Dipping Rates

A once upcoming industrial hub,Manesar is another victim of the slowdown in the real estate market. Squeezed expansion plans of companies....

Written by Poorna Bhattacharjee | Published: February 28, 2009 2:10 am

A once upcoming industrial hub,Manesar is another victim of the slowdown in the real estate market. Squeezed expansion plans of companies and lower return on investments has forced a lot of projects to be put on hold.

“Even a year back,the returns on investments in this area could go up to 14 per cent. Now,they are barely at 6 to 7 per cent with rental rates hitting an all-time low,” said Himanshu Sharma,a consultant with Tamanna Realtors. “Instead of expanding in a year’s time,companies are not expanding for at least another four years. As a result,the commercial office space has been hit,especially in outlying areas such as Manesar,” he added. Earlier,investors would fund builders to construct projects and then retrieve their money from sales to end-users. As the end-users have disappeared from the market,there is limited return on investment. Being at a distance of 32 kilometres from the Indira Gandhi International airport and 45 kilometres from Connaught Place in Delhi puts Manesar at a serious disadvantage for office-goers. “Prospective buyers can avail of properties in Gurgaon,Faridabad and Noida. Why should they pay high prices for being forced to venture out so far?” added Sharma.

All major developers have residential and commercial projects in Manesar,including DLF,Unitech and Vigneshwara. DLF Express Towers is located in Sector 79 of Gurgaon,and a few kilometres from Manesar. It consists of 3 and 4 BHK apartments,sizes varying from 1760 square feet to 2125 square feet. Prices range from Rs 45 lakh to Rs 68 lakh,depending upon in-built amenities. Prospective buyers can avail of town homes,with a private lawn well-sized terrace. The size ranges from 2960 square feet to 3070 square feet. Prices start from Rs 88 lakh and go up to Rs 1 crore.

Vigneshwara’s Technology Park,with nearly 10 lakh square feet of office,production,commercial and retail space,offers investors an assured rate of return of 12 per cent. The price is Rs 7,000 per square foot. The technology park is meant for IT / ITeS,Robotics,Nano Technology,Chip Manufacturing and Call Centres. Manesar is famous for its Industrial Model Township (IMT),a 1,750-acre Integrated Industrial Park that was initially planned as a joint venture of the Centre,Haryana government and a Japanese company. But it was finally taken over by the Haryana State Industrial Development Corporation in 1997 to be developed exclusively as an industrial area. IMT is located along the National Highway 8,linking Delhi and Jaipur and is at a distance of 17 kilometres from Gurgaon. Some of the industrial units functioning in Manesar are Honda Motorcycle & Scooters India,Hero Motors Ltd,NHK Napino Auto,Samsung Telecommunications,Denso Haryana and Maruti Suzuki Metal. “The market for office space has truly dried up. Therefore,what was once the forte of Manesar no longer remains so,” said Pradeep Mishra,consultant with Sainik Estates. However,the proposed,Rs 1,800-crore Kondli-Manesar-Palwal Express highway might boost the real estate development in Manesar,with its improved connectivity. l

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