In the property market around the NCR,it is a rarity for an area to have stable property prices,that too over the last three years with no speculators or major broking houses entering the fray. Raj Nagar Extension has been one such area.
This situation is,however,fast changing. Despite the problems faced in commuting, Raj Nagar Extension is being seen as a good investment opportunity. Buyers considering this locality see it as a good place to stay,and being close to the capital,believe that it will appreciate and provide good returns over the long term.
The locality is seen as being safe,from the point of transparency,by investors. Another factor fuelling speculator interest are the varied choices,based on ones preference and the projects are being developed by builders with good banners.
The most compelling reason for any property investor or buyer to choose this area as an investment opportunity has been its location. Raj Nagar Extension is located adjacent to Ghaziabad and is yet disconnected from all the pollution and chaos of the industrial town. It is situated close to the Hindon River Green Belt. The connectivity with the arterial NH-24 and the Grand Trunk Road is improving with the construction of new flyovers. In addition,the proposed extension of the Delhi Metro in the area promises better connectivity with Delhi and adjoining areas.
Another advantage of investing in Raj Nagar Extension is that there is no controversy surrounding the area like dumping grounds,villages etc. There is one small urban village nearby,called Sihani,which does not pose any problem.
The current prices in Raj Nagar Extension are in the range of Rs 2,300-2,900 per square feet. The place is the dream of an association of 15 builders,with an aim to provide the middle class with their own house and the pace of development and timely delivery has surprised many industry experts.
On the negative side,there is some unrest among the property owners in Raj Nagar Extension,as they see no major appreciation in property rates in the last three years. Also the commercial activities in this area are not growing as fast as in some other suburbs like Noida and Gurgaon,which is limiting the demand of houses in this area,as now people want to live as close to their potential working place. Due to growing congestion of the roads,the only break through for this area will come when it gets connected by metro.
However,the scenario is finally starting to change and people who are looking to buy early possession budget houses can easily close their transactions in the area,as there would be many projects offering possession soon with a benefit of low costs. Thus this should result in the rates firming up a little with more and more families shifting to this area.
I would say that the real estate market of Raj Nagar extension,though not very talked about,is definitely promising in years to come,and is good for those looking for low cost stable option for investing in real estate. The rates are not expected to fluctuate much and does offer a good potential for first time home buyers looking for their own abode.
To conclude,the verdict is,if you are still renting a place and work in this side of the city then you should definitely consider buying your own home to eventually get out of the rental trap and take advantage for the many tax benefits available to first-time home buyers.
Author is MD,Bajaj Capital