Residential rentals in Delhi-NCR will have a minimal impact after government’s move to rebuild seven housing colonies in New Delhi including Sarojini Nagar, Netaji Nagar, Nauroji Nagar, Kasturba Nagar, Thyagraj Nagar, Srinivaspuri and Mohammadpur, feel experts.
To ease the problem of shortage of government accommodation in the national capital, the Union Cabinet on Tuesday decided to redevelop seven General Pool Residential Accommodation (GPRA) colonies through National Buildings Construction Corporation Limited (NBCC) and Central Public Works Department (CPWD).
The project would involve a total expenditure of Rs 32,835 crore. The move is expected to create around 12,000 new units.
Vivek Agarwal, Co-founder and Principal Partner, Squareyards doesn’t see any major impact on the housing prices in Delhi-NCR region and said, “the move won’t make a huge impact on the housing prices in the region as it is primarily meant for the government employee. Since the units are not up for sale, the impact is expected to be minimal in terms of price movement.”
Agarwal further added, “As 12,000 new units are about to enter Delhi over the course of 5 years. With new units coming into picture, most of the government employees which otherwise stay in private rented accommodation will move into these new units. It will definitely make a downward pressure on the rental demand thereby affecting rentals, he said.
Earlier on the day of announcement, JLL India’s CEO – Operations and International Director Santosh Kumar told feonline that the move is primarily to do with redeveloping government housing colonies so it will not affect the housing prices in Delhi-NCR but will have an impact on rental prices.