Sohna Road: The new boom town

The availability of land parcels for residential and commercial development is one of the main factors driving development in this location. This has led to a surge in demand and appreciation in property prices on the Gurgaon-Sohna Road. The Master Plan 2021 for the city has opened up many sectors for real estate development. With 30-35 sectors getting approval,the area is witnessing heightened real estate activity.

Over the last year,real estate values in have shown a significant appreciation of almost 50 per cent in both the residential and commercial segments,making it a sought after destinations for investors.

Residential plots in the area range between Rs 70,000-80,000 per square yard,prices for apartments range between Rs 6,000-9,000 per square foot. Commercial projects command Rs 12,000 per square foot while IT parks come for Rs 5,500-6,000 a square foot.

One of the major reasons for the growing demand is the enhanced connectivity options and the infrastructure that is improving,but not enough to keep pace with the growth in the area.

Old Gurgaon is saturated and even NH-8 offers no scope for development. After NH-8,the only availability of raw land for expansion of Gurgaon is Sohna Road. The Gurgaon-Sohna Road is proposed to be widened to six lanes with good connectivity to NH-8 and this has made the area the next residential destination.

A key driver of demand is the employment generated in Gurgaon. There is a large inflow of well-paid professionals into Gurgaon every year,which translates into strong demand for housing in peripheral areas.

Demand also comes from people who want a second home,either for spending their weekends,or for renting out. In several high-end complexes,corporates have bought apartments in bulk to house their senior executives.

Increasingly,non-resident Indians have shown interest in plotted developments with an intention of owning a villa in Gurgaon. Some of the prominent developers having a presence are: Vatika Group,Bestech Group,Vipul Group,CHD Developers,Parsvnath Developers,JMD Group,Unitech,Spaze,Omaxe,Central Park.

Looking at the pace of development,it is evident to investors that Sohna Road is all set to become one of the busiest and expensive localities in Gurgaon.

Good connectivity to the airport and the upcoming infrastructure has led to appreciation in value.

It is expected that in the near future,the place will see an average capital appreciation of around 15-20 per cent depending on individual projects and locations.

The major strength of Gurgaon-Sohna Road lies in the massive employment opportunity available within a 10-15km radius.

It is a matter of time that the booming residential development would see a growth in industrial and commercial development of the kind seen on the Mehrauli-Gurgaon road.

During the global slowdown,commercial real estate prices underwent a correction throughout the NCR. But with a numerous retail giants branching out on Sohna Road,like Bharti Easy Day,SRS Value Bazaar,SRS Multiplex etc. have found support on current levels and developers are expecting rates to go up by 25-30 per cent on commercial segment.

Proximity to the airport and the planned infrastructural development in educational and hospitality sectors,have also driven prices.

Commercial space on this road also commands fabulous prices,which keep rising depending on the location and preferences like floor plan,floor size or the inside area of the building.

Owing to its connectivity to NH 8,Golf Course Extension Road and NCR,and being in the vicinity of Roz-Ka Meo industrial area,Delhi Airport and the upcoming Kundli-Manesar-Palwal Expressway,the place has witnessed continuing demand by investors.

Observing the extent of industrial development in Manesar and Gurgaon,it is certain that Gurgaon-Sohna road could be the new target for many industries.

Gurgaon-Sohna road,is no doubt the fast developing stretch of the city,and is soon going to be the next destination for commercial and industrial development in Gurgaon.

— The author is MD,Bricston Realtors