By Surabhi Arora
The Southern Peripheral Road (SPR), a 150 metre wide road is a part of New Gurgaon that is drawing attention of many end-users and investors. It is positioned as an up-market location which is expected to fetch a handsome appreciation in the years to come. This 16 km-long road connects Golf Course Extension to National Highway 8 and intersecting Sohna Road at Badshahpur.
Excellent connectivity to existing commercial hubs is the prime demand driver of this location. The New Gurgaon-Sohna Master Plan 2031 focuses on developing major infrastructure on SPR like metro connectivity, link to Gurgaon-Faridabad Road and extending the SPR into a six-lane expressway.
However, a part of the road is not yet complete because of some legal dispute over acquisition of land. Currently, the Southern Peripheral Road has a three-lane stretch for a few kilometres, after which the width reduces to two lanes. The central part of the road and the last section of SPR near Gurgaon-Sohna Road do not have proper road geometrics. Once completed, this road will provide excellent connectivity of NH-8 to Golf Course Extension road.
Developers such as Unitech, DLF, Tata, Raheja Developers, Ireo, Parsvanath, BPTP, Vipul, and Emmar MGF have large tracts of land in this area. Many developers such as Tata, Unitech, BPTP and Spaze have already launched their premium projects in this location. Approximately, 20,000 units are under construction in various sectors along this road. Apartments being developed in these micro-markets are typically 3 and 4 BHK of 1,500 to 3,000 sq. ft.
The location is all set to become premium residential hub as most of these projects launched in this area to be equipped with modern amenities such as clubs, swimming pools, gym etc. and promised high specification in terms of interiors like imported flooring, modular kitchens, VRV air conditioning etc. The under-construction properties are currently, priced in the range of Rs 4,500 to Rs 9,500 which is approximately 20-30 per cent lesser than the ready to move in projects in Sohna Road and Golf Course Extension Road. Few project such as Tulip Infrastructure and Spaze Developers are also offering ready to move apartments in this area. These projects are located in the initial part of southern peripheral road towards Sohna.
Besides residential, this area has a great potential for institutional and commercial development. Sectors 74 and 75 are designated for commercial and institutional development. Moreover, the front belt of Sectors 71 and 73 also earmarked for commercial developments. Few commercial projects by Hines in sector 74A, Spaze Developers and Tapasya Group in Sector 70, are already launched. These projects offer a mix of retail and commercial office spaces.
In the last one year, due to adverse macro-economic sentiments the prices have been stagnant in this micro market. This pressure on the residential market has been continuing for a while now and still there is a low interest among investors especially in the premium under construction projects.
Moreover, the delay in completion of part of the road is also one of the negative factors impacting this particular micro market. The developers are however offering innovative payment plans such as partial payment on possession and possession linked plan to generate sales amid waning demand.
After the new government formation, the city residential demand scenario is likely to improve in near future. An increase in the number of enquiries for residential properties has been seen across the city. However, transaction volumes have not improved much, but an increase in residential sales is expected in the coming quarters.
SPR offers a host of options for investment by reputed developers at prices which has potential for capital appreciation. Once the entire road become operational, more developers are expected to launch projects in this area. Due to its inherent location advantages this micro market is bound to see positive growth in the next few years.
The author is Associate Director-Research, Colliers International