The National Capital Region (NCR) of Delhi did a rapid development within a short period of time,ranging from corporations, both domestic and international, buying plots of land setting up their sprawling offices or up-market high street retail outlets to fancy entertainment malls or a chain of production and/or manufacturing plants. A sudden boom in real estate prices, more precisely commercial properties, has caused such development and therefore, attracted high investments in this sector with net returns at approximately more than 10 per cent in 2004, far more than government securities or bank fixed deposits, averaging a mere 6 per cent in the preceding year.
Suburban areas of Delhi such as Gurgaon and Noida are a target too and preferred destinations for new commercial projects in light of the fact that there is easy availability of land and customer preferences. Gurgaon is poised to become an upcoming major commercial destination of the country with about 70 percent of the new commercial space in NCR being located there. The DLF Group, for example, plans to invest Rs 300 crore in the next couple of years in commercial projects, encompassing western facilities. Rampant unauthorized construction in the NCR is a major factor which influences the future safety of property. Buyers need to do a risk evaluation based on complete knowledge of the deviation from bye laws in the structure which are capable of being demolished by the Municipal Corporation.
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