DELHI: Investments in real estate have been one of the greatest wealth builders in history. However, such investments have to be well gauged and thoroughly researched, a report by DTZ says. Over the years, a few micromarkets in the Delhi NCR have emerged as destinations for future investments, which are not only providing relative affordability but are also undergoing significant transformations owing to infrastructural development, improving connectivity, and the potential to attract real estate demand across segments—residential, office, and retail.
Gurgaon—commonly known as Millennium City—and its satellite towns are some of the growth engines driving real estate development in the Delhi NCR.
The Millennium City is home to 300 of the 500 firms on Fortune 500. Consequently, it has thousands of white-collared workers living here.
Udyog Vihar, DLF Cyber City, MG Road, and Golf Course Road are the established micro markets of the city. Udyog Vihar and Cyber City are primarily IT-ITeS office hubs while MG Road and Golf Course Road are commercial hubs of the city.
In Gurgaon, the sub-micro markets of Sohna Road, Dwarka Expressway, and the new sectors (Sectors 76 to 95 along NH-8) are on track to become the future real estate hubs of the city. A slew of infrastructure projects under construction, large availability of developable land and comparatively lower property prices are some of the key attributes which make these locations potential investment destinations, the DTZ report said.
Sohna Road has developed into a self-sustained ecosystem with a good mix of commercial, residential and retail segments. The area is well connected to NH-8 and Golf Course Extension Road.
The alternative route to NH-8 via Southern Peripheral Road (SPR), now under construction, will further boost its connectivity. Sohna Road has upscale schools like GD Goenka World School and Pathways World School, and high-end healthcare facilities like Medanta Medicity and Artemis. Sohna Road has transformed from a low-profile suburb to a much-sought after real estate investment hotspot. The competitive advantage of Sohna Road is primarily fourfold: Demand for a wide range of residential and commercial premises at comparatively lower rates than in the established sectors of Gurgaon Proximity to established real estate hubs of the city Good connectivity and infrastructure development Lucrative financial returns in last four years, which exceed benchmarks of several established real estate hubs in the metropolis
Glittering Stars of North
This is the fourth of the six-part Glittering Stars of North series Times Property is bringing you on market trends of the real estate sector in leading micro markets of the NCR. This issue will cover Gurgaon and its satellite markets like Dwarka Expressway, Sohna Road, NH-8, and the new developing sectors there. Identifying the competitive advantage
For any market, developing a real estate competitive advantage is a holistic approach.
While lucrative financial returns attract investors and HNIs, infrastructural development and connectivity between commercial and residential hubs fuels demand from end users, the DTZ report said. Further, growing real estate demand draws reputed developers, which further improve the overall branding of the micro market.
Sohna Road has emerged as the most preferred location in the Millennium City, second only to the well-established office hub of DLF Cyber City. The growing preference of the sub-micro market can be attributed to the high availability of quality space at comparatively low rentals. This translates to substantial cost savings for the occupiers without compromising on the quality of infrastructure.
A number of projects by developers like Vatika, Vipul, Unitech, Malibu, Bestech, JMD, Parsvnath, and SS Group have already been delivered and the area is good for end users.
In the long run, forthcoming universities and institutions in the area may bring about high rental incomes and thereby push capital appreciation, the report says.
New residential projects are coming up in the adjoining areas of Sectors 33, 34, 48 and sectors along the Southern Peripheral Road and are a good investment option as most of them are under construction, offering potential for capital appreciation.
Dwarka Expressway, also known as the Northern Peripheral Road, is a new link connecting Dwarka with Gurgaon through an eight-lane, 150-metre-wide expressway starting from Dwarka in Delhi and connecting Palam Vihar, Gurgaon and then joining up with NH-8.
It is being developed under the publicprivate partnership (PPP) model. It is one of the latest hotspots for real estate opportunities for home-seekers and potential investors.
Dwarka Expressway’s proximity to Delhi and the IGI airport gives it an edge over other developing real estate destinations like Dharuhera, Bhiwadi, Yamuna Expressway, and Noida-Greater Noida Expressway.
The competitive advantages of Dwarka Expressway are:
- Good connectivity with Gurgaon and Delhi
- Close to the IGI airport
- Better infrastructural development expected
- Better quality residential units at lesser cost
Identifying the competitive advantage
The area has seen substantial appreciation in the last couple of years and it can be considered as an emerging real estate destination with good potential for growth.
In the last five years, Dwarka Expressway has registered more than 150% increase in average residential capital values-from Rs 2,400 per sq ft in 2009 to Rs 7,000 in 2013.
Between 2009 and 2013, the location has registered the second highest number of project launches, after new sectors in Gurgaon. Nearly 18,000 residential units have been launched hereacross 44 projects ranging from mid to premium category in the last five years, the DTZ report said.
Almost all the prominent developers like Puri Constructions, Raheja, Mahindra Lifespaces, Sobha Developers, Ansal Housing, Assotech Limited, ATS, Paras, Ramprastha Builders, etc, have launched more than 50 projects between them on Dwarka Expressway, which are at various stages of construction. These projects range from mid-end to premium segment.
The expressway is still under construction and is likely to be completed this year. Once the expressway is operational, travel time from Gurgaon to west Delhi during peak hours is likely to be reduced, on average, from 90 minutes to 45 minutes.
This area is being developed with better infrastructure and roads are expected to be 60-75 metres wide facilitating smooth traffic flow. The sewage and electricity distribution systems are also likely to be better and more advanced.
New sectors (NH-8)
The new areas like Sectors 76-95 are strategically located at the intersection of NH-8 and Dwarka Expressway.
These are also in close proximity to Manesar and the Kundli-Manesar-Palwal (KMP) Expressway, under construction, which will link NH-8 with NH-1 and will help in diverting a lot of heavy, commercial traffic out of the municipal limits of Delhi.
These sectors have registered the highest number of project launches, in terms of number of units, in the last five years.
The competitive advantages of these new sectors are:
- Projects here are in an advanced stage of construction
- Arterial roads and approach roads to various projects are already present or are under construction at a relatively faster pace
- Land here is free from any litigation
- Affordable pricing, compared to other micromarkets like Dwarka Expressway and Sohna Road Multiple approach roads
Identifying the competitive advantage
The average residential capital values in the new sectors have appreciated by more than 100%—from Rs 2,600 in 2009 to Rs 5,700 today.
Some of the key developers that have launched projects here are DLF, 3C, Raheja, Vatika, Orris, Sare, Anantraj, Supertech, Ambience, Spaze, Uppals, Vipul, etc.
A number of initiatives on infrastructural development by the government may add further sheen to the area. The Kundli-Manesar-Palwal Expressway (likely to be completed by 2014-15) has boosted the investment profile of the area. The widening of NH-8, from four lanes to six lanes, along most of its length, from Gurgaon till Jaipur is currently in progress and is likely to be completed this year.
The fast-paced development of both physical and social infrastructure has further boosted the real esatte development character of the sectors.
The only bottleneck in absolute realization of real estate growth in these sectors is the distance and not-so-robust connectivity with the national capital and the IGI airport, at the moment. However, once Dwarka Expressway is completed, connectivity of these areas will improve tremendously.