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Good connectivity driving prices

Last updated: February 4 2012
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  • Good connectivity driving prices

    Major connectivity projects like the Metro link to Delhi, the Dwarka Expressway and the Kundli-Manesar-Palwal (KMP) Expressway, have opened up new growth areas in Gurgaon and pushed prices of residential real estate by 30-60%. PRABHAKAR SINHA writes


    Gurgaon is the hottest real estate destination in the National Capital Region of Delhi. In the last one year, while the global economies, including that of India, have been in the grip of a slowdown, the prices of residential real estate have gone up by 30% to 60% here.


    With the proposed construction of around 15km-long Dwarka-Gurgaon Expressway and the development of infrastructure along the Golf Course Extension Road and Sohna Road, the township has been swamped by a flurry of construction activities. In fact, these areas provide good opportunities to buy houses as the prices are still not very high in comparison to the prevailing prices in the nearby areas.


    Gurgaon ranks third among India cities on the basis of per capita income, after Chandigarh and Mumbai. According to DTZ, it is home to 300 out of the Fortune 500 companies. Consequently, it has thousands of white-collared workers working here with high salaries and, of course, high disposable incomes. These white-collared workers have created a huge demand for residential apartments and independent villas here.


    Pankaj Bajaj, the president of CREDAI NCR, said Gurgaon has attained critical mass in terms of corporate offices, malls, night life, and social infrastructure like schools and hospitals. All this is adding to its attractiveness as a residential area.


    Bajaj said prices are still affordable, compared to Delhi, where only the highest income class can afford to buy a house today. A high proportion of sales are also due to the upper middleclass investors, who are looking to invest in Gurgaon’s real estate as a safe and attractive option. According to the DTZ report, Gurgaon will have a total supply of only 14,000 units of residential apartments in 2012, which is grossly inadequate, in light of the demand that it is witnessing.


    As a result, the township saw a huge appreciation in the last three years, during which time prices more than doubled. This has made the region a hotspot for investors. At the same time, real estate continued to be the safest investment option among equity, real estate and gold in the country. In the medium-term horizon, despite the economic slowdown, it has been seen in the past that the investments in real estate have given better returns.


    In the NCR, Gurgaon commands the highest price after Delhi. DTZ said its proximity to the airport apparently gives it the edge over other areas, like Noida. Gurgaon has scored over the other areas in the availability of world-class office space. The suburb has also benefited through National Highway 8 (NH-8), which has spawned many highrises along it, with a lion’s share being taken by A Grade commercial office space.


    The recent inauguration of the Metro line has connected Gurgaon to the National Capital, which has proven to be a boon for real estate around this track. Phase III of the Metro promises to further connect the far-flung areas of Golf Course Extension Road with the rest of the city of Gurgaon and, of course, Delhi.


    This will further extend the city and will make available more land for construction activities.


    The proposed Dwarka Expressway, or the Northern Peripheral Road, is already creating business opportunity for real estate developers along this road and many projects have been launched to take advantage of the road that will connect Gurgaon with Dwarka in Delhi.


    However, to begin with, the area was first proposed as a hub for affordable houses. But as the demand grew, developers shifted to the construction of premium houses in the area. At present, almost all the big-ticket builders have launched projects on the Dwarka Expressway.


    The upgradation of the road that connects Gurgaon to Faridabad will be another corridor of real estate development. Largely, it is the potential of Gurgaon as a world-class city, along with genuine infrastructure development by the local government, which has spurred the real estate prices.


    Several infrastructural initiatives like the Metro line to Delhi, development of major expressways like the Dwarka Expressway and the KMP Expressway have opened up new growth areas in the city and hence boosting the demand for housing in the city, says David Walker, the executive director of SARE Homes.


    Efforts by local authorities of Gurgaon to develop a network of internal sector roads and the southern periphery road have also improved the connectivity to these growth areas. These growth areas have seen appreciation because of the infrastructural initiatives and the intrinsic demand for housing in the city, Walker says.


    The sub-Rs 4,000 per sq ft apartments in Gurgaon constituted nearly 50% of the total sales last year. This clearly shows the demand for mid-income category. With softening of interest rates and major infrastructural initiatives fructifying in the near future, the demand for this category is likely to receive further boost, Walker says.


    As far as price sustainability is concerned, some areas that have seen very high appreciation last year may see the demand plateau out on account of resistance to any further price increase. Be that as it may, there are still several growth areas in Gurgaon, which are yet to see full unlocking of their value.


    It is expected that the KMP Expressway will be operational in early 2013; this, along with the Dwarka Expressway, will decongest the NH-8 and are expected to provide a boost to sectors along these two expressways, Walker says.

    -TOI
  • #2

    #2

    Re : Good connectivity driving prices

    GURGAON PLANS BIG FOR 2025


    The new Gurgaon-Manesar Master Plan 2025 is fuelling a boom in realty. It has brought in fresh areas under development and given a new lease of life to the city. A K TIWARY writes


    Cyber city Gurgaon was developed as one of the prime locations for real estate and industrial activity in the NCR. While the residential and the commercial development are there for all to see, the industrial development is not far too behind.


    In the last ten years, the Cyber city has had a number of MNCs, real estate companies and factories opening their offices here. This has led to a rapid growth in real estate in the city.


    And today, it has emerged as a major residential, commercial and retail hub.


    New developmental plan


    To revise the Master Plan, 2021 of Gurgaon (which was released in 2007), and extend the target year from 2021 to 2025, a new developmental plan, Gurgaon-Manesar Urban Complex 2025, has been formulated taking into consideration the proposed growth of the city up to 2025.


    According to the new guidelines, the population density has been calculated at 120 people per acre, compared to the earlier population density of 100 people per acre. The new draft plan is being formulated for new sectors, Sectors 58 to 115, so that new provisions can be made accordingly, as the sectors are still in the planning process.


    Traffic-free Gurgaon


    To free Gurgaon from a rapidly expanding traffic, there is a plan to double the width of sector roads from the existing 30 metres to 60 metres, under the new Gurgaon-Manesar Urban Complex 2025 plan. Special attention has been given to security, health and education while preparing the layout plan of the new sectors. According to the new plan, Sectors 58 to 67 will be developed in the first phase. These sectors will have 60m-wide roads. All roads in the planned sectors will be interconnected, unlike the existing sector roads that end abruptly.


    Praveen Kumar, the administrator of HUDA, says: "Under the revised plan, the district town planner has been asked to ensure sufficient parking space for vehicles in the new sectors. Directions have also been issued to give special attention to security, health and education while preparing the layout plan of the new sectors. The Badshahpur Nallah, used for carrying excess water, will also be realigned along the 90m-wide southern peripheral road, under this new master plan."


    "For interconnectivity, six controlled areas have to be added under the new master plan. With a view to avoiding encroachments beyond the connecting road, the HUDA (Haryana Urban Development Authority) has decided to develop a 50m-wide green belt along the road and earmark a 200m-wide strip as an institutional belt," Praveen Kumar said.


    BRT in Gurgaon


    Like in New Delhi, Gurgaon will also have a Bus Rapid Transit (BRT) corridor to decongest traffic on the Northern Peripheral Road. In several sections, the NPR will have provisions for a BRT corridor to ensure smooth flow of traffic. The road is likely to be developed by March 2012.


    Real estate scene


    Gurgaon has benefited hugely from its proximity to the Indira Gandhi International and the domestic airport. This has led to a rapid growth in real estate in the city. Improving infrastructure and commissioning of world-class projects like DMIC (Delhi-Mumbai Industrial Corridor) have further fuelled developments in Gurgaon. Major connectivity projects like the forthcoming Dwarka-Gurgaon Expressway, the Western and Eastern Peripheral Expressway, the Metro link (operational up to HUDA City Centre) have further strengthened Gurgaon's position in the NCR.


    Bhim Yadav, the managing director of Falcon Group, says: "Gurgaon is all set to add a fresh residential supply of 97.60 million sq ft during 2009-2012, 80% of which has already been sold. The drop in prices during recession has lured developers to launches residential projects in the affordable price bracket. The commercial office market has seen corrections in terms of capital values and lease rentals."


    A report says Gurgaon is one of the fastest developing cities in the NCR, with a supply of 7.3 million sq ft in three years, 63% of which has already been absorbed. The gap between demand and supply is still widening. The earlier expansion plans of retailers have been revised. With high vacancy levels, developers are evaluating revenue-sharing models to attract retailers. But, with the correction in prices, construction activities are picking up.


    Amarjit Singh Bakshi, the managing director of Central Park, says: "The new Gurgaon-Manesar Master Plan, in fact, is fuelling a boom in development. It has brought in fresh areas under development and given a new lease of life to the city. Gurgaon is now growing along the southern peripheral area where Sohna Road and Golf Course Road extension are the major growth corridors."


    Developing sectors


    The Gurgaon-Manesar Master Plan 2025 has pushed up the availability of land for development and avenues for new growth corridors. Sectors 8, 11, 12, 12A and Palam Vihar comprise the old section of Gurgaon. Sectors 4, 5, 14, 15, 29, 56 and 57 are amongst the most developed HUDA sectors in Gurgaon. Areas like DLF Phase IV, Sushant Lok I-III and Golf Course Road are the prime residential areas commanding the highest real estate prices.


    A city-level housing supply


    By 2011, Gurgaon has had a city-level supply of 107.56 million sq ft of residential real estate, including a completed stock of 9.95 million sq ft, all of which is spread across 111 projects comprising apartments and villas. According to the new master plan, 14,930 hectare of land has been allotted for residential use with the addition of over 58 new sectors.


    A majority of the new developments take place in these sectors. Records show 35% of the proposed residential land is under the process of licensing. The new major growth corridors in Gurgaon include extended Golf Course Road, Sohna Road, Pataudi Road, Jaipur Highway and a concentrated growth in Dharuhera and Manesar.


    QUICK BITES


    TO FREE GURGAON FROM A RAPIDLY EXPANDING TRAFFIC, THERE IS A PLAN TO DOUBLE THE WIDTH OF SECTOR ROADS FROM THE EXISTING 30 METRES TO 60 METRES, UNDER THE NEW GURGAONMANESAR URBAN COMPLEX 2025 PLAN


    THE NEW MAJOR GROWTH CORRIDORS IN GURGAON INCLUDE EXTENDED GOLF COURSE ROAD, SOHNA ROAD, PATAUDI ROAD, JAIPUR HIGHWAY AND A CONCENTRATED GROWTH IN DHARUHERA AND MANESAR

    -TOI

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    • #3

      #3

      Re : Good connectivity driving prices

      GURGAON, A MAGNET FOR DEVELOPERS


      Planned development and favourable tax policies of the government have made Gurgaon a haven for developers, says PUNITA


      A report says that about 200 million sq ft of space is required for various real estate development projects in the NCR. And, within the NCR, Gurgaon leads all the other cities in the demand for space for residential, office, retail, and hospitality sectors.


      Why Gurgaon?


      Gurgaon is close to the Indira Gandhi International Airport and boasts of good connectivity to all the other cities in the NCR, as well as to cities in Rajasthan, Haryana and Punjab.


      This has given a fillip to the development of Gurgaon as the most prominent outsourcing and off-shoring hubs in the country. In fact, leading auto companies like Maruti Suzuki and Hero Honda set up their manufacturing base in the city only because of the high potential and ample land space to accommodate their huge plants.


      "The area along the NPR (National Peripheral Region) holds a great potential in terms of investment due to its proximity to the airport and Delhi, and of course, its excellent connectivity.


      The place will also get posher once the proposed second diplomatic enclave comes up in Dwarka's Phase 2, bordering Gurgaon, as it will become a hub of all the major embassies. Thus, investing in this region makes a lot of sense," says Navin M Raheja, the chairman and managing director of Raheja Developers Ltd.


      Gurgaon has caught the fancy of most of the developers. The multi-directional developments in terms of infrastructural and commercial activities have promoted the residential segment, which ranges from affordable to highend units, lowrise to highrise houses, tall condominiums to huge penthouses and villas. The BPO and IT revolution in the area has supported high purchasing power.


      Some of the sectors like Sectors 80, 81, 82, 85, 86, 90, 9, 92, 93 and 95 are seeing a tremendous response. Proximity of these areas to the Dwarka-Gurgaon Link Expressway, which will help the residents here bypass the traffic at Gurgaon toll bridge near Delhi during peak hours, is an added incentive. Sector 84, one of the new sectors around NH-8 and a part of the Gurgaon Master Plan 2021, has among the widest roads in the region.


      Orris Infrastructure has more than 1,200 acres as land bank, which has helped in its successful launch of premium commercial and residential spaces. Orris's land bank is located in Sectors 82A, 83, 85, 88, 89, 90 & 93.


      Innovative Developers has Legend Heights, a commercial project with three lakh square feet of prime commercial space in twin towers. It is strategically located in Sector 80 on the intersection of a 270-metre- wide new proposed 12-lane expressway, the NH-8, and a new proposed 84-metre-wide sector road. This is a mixed-use development which will include Grade A office space, an international upscale 140-room Hyatt hotel, and house world-class retail facilities.


      Sumit Khanna, the managing director of Unimexx Builders and Developers, says: "Gurgaon has become a preferred city for thousands of professionals who are buying apartments and going in for other housing options here. Realizing the potential demand from NRIs and well-heeled customers, who consider it worth spending on luxury and high-end facilities, premium residential projects have also sprouted in the city."


      Dr S P Yadav, a famous urologist who runs Pushpanjali Hospital in Sector 15, says: "Gurgaon has gained a prime position in the development of Haryana, in the last two decades. The planned development and favourable tax polices followed by the state government created this success story. The diligent efforts by HUDA have put Gurgaon high on infrastructure, which has in turn acted as a magnet for developers."


      QUICK BITES


      GURGAON IS CLOSE TO THE INDIRA GANDHI INTERNATIONAL AIRPORT AND BOASTS OF GOOD CONNECTIVITY TO ALL THE OTHER CITIES IN THE NCR, AS WELL AS TO CITIES IN RAJASTHAN, HARYANA AND PUNJAB


      SOME OF THE SECTORS LIKE SECTORS 80, 81, 82, 85, 86, 90, 9, 92, 93 AND 95 ARE SEEING A TREMENDOUS RESPONSE, AS PROXIMITY OF THESE AREAS TO THE DWARKA-GURGAON LINK EXPRESSWAY HAS BEEN A GREAT USP FOR THEM

      -TOI

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