DLF's success in small towns: Plotted developments drive demand

03 Oct 2023 CW Team

Other prominent developers like Godrej, Eldeco, Trident Realty, Mapsko, M3M, and Alpha have also initiated projects in towns such as Alwar, Sonepat, Panipat, and Meerut, indicating a trend towards smaller town developments.

In response to the delay of large-scale projects in this financial year, DLF has shifted its focus to plotted and low-rise developments to generate revenue. Market sources reveal that there is substantial demand for plotted projects within 2-3 hours' driving distance from Delhi, leading to the success of projects like the one in Panipat.

DLF has capitalised on opportunities, such as monetising old land in Panipat, selling the project at a premium of 15-25% compared to its competitors. Since October 2020, DLF has sold low-rise apartments worth Rs 76.50 billion in the NCR and Panchkula. The company plans to launch projects worth Rs 200 billion in the current fiscal year, including significant projects in Gurgaon and Mumbai.

Moreover, the development of new rapid train corridors and tolled peripheral expressways connecting small towns like Meerut, Karnal, Alwar, Palwal, Bahadurgarh, and Sonepat to Delhi has significantly reduced commute times. This, coupled with the rise in corporate presence and organised-sector working population in Delhi, has led to increased traction for both residential and commercial properties in the outlying areas of the NCR.

The trend towards hybrid work cultures has encouraged people to move back to their hometowns, driving residential property demand in areas within 2-3 hours by car from their main city base. Shorter travel times allow property owners to utilise their second homes more frequently, leading to year-round occupancies and boosting the economy of these semi-agrarian settlements north of Delhi.

Furthermore, proposed infrastructural developments, such as the extension of the rapid rail line between Delhi and Panipat to Karnal, promise to enhance property development in these once-overlooked regions. These advancements not only facilitate easier movement within the NCR's outskirts but also create new opportunities for economic development and investment.

DLF, the leading real estate developer in the National Capital Region, has expanded its presence into tier 3 markets with a successful 10-acre plotted development project in Panipat, Haryana. Remarkably, the project sold out within an hour of its launch, generating Rs 2 billion in revenue and highlighting the growing demand for quality residences in smaller towns. Other prominent developers like Godrej, Eldeco, Trident Realty, Mapsko, M3M, and Alpha have also initiated projects in towns such as Alwar, Sonepat, Panipat, and Meerut, indicating a trend towards smaller town developments. In response to the delay of large-scale projects in this financial year, DLF has shifted its focus to plotted and low-rise developments to generate revenue. Market sources reveal that there is substantial demand for plotted projects within 2-3 hours' driving distance from Delhi, leading to the success of projects like the one in Panipat. DLF has capitalised on opportunities, such as monetising old land in Panipat, selling the project at a premium of 15-25% compared to its competitors. Since October 2020, DLF has sold low-rise apartments worth Rs 76.50 billion in the NCR and Panchkula. The company plans to launch projects worth Rs 200 billion in the current fiscal year, including significant projects in Gurgaon and Mumbai. Moreover, the development of new rapid train corridors and tolled peripheral expressways connecting small towns like Meerut, Karnal, Alwar, Palwal, Bahadurgarh, and Sonepat to Delhi has significantly reduced commute times. This, coupled with the rise in corporate presence and organised-sector working population in Delhi, has led to increased traction for both residential and commercial properties in the outlying areas of the NCR. The trend towards hybrid work cultures has encouraged people to move back to their hometowns, driving residential property demand in areas within 2-3 hours by car from their main city base. Shorter travel times allow property owners to utilise their second homes more frequently, leading to year-round occupancies and boosting the economy of these semi-agrarian settlements north of Delhi. Furthermore, proposed infrastructural developments, such as the extension of the rapid rail line between Delhi and Panipat to Karnal, promise to enhance property development in these once-overlooked regions. These advancements not only facilitate easier movement within the NCR's outskirts but also create new opportunities for economic development and investment.