Vrindavan: Where Faith Drives Growth

suchandra · October 20, 2007

Hopefully in future people will also have faith in Krishna's words.

WHERE FAITH DRIVES GROWTH

Devesh Srivastava

http://www.expressestates.in/full_story.php?content_id=92328

Posted online: Friday, October 19, 2007 at 1201 hours IST

Updated: Friday, October 19, 2007 at 1208 hours IST

We look for peace in and around cities of religious importance. But as visitors throng in thousands to such places, these become chaotic. Poor infrastructure becomes poorer. Those who come on religious pilgrimage either stay here forever or look for a cheap accommodation for a temporary stay. The answer lies in providing more accommodation to the visitors. Vrindavan is a place, where such a transformation is taking place at a fast pace.

Around 15-20 private developers have already arrived here. Some important names include Amrapali, Pushpanjali, CHD, Triveni and Heritage JVM. Some local developers have also started their residential projects. These are Giriraj Apartments and Govardhan.

According to one local real estate consultant, Omaxe has also acquired land for developing a residential township. The Mathura-Vrindavan Development Authority has already allotted some 500 acres of land to the Suncity Group.

Reaching there

One can reach Vrindavan by taking the National Highway-2. To reach the highway one has to reach the Badarpur border and take the Delhi-Agra expressway. This leads to the national highway. Vrindavan is 140 km from Delhi.

Growing market

The market of Vrindavan is stable and holds good potential. Satish Arora, chairman, Heritage JVM Group says, “We did a survey in Delhi. Around 900-1,200 vehicles cross everyday from the toll bridge. The number usually increases on weekends. The famous ‘Parikrama’ attracts thousands of devotees every Sunday. So, tourists from Delhi look for good accommodation. There is limited quality accommodation available. So investing in a good property becomes a necessity for some.” The Heritage JVM Group is constructing farm houses. Industry players think that the market will witness an appreciation.

But is the Vrindavan market oversupplied? Gaurav Mittal, director, CHD Developers, who is developing residential projects comprising of two- to three-bedroom apartments answers: “There is less supply in the market.” He further adds that an appreciation of more than 20 per cent is expected in residential prices.

Anil Sharma, CMD, Amrapali Group, which is building a township, and a mall explains, “There was a visible correction in the prices. But this does not affect the prices in Vrindavan. Price correction and slowdown was evident in tier I cities like Delhi/NCR. The slowdown had little impact on tier II cities. In tier III cities like Vrindavan, the prices are increasing slowly. There is either no correction or the impact is least.” Others like Sharma expect an appreciation of up to 30 per cent.

But Mittal of CHD Developers points out, that such kind of appreciation will be seen in apartment prices only. He is of a view that Vrindavan is not a market where large-scale plotted development would be a success.

Plots: These come for Rs 80 lakh per acre on the highway. And if one moves towards the interior, the price ranges between Rs 25-30 lakh per acre. There are some developers like Heritage JVM Group, which are selling at a rate of Rs 3,300 per sq yd.

Some prime residential colonies at Vrindavan are: Chaitanya Vihar Phase I and II and Kailash Nagar.

Land rate at Chaitanya Vihar Phase I is around Rs 12,000-15,000 per sq yd. While the rate of land at Phase II ranges between Rs 5,000-10,000 per sq yd.

At Old Vrindavan, from Iskcon to Banke Bihari Temple, the rate of land is Rs 25,000-30,000 per sq yd. If one goes in the interiors, he can get land at a rate of Rs 10,000 per sq yd.

Flats: The rate of flats ranges from Rs 1,200-1,500 per sq ft. At present there is good demand of flats and independent villas. In a couple years from now, around 2,000-2,500 flats would be ready.

According to a survey done in March, 2007, the population of Vrindavan is around 57,000. This will surely increase. So will the need for accommodation. Arora of Giriraj Apartments informs about another trend, “Many foreigners also want to settle here.”

But they need to get the citizenship of the country for a longer stay. So they usually marry an Indian.

mercial:Commercials rates at Vrindavan range between Rs 4,000 and 5,000 per sq ft. A 10 ft x 18 ft commercial space comes for Rs 12-14 lakh.

Rentals: There is a growing demand for rented accommodation. Pilgrims who come to Vrindavan and students who come for their studies here are the ones needing temporary accommodation. A huge segment of the rental market is taken up by NRIs and foreigners. Commercial rentals too will rise.

Infrastructure

Vrindavan, a religious city which is thronged by lakhs of devotees every year, has poor civic infrastructure. However, the Mathura-Vrindavan Development Authority is taking steps to give this international tourist destination a facelift. The work for six-laning of the national highway has already been sanctioned.

The authority has allotted land to private developers to construct residential projects. But Sharma of Amrapali Group points out an anomaly in the master plan for Mathura-Vrindavan. He says, “Under the master plan the residential land is limited. So there is little scope for development in residential segment.” At present the zonal planning is effective.

It would take at least a year to get the master plan implemented.

Nearby Mathura, which is just 25 km from Vrindavan, has good number of schools and professional colleges. Amrapali Group is coming up with a hotel in collaboration with the Clarks Group. This will be ready in the next two years.

Outlook

Developers say that there are many investors from West Bengal, Mumbai, Uttar Pradesh and Delhi. There are more takers for independent houses and villas than for plots and flats.

Every year the number of tourists increases. Some of them stay back and some leave. What remains is a town, which is looking for growth and facilities like hospitals, polyclinics, schools and colleges. Developers too are attracting buyers by giving amenities like mall, schools and temples in their vicinity. But a peculiar trend is setting in — Vrindavan is becoming a place for senior citizens and retired people. For a good mix of populace this trend has to stop.

Anil Sharma, CMD, Amrapali Group

‘No slowdown here’

Expect appreciation

I expect an appreciation of up to 30 per cent in a year from now. Future is bright. It is already a tourist destination. Infrastructure would improve in the near future.

Rentals

Residential rentals would go up, as these would be cheaper than hotels. Usually tourists coming to Vrindavan look for economical accommodation for a short stay.

No impact of slowdown

The slowdown has not affected the Vrindavan market, as it is a tier III category town.

Sandeep Arora, Director, Giriraj Apartments

‘Sanctuary for senior citizens’

Peculiar trend

Vrindavan is becoming a sanctuary for senior citizens. Foreigners who want to settle here marry an Indian, but only on papers.

Prime areas

Land rate at Chaitanya Vihar Phase I is Rs 12,000-15,000 per sq yd. While the rate for land at Phase II ranges between Rs 5,000-10,000 per sq yd. Flats come at a rate of Rs 1,500 per sq ft.

HIghways not preferred

Highway projects are not successful, as people who buy (usually senior citizens) prefer to live near the temples.

Satish Arora, Chairman, Heritage JVM Group

‘Waiting for master plan’

Farm houses

Demand for farm houses and independent villas is more compared to flats and plots.

Story in numbers

Around 900 to 1,200 vehicles cross the toll bridge daily to enter Vrindavan. The number increases on weekends due to the famous ‘Parikrama’. And these tourists from Delhi look for good accommodation.

Master plan

It will take at least one year for the Mathura-Vrindavan master plan to get implemented. Currently, zonal planning is effective.