Sohna Road: An attractive residential destination
Mar 12, 2014
Source : The Times of India

 

DELHI: With a large number of residential projects completed or nearing completion, and many office complexes already occupied by leading companies, Sohna Road in Gurgaon has emerged as an attractive residential destination for end users and long term investors.

Location advantage 

Sohna Road enjoys good connectivity. It is linked to NH-8 and Rajiv Chowk. The last Metro station in Gurgaon is barely 3-4km from here. Other major roads of Gurgaon like Golf Course Road and Golf Course Extension Road are easily accessible from here.

The Southern Periphery Road intersects Sohna Road near Vatika City (Sector 49). You can travel to Faridabad via Faridabad-Gurgaon road from here. The KMP Highway is also accessible from here.

Infrastructure needs to improve 

The widening of Sohna Road is over. At Subhash Chowk a flyover is under construction. Though it leads to jams at peak hours currently, once completed it will improve the flow of traffic. However, for an area where so many residential and commercial complexes have come up, there are quite a few infrastructure-related shortcomings.

The main Sohna Road gets jammed in the evenings due to lack of traffic management. The inner roads are narrow and not in a good condition. Some of the low-lying areas also get water-logged after heavy showers. While the private apartment complexes have power backup, the plotted developments face electricity shortages during summers as they depend on the government’s electricity supply. As for public transport, most people here depend on auto rickshaws as the bus service is not very frequent.

Adequate social infrastructure 

Most of the elements of social infrastructure that end users desire are available in and around this area. Medanta Hospital is situated nearby in Sector 39. Several other smaller hospitals and clinics are also present here.

A number of schools are already operational in and around Sohna Road, while several new ones are under construction. GD Goenka School is situated on Sohna Road itself. Heritage School is situated on the Golf Course Extension Road. DPS is in Sector 47 while Ryan International is around 6-7km from Subhash Chowk. Pathways School is around 15-20km away in the Aravali.
Some of the malls that are located in and around Sohna Road are Galleria, Omaxe Celebration, Omaxe Plaza, Omaxe Home to Home, and ILD’s Trade Centre.

Property rates stagnant

The going rate for apartments on Sohna Road is Rs 7,500-10,500 per square foot. Plots, on an average, are available for around Rs. 80,000 per square yard. If the plot is located in the interiors, you could even get one for Rs 70,000-75,000 per square yard.

Prices have been largely stagnant over the last one year and, in the near future also, they might not move up much. “At present most market participants are hopeful that prices may move up after the general election. My own opinion is that markets may remain stagnant for the next one to one and a half years,” Pradeep Mishra, head of Gurgaon-based Sainik Estates, says.

Rajan Ahuja, director of Realty & Verticals, says: “The price of apartments is already quite high due to the appreciation witnessed over the last four-five years. Moreover, the overall economic scenario is bleak and the real estate market is stagnant. ”Hence, one should not expect quick appreciation in this area.”

For end users the advantage that this area offers is that 70-80% of the developments on this road are already ready or nearing completion. If you invest in a property that is three-four years away from completion, or where the infrastructure is not ready, there is the risk that the project may get delayed or not be built at all. Here that risk doesn’t exist.

“This area is well suited for long-term investors who have an investment horizon of four-five years. Those looking for short term gains should steer clear of this area,” Mishra says.

Investing in plots in this area remains an attractive option. “Plots are likely to offer better price appreciation in the times to come, because they are still not very expensive. The price of apartments, on the other hand, is already quite high. For Rs 2-2.5 crore you can build your own house here over 200 square yards,” Ahuja says.

High rental demand 

Over the last couple of years, a number of companies have leased office space here. Corporations that are not able to afford properties close to NH-8 in the DLF area, where the going rate is Rs 120-130 per square foot, opt for Sohna Road where the rental rate is much lower at Rs 45-65 per square foot.

A large number of people who have their offices here want to live in the vicinity. As a result, demand for rental housing is high. The current rental rate for residential apartments in this area is around Rs 15-20 per square foot, depending on location and quality of the space.

Exercise caution 

Invest in this area only if you are a long term investor. It is preferable to opt for ready-to-move-in properties where there is no development risk. Choose projects where the quality of service and maintenance is good.

“Those are the properties that tend to see good appreciation over the long term,” Mishra says.

Usually, appreciation comes at the start of the project and then at the time of possession. Once people start living in a project, appreciation depends on the quality of the building and the facilities-how well is the project maintained and how good is the quality of services. Next, avoid buying in a disputed property. Make sure that you will be able to register the property in your own name. If you are buying off the main road and in the interiors, check that the approach way to your property is wide and clear and that the road is in good shape.

To round up, in many other parts of Gurgaon, apartment complexes are still under development and will take three to four years to come up. There is a lot of risk regarding when the project will be completed and delivered. If you do not want to take that risk, you should opt for Sohna Road where most projects are complete or near completion.

If you want to place a safe, long-term bet in a well-developed area, you should opt for Sohna Road.

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