Jasola

Location: South Delhi
A few years ago the Jasola District Centre was better known as Jasola gaon, an obscure village in the Capital. Located behind Apollo Hospital, near Sarita Vihar, the last few months have changed its status, putting Jasola on the road to becoming the next big commercial hub of Delhi. Developers and DDA officials explain that Jasola, being the last place in South Delhi where land is still available, has become a sought-after address for real estate developers in the city. It is only a matter of time, they say, before Jasola also turns into another premium housing colony of the Capital. Situated over 60 acres of land, shall comprise 6 lakh sq ft of retail space, with another 30 lakh sq ft available for corporate development. Leading developers like DLF, TDI and Omaxe have bought land here. The DLF group has purchased two plots of land for Rs 170 crore where more than 9 lakh sq ft of commercial space is expected to come up. Similarly, TDI shall develop the TDI Centre, which will house premium and international retail brands, multi-cuisine food courts, and top quality corporate space. Also, the IT and ITES sectors shall receive special attention, with commercial space catering to specific needs of that sector being constructed.

Jasola is also well connected to commercial areas such as Nehru Place, Okhla Industrial area, Noida and Faridabad and residential areas such as New Friends Colony and Sarita Vihar. This easy access is fast making Jasola a major residential and commercial/retail property magnet. Despite lagging infrastructure, a recent Delhi Development Authority (DDA) auction of 24 residential plots at Jasola raised DDA Rs. 83.26 crores, nearly Rs. 50 crore more than the reserve price. One 270 square metre plot in Jasola sold for Rs. 4.80 crore, with the Jasola auction realising the highest appreciation of around 200% over reserve price. Developers are fast moving in with real estate developers such as DLF, Omaxe and Taneja Developers planning commercial complexes. DDA plans to put another fifty plus residential plots on auction by end of the year and perhaps two remaining commercial plots. While land prices have appreciated 100% in less than two years, real estate sources see further price escalation as a lot of demand is chasing the available land.

If you are an NCR-based investor looking to invest in the property market, at present you might be better off investing in commercial property rather than residential. While the rental return from residential property is about 4-5 %, for commercial property it has risen as high as 8%. The boom in the property market over the last few years has resulted in a lot of supply coming into the residential market, especially in the suburbs.

By contrast, in the commercial space demand exceeds supply. Within Delhi most land banks are in the hands of DDA and NDMC, and auctions are held infrequently. Since supply of land is limited, so is the supply of commercial office space. Jasola and Saket are two sites where land has been auctioned in recent years.

Aniket Shah, corporate spokesperson for MGF, said, Jasola is one of the most important upcoming business districts. It is the only area near the city where development is still possible. Other areas, which are being developed now, like Narela, are far away from the heart of Delhi’s business district. For commercial visitors, who make the bulk of five-star hotel visitors, this access is very important. The DDA has also auctioned land for 11 retail-cum-commercial complexes in the area in the past two years. Jasola based property agent S Sachdeva, who has been dealing in the area for the last 10 years, said, The area has been witnessing a boom for quite some time now but it is basically since last year that prices of real estate have gone up significantly. According to him, prices have almost doubled since 2005. From Rs 70,000 per square yard last year, prices have leaped to Rs 1.3 lakh. Commercial plots, which were sold on a freehold basis, have also seen a huge appreciation in the property values. Realtors predict shortage will further push up the prices. Infrastructure buildup is lagging in Jasola with power, water, and public transportation facilities less than what is to be desired. This is not however deterring investors who expect these issues to sort themselves out in a few years time.

Real Estate Faridabad