The emergence of new micro markets such as Dwarka Expressway presents opportunities for both middle class and upper middle class buyers whose budget is in the range of Rs 3,500-7,500 per sq ft to invest in residential real estate for end use and capital gain in Gurgaon.
Many renowned developers such as BPTP,Puri Constructions,Raheja Developers,Mahindra Lifespaces,Sobha,Indiabulls,M3M,Emaar MGF,CHD Developers to name a few,have launched projects and commenced construction in this location.
The under construction 18 km long Expressway will connect Dwarka (Delhi) and Delhi-Gurgaon Expressway (NH-8) and will help decongest NH-8,particularly near Delhi-Gurgaon border toll plaza,which has witnessed unprecedented traffic growth. It will connect western parts of Delhi to Gurgaon and will also drastically reduce travel time from Delhi to Gurgaon and is also expected to have a metro line,which would run parallel to it. Also,the expressway will pass through Palam Vihar and the planned Special Economic Zones,thereby enhancing the connectivity of the residential and commercial projects to other prominent nodes of the National Capital Region.
Given the increase in the number of companies operating out of Gurgaon and limited availability of mid-segment residences in Gurgaon and Delhi,Dwarka Expressway is emerging as an attractive alternate location for investment and/or end-use.
Currently,nearly 19,000 units are in various stages of construction,of which nearly 10 per cent cater to high income buyers with the remaining targeted at mid-income buyers. Most of the projects are expected to be completed in phases by 2015-16,in line with the completion of the Expressway itself wherein there will be proper connectivity / access for residents.
Currently,not a single project has been completed along this stretch,but there is still substantial buyer interest with very healthy transaction rate.
The last year witnessed an increase in the number of new launches,especially in the second half with most projects catering to high income earning buyers. As per the past market trends,Dwarka Expressway is expected to witness same growth trajectory as other Gurgaon locations such as Golf Course Road and Golf Course Extension Road have witnessed.
The amenities provided by most developers are better than that in Dwarka and are at 30-40 per cent cheaper than prominent locations in Gurgaon. Already,with the rise in demand,the capital values on Dwarka Expressway have more than doubled from Rs 2,250 per sq ft to Rs 5,250-7,500 per sq ft during the last couple of years.
The close proximity to IGI Airport,Delhi Aerocity and the upcoming Diplomatic Enclave that will house various embassies,will further boost the investor activity driving the prices further up in the residential asset class in this region. It is expected that future supply in Dwarka expressway will be launched in the price range of Rs 7,000-8,500 per sq ft or even higher with bigger apartment sizes primarily due to higher land cost.
The author is ED,residential services,Cushman & Wakefield