November 2003, this locality would have new colony hospitals of varying treatment capacity. Capital values of residential properties at Patel Nagar are from Rs. 3500 – Rs. 5500. Rental Rates are from Rs. 18 -25 per month per sq. ft.

Food joints & restaurants are aplenty in Patel Nagar. The Avantika Inn at East Patel Nagar, Domino's in East Patel Nagar & Hotel Park Continental provide good quality food at reasonable rates.

Satyam Cineplex is coming up with a multiplex in Patel Nagar. The complex, spread over 40,000 sq. ft area, has 12,000 sq. ft space for retail shops. Various retail outlets like Pizza Hut and Café Coffee Day have already bought space here.

Capital values of commercial properties here range from Rs. 4500 to Rs. 7200 per sq.ft.

Patparganj is a well established industrial location in East Delhi,which is now developing as a commercial area and residential area. Most of the apartments here are occupied by the service class people. People who work in Nehru Place and Connaught Place prefer to live in Patparganj. Delhi Development Authority (DDA) has developed most of Group Housing Societies (GHS) here. There are more than 100 housing societies and 90 percent are occupied. Overall, living in Patparganj is affordable and communication very easy. It is well connected with CP, Nehru Place, ISBT, old and new railway stations. All these areas are 10-15 minutes from Patparganj. According to Naren Kumar, a real estate consultant, this is the USP of Patparganj.

The capital value for 1 BHK flat is Patparganj is between Rs. 9.5 – 11 lakh. A 2 BHK and 3 BHK flat are in the range of Rs. 12.5 lakh to 20 lakh and Rs. 17 to 35 lakh. The rental rates in these area is between Rs. 5000 to 7500 for 2 BHK and Rs. 6500 – 11000 for 3 BHK. A plot of 350 sq.meter to 460 sq.meter is available for Rs. 50 – 70 lakh. LG open a 4000 sq.ft shop in Patparganj. It is one of the biggest LG shop in Delhi. The Pearson Education (Singapore) Ltd., AVB School, National Victor Public School, Saint Andrews Scotts (Senior Secondary School), Plato Public School , Mayo International School, are some of the reputed educational institutes in this area.

Inland Container Depot (ICD), Patparganj started its operations in 1984 as a Container Freight Station with Central Warehousing Corporation (CWC). In April 1995, this station was upgraded to the status of full fledge ICD. Patparganj Industrial Area is used by the entrepreneurs nowadays for industrial as well as commercial use. Madhur Vihar is a fast developing commercial market in Patparganj. From cyber cafe to electronic goods, agricultural and farm development consultancy, export and import consultancy and metal industries are located here.

Pitampura has grown over the years from a non-descript area in north-west Delhi to a potential commercial and retail centre. Pitampura is enclosed between the Outer and Inner Ring Roads, and NH1 and Rohtak Road. The construction of the Delhi Development Authority (DDA) District Centre commercial complex next to Pitampura TV tower has pushed up the real estate markets in the area. Being built along the lines of Nehru Place and Rajendra Place, this DDA complex, known as Netaji Subhash Place, was planned in 1995, with 20 out of 38 plots already sold. DDA is in the process of auctioning off the remaining 18 plots. But the high reserve price has been a deterrent factor and moreover, the real estate slump has not helped either. Unity Buildwell Ltd. is developing this complex on 75 acres, with DDA approving plans for twin towers of 6 and 11 storeys. The complex will have the ground and first floors for shopping outlets and the remaining floors for offices. The complex houses PP Towers, Big Jo’s Towers, GDITL Towers and other private developers like Agarwal, Venus and Vikas Towers. The 77.5 acres complex has 7.75 acres of green area planned and is expected to serve a population of over 4+ lakhs. This complex will become fully functional in another two years. Plans include amusical fountain, mini-stadium and a community hall also.

The retail sector is the prime focus of all the major developers in this area and all major brands and banks are concentrating on expanding their retail networks. The shortage of quality space has been fueling prices northwards in north-west Delhi, and many developments are on the anvil in this area. The catchment area for Pitampura includes Rohini, Ashok Nagar, Saraswati Vihar and Shalimar Bagh among other areas. The new Rohtak Road passes just south of Pitampura, giving easy access to the highway. Banks already present here are IDBI, ICICI, HDFC, ABN Amro, SBI, Oriental Bank etc. Food chains present include Nirula’s, Wimpy’s and Mamma Mia, along with a multitude of restaurants. Osia Italia (men’s fashion) and Action Shoes have their showrooms here. The AEZ Mall in Pitampura is the latest in “World Class Entertainment Centres”.

DDA has taken care of all the infrastructure issues, but a lower reserve price will ensure that the remaining plots are auctioned off. Also private developers need to be encouraged provided the development plans are properly adhered to. Pitampura retail is definitely looking upbeat due to its strategic location and proper planning, but needs an impetus to get it off the ground.

Property Rates:
Commercial
Sale: Rs. 1,500 to 6,000 per sq.ft.
Rental: Rs. 25 to Rs. 65 per sq. ft. per month
Retail: Rs. 10,000 to Rs. 12,000 per sq. ft

Residential
Sale: Rs. 1,500 to 4, 500 per sq.ft.
Rental: Rs. 10 to Rs. 50 per sq. ft. per month

In West Delhi lies the versatile market of Rajouri Gardens (Pin 110027), with both up-market and middle-market commercial properties. The history of the main market at Rajouri Gardens goes back to the early 1960s. It has gradually grown into one of the important markets in the National Capital Region (NCR). It consists of over a thousand shopping establishments catering to all sections of people and attracts customers from all over the Delhi NCR area.

This main market area has been growing steadily, though space availability is very tight due to a dearth of approved commercial areas in this location. In West Delhi, the main market area in Rajouri Gardens is the only approved commercial area. A recent Public Interest Litigation (PIL) by the residents of Rajouri Gardens, against illegal constructions has dampened the commercial market in this area. Hence, the Municipal Corporation of Delhi (MCD) has taken severe actions against illegal construction in this area. Most of the development that has taken place in this area, since the 1960s, has been unplanned and this has caused major problems. And rates have fallen due to the PIL, by 25% for commercial properties and 15 to 20% for residential from its peak.

Factors contributing to Rajouri Garden’s growth:

Commercial Real Estate Rates

Sale: Rs. 2,300 to Rs 5,500 per sq. ft. (in some areas it can go up to Rs. 25,000 per sq. ft)
Rent: Rs. 25 to Rs. 90 per sq. ft./ month. (Due to severe shortage, this can go up to Rs. 250 per sq. ft. / month)

Residential:

Sale: Rs. 2,000 to Rs. 5,000 per sq. ft.

Rajouri Gardens main market has a wide range of commercial and retail shops. It is considered one of the upcoming areas of Delhi. It caters to the middle class as well as the upwardly mobile clientele. Two major up-market retail showrooms in the area include Cantabil, a retail brand formal and leisurewear store, and Lifespring, a retail beauty store. There are restaurants, which cater all types of cuisine, furniture and furnishing stores and footwear showrooms of brand names like Bata, Action, Nike, Reebok, and Adidas.

The retail boom in Rajouri Gardens main market is here to stay. The prospects look good, but MCD must plan and approve the development in a phased manner. The potential for growth in the commercial sector is very positive, given the factors in its favour. The property indicators are already headed north in this sector.

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