Commercial properties in areas such as Paharganj, Jhandewalan, Motia Bagh and Daryaganj have witnessed stable values owing to numerous factors. Realtors believe that these are traditional areas and have old and dilapidated commercial buildings.
Secondly, since they are located in Central Business District (CBD) areas, roadblocks like traffic jams, uneven roads and poor connectivity are deterrents to growth here. That’s why these areas are seeing stable value trends with no major escalation or increase in the number of transactions, realtors said.
Praveen Sethi of City Properties said that capital and rental values in these areas are showing a stable trend. Another city-based realtor, Gaurav Bhatia from Properties & Properties said, “There are more queries than actual number of transactions. Availability of better commercial office space options in National Capital Region (NCR) such as Noida and Gurgaon is diverting buyer’s mindset.”
Balbir Singh, Chairman of Vardhaman Plaza reiterated that, “Once the problems like connectivity and traffic jams are addressed, the commercial values will take an upward trend.” However, there are some renovation projects also going on and old buildings are getting designed as per new standards to meet the demand but this will take some time.
To address these issues, there is a proposed plan of monorail in these areas within next 2-3 years. The plan is already approved and the basic work has also started, Singh said. This will speed up the travelling time to these areas and also resolve traffic issues.
Enhanced connectivity will definitely uplift these areas and improve the demand and number of transactions. Further renovated buildings with proper parking space, good infrastructure, security and other facilities will push the commercial property market, Sethi added.
The current capital values of commercial shop and office space at Pahar Ganj, Jhandewalan and Motia Khan is in the range of 9,000-30,000 per sq ft. With the proposed monorail plan combined with infrastructure facilities is likely to bring back buyers to CBD areas.