Enjoying locational advantage and its excellent connectivity with NH8, impetus it received from leading property developers and the authorities, Gurgaon-Sohna Road is emerging as a promising niche and premium real estate destination.

It was in late 2004 that Gurgaon Sohna (GS) Road started picking up steam on the real estate front. Though a couple of enterprising developers had set foot in the area as early as 2002, it was not before 2004 that GS road struck chord with property seekers and investors. Omaxe Construction Limited laid the foundation of its residential project South Avenue in 2002, Ashiana Homes embarked on Silver Crescent, a residential development in 2003, Eldeco Infrastructure and Properties Limited put up Eldeco Mansion villas, Vatika Group launched Vatika City and Niho Construction initiated Scottish Castle during the same year.

Growing Demand

The impetus that GS road received from these established developers then has today transformed the area into one of the most sought after property destinations of the NCR. “When the availability of land was more or less choked in other areas, Sohna road became the obvious choice”, says Sunit Sachar, VP (Marketing), Parsvnath Developers Limited. As on date, the fast paced real estate developments and the growing interest of property owners has sent the prices soaring.

Prices

“Most initial announcements for apartments were in the range of Rs. 1300-1500 per sq ft. However in the middle of 2005, prices steadily climbed at a rate faster than in 2004. In 2006 the prices have reached the current levels, which are almost 100% higher appreciation than the launch prices three years ago,” says Ramesh Menon, Head-Strategic Consulting, Ground Realty.

At present, the rates of residential projects are pegged upwards of Rs.2800 per sq ft. Says Muneet Jhakar of JMD Group, “The prices have doubled over the past two years. The on-going residential rates ranges between Rs. 2800 and 4200 per sq ft.” While the plots in the area are tagged in the range of Rs. 30,000 to 50,000 per sq yd depending on the location and project, the price of an apartment hovers around 55-70 lakhs and penthouses are priced over a crore. Not just residential but even the price of commercial properties are also witnessing an upturn.

While the office space is estimated to range between Rs 5000 to 6000 psf, the mall space wavers in between Rs 6500 to 8000 psf, depending on the floor, size, and location of the space inside the building. According to Major Gen Jayant Varma, ED (North), Knight Frank India Pvt Limited, "Currently, the outright retail purchase rates are between Rs 10,000- Rs 15,000 psf.

Source:Realtyplus
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  • Sohna road is end users’ haven

    In recent times, Sohna Road has emerged as an attractive destination for end users. S K SINGH writes



    If you are travelling along the NH-8, take a left turn at Rajiv Chowk. This brings you to Sohna Road, which runs from north to south.

    This area of Gurgaon, where development began barely sixseven years ago, has now developed into an attractive destination for end-users.

    Connectivity advantage

    Besides being connected to NH-8 in the north, Sohna Road is intersected by Golf Course Extension Road towards the south.

    According to Gurgaon's new master plan, Sohna Road will be developed into a state highway. Already, work on converting it into an eight-lane road is underway.

    The master plan also shows a Southern Peripheral Road which will intersect Sohna Road near Vatika City (Sector 49). Manish Aggarwal, the executive director of Cushman & Wakefield India, says: "Once the widening of Sohna Road is completed and the peripheral road is built in the next two to three years, Sohna Road could well emerge as the new city centre, given that Gurgaon is developing rapidly towards the south."

    The master plan also shows that the route for the proposed Metro line will run along Golf Course Extension Road and the Southern Peripheral Road. If and when the Metro line is built, travel time from Sohna Road to MG Road and Delhi will get reduced.

    Sound infrastructure

    Sohna Road offers a good example of mixed-use development. Adequate provision has been made here for residential, office and retail spaces. Ravi Saund, the chief operating officer of CHD Developers, says: "One of the prime attractions of Sohna Road is that it offers walk-to-work culture. The commercial space that is being developed along this road is already functional or will soon be ready for occupancy. People who have shifted to Gurgaon are those who travelled from Delhi earlier. These people are tired of spending four hours daily on the road. To be able to reach their office within five minutes, as is possible if you live on Sohna Road, is a welcome change for them."

    Saund adds that in recent times, the government has been putting in a lot of time and money on improving infrastructure here. "The sewerage problem has been taken care of. Sohna Road itself is being widened and unauthorised constructions on both sides of the road have been removed," he says.

    As for social infrastructure, the area has three malls by Omaxe - Liberation Mall, Omaxe Mall, and Omaxe House to Home Mall. Besides, there are malls by developers like Raheja group (R-Mall), 9X and ILD.

    Office space has been developed by groups like Spaze, Vipul, Orchid, Bestech, ILD, Vatika and JMD.

    Schools, however, are located at a distance of 10-15km. The chief ones are GD Goenka (on Sohna Road towards Sohna), Pathways (near Badshahpur in Aravali), and Ryan International.

    Among hospitals, Vedanta is in Sector 39.

    Pricing and appreciation

    In projects that are still under construction, apartments are available for Rs 4,500 to Rs 7,500 per square feet. In projects that are ready-tomove-in or where possession has already been given, prices range from Rs 7,500 to Rs 9,000 per square feet in the secondary market. Luxury apartments and villas cost as much as Rs 10,000-11,000 per square feet.

    In Vipul World plots are available for Rs 75,000-80,000 per square yard. In Unitech Nirvana II and in Malibu Towne, they cost Rs 65,000-70,000 per square yard.

    The area has provided sound returns to early buyers. Aggarwal of C&W India says: "When apartments were launched in this area about five years ago, they were available for Rs 2,500-3,000 per square feet. Since then prices have increased almost three times. This is primarily due to the infrastructure development that has happened on Sohna Road and all the development that is taking place to the south of this area - from Sector 70 to 90."

    What is in it for end users?

    Sohna Road has emerged as primarily a destination for end users. Aggarwal says: "In the residential projects that are operational, occupancy is almost 90-95%, one of the highest in Gurgaon." That's because the area offers both good connectivity and sound infrastructure.

    Most of the residential group housing projects that were launched five-six years ago are up and running, so a lot of ready-tomove-in space is available here. Sanjay Sharma, the managing director of Qubrex, a Gurgaon-based broking firm, says: "Since the properties are ready, what you see is what you get. Thus, the risk that exists when you buy a property under construction gets eliminated." He adds that social infrastructure is also in place. "As the area gets populated, the malls will fill up, and people will not have to travel to MG Road even for bigticket purchases," he says.

    The area is still reasonably priced compared to several others. "Compared to the price range of Rs 7,500-9,000 per square feet for ready apartments here, on Golf Course Road prices range from Rs 12,000-13,000 per square feet," Pradeep Mishra, a Gurgaon-based real estate analyst says. Sharma says: "In the Dwarka Expressway area, which has neither infrastructure nor any developments in place, prices have already climbed to an average of Rs 5,500 per square feet."

    Should investors invest here?

    Aggarwal of C&W India says that Sohna Road has become more of an end-user destination and investors may not find it too attractive any longer. "Investors generally like to enter at a lower price point. They would not like to come in at a stage when possession has already been given in several projects (a big price spurt generally happens near or at the point of possession) and end users have begun to live in the area," he says. Currently, the ideal destination for investors, according to him, would be the Gurgaon Extension areas of Sector 80 to 93, where prices range from Rs 4,000-5,500 per square feet.

    Saund of CHD Developers says that many early investors are still holding on to their investments. "In Sohna Road area, you find a number of investors who have not sold and moved out despite the price appreciation. Instead they have taken possession of their apartments and rented them to out-of-town professionals. A three-bedroom apartment easily fetches a rent of Rs 50,000 per month. Since these professionals get transferred in three years, there is no danger of your property being taken over. While the rent takes care of EMIs and maintenance, the investor is still left with the capital gain which he can enjoy at a later date."

    Sharma of Qubrex is optimistic that prices will continue to appreciate. "The going rate for office space is an affordable Rs 6,500-7,000 per square feet for purchase and Rs 60-65 per square feet for rent. As all the space that is being developed gets occupied, demand for residential space will grow and this will drive prices upward." Mishra says one can safely expect an appreciation of 15-20% over the next one year.

    Watch out for

    Heavy traffic on Sohna Road could pose a problem in three years. Aggarwal of C&W India says: "The huge supply of IT space that is coming up here will get operational in one to two years. If the connecting roads to Sohna Road that have been planned are not ready soon, the area could face trafficrelated problems."

    Avoid purchasing an apartment in those group housing complexes where a conflict is brewing over quality of maintenance between the residents' welfare association and the developer or the facility management agency appointed by him.

    Finally, if possible, stick to projects situated right on Sohna Road. If you go off the road and too deep inside, you may find that infrastructure is not up to the mark there.


















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    CommentQuote
  • I completely agree with the article.. you see I have kept my user name on this road as I believe it will give the most returns in coming years.. atleast next three years, you can expect the prices to reach the current GC Road levels.. in fact i believe sohna road story is even better than GCX Road story due to its excellent connectivity with NH-8..
    CommentQuote
  • Originally Posted by sohnaroad
    I completely agree with the article.. you see I have kept my user name on this road as I believe it will give the most returns in coming years.. atleast next three years, you can expect the prices to reach the current GC Road levels.. in fact i believe sohna road story is even better than GCX Road story due to its excellent connectivity with NH-8..



    You talk more like a dealer dude obsessed with sohna road :)

    Sent from my 9790 using Tapatalk
    CommentQuote
  • Originally Posted by akaash
    You talk more like a dealer dude obsessed with sohna road :)

    Sent from my 9790 using Tapatalk

    SohnaRoad obsession is not unfounded though!. I second it. In last 2 years the whole stretch has seen tremendous growth, I hope the same expansion goes up until Sohna.
    CommentQuote
  • Rental rates mentioned in the article is absurd for sure. Only Last month I saw a "luxury" 3BHK for 28K including maint. Most of the 3BHK I saw were between 25-30K.
    CommentQuote
  • My view on Sohna Raod:

    Pluses:
    1. Lot of ready to move in property. Most of these properties were launched in 2004-2005 and are low density townships. eg: Vipul Greens just 600 flats in 17.5 acres of land. In today's time the builder would have constructed close to 1200 flats in the same 17.5 acres.
    2. Lot of commercials operational. Spaze being the leading one. We now have Cap Gemini, Xerox etc already working out of these commercial spaces.
    3. Food Joints: You name it and it's there. Bikaner, Dominos, pizza Hut, Haldiram, Makhan, Moets etc
    4. Shopping Paradies: You have shoppers stop, Nike, Reebok, Addidas, Easy Day, Big Bazaar etc
    5. Schools: Shri Ram Early Years already operational. We have Amity, DPS in 5 KM radius.
    6. Hospitals: Park Hospital oprational, and Medcity < 5 KM
    7. Heard Genpact coming up with 2000+ seats office in JMD Megapolis
    8. Car showrooms: Mahindra, Maruti, Volkswagen, etc

    Minuses:

    1. Never ending work on Sohna Road. This needs to be finished at the earliest.
    2. Road Widening started, this will take some time and people living on Sohna road will have to face issues on every day basis till the time work completes.
    3. Market like Galleria missing. Although a market just opposite to Orchid Petal coming up in the same format.
    4. It still doesn't have a snob value like Golf Course road.
    CommentQuote
  • Originally Posted by akaash
    You talk more like a dealer dude obsessed with sohna road :)

    Sent from my 9790 using Tapatalk

    Sohna Road is going to be the road of the future.. you just need to have patience of around 2 more years.. then you will realise that its beyond reach..

    If Golf course road is referred to as Gold Course road, then for sure Sohna road is SONA Rd..

    The prices here in projects like Vipul Greens, Central Park - 2 will touch Vipul Belmonte and Central Park -1 current levels in 2 years
    CommentQuote
  • sohna road gurgaon zinda baad.. 3 cheers for our very own sohna road..

    mere desh ki dharti.. mere desh ki dharti sona ugley .. ugley here moti.. meri sohna road..
    CommentQuote
  • JMD IT Megapolis

    What is the current state of prices and commercial properties at Sohna road,
    specially JMD IT megapolis and Splaze It park
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  • In Spaze IT, prices are 5500 ++. It has gone up in the past few months.

    In JMD, you may get it for 5000. There are some distress deals available for lesser prices if you search hard. Hardly any occupancy in this building and there are some transfer issue rumours floating around.
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