Tag Archives: Dwarka Expressway

The Dwarka Expressway is driving the real estate revival in Gurgaon

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With the Dwarka Expressway, businesses, residents, and investors stand to gain much from the promise of better accessibility and enhanced connectivity. 

Gurgaon’s real estate market has experienced a surge in activity due to the Dwarka Expressway, drawing interest from investors and homebuyers. In the history of Gurgaon’s development, this corridor marks a critical turning point that will transform the city’s skyline and spur economic growth. In addition to increasing property values, the expressway has spurred economic activity nearby and electrified infrastructure to expand. Gurgaon is currently a leader in India’s growing real estate market, drawing interest from domestic and international markets. The Dwarka Expressway is creating a lot of talk, highlighting how important it will be in deciding Gurgaon’s status as a vibrant and future metropolis. 

The real estate market in Gurgaon is experiencing a notable upswing, primarily due to improved connectivity between Delhi and Gurgaon. Maintaining the growth pace relies heavily on the central peripheral road, which is essential between the Dwarka Expressway and Sohna Road via the Southern Peripheral Road (SPR). The recent opening of the Dwarka Expressway’s Haryana segment by Prime Minister Narendra Modi is expected to improve traffic flow and reduce congestion between Delhi and Gurgaon. Experts in real estate note that the Dwarka Expressway in Gurgaon is growing in popularity as a residential area and predict the construction of opulent residential complexes shortly. Furthermore, a rise in housing prices is inevitable due to the expressway’s operationalization, as this will reflect its increased accessibility and desirability. 

The Dwarka Expressway Gurgaon corridor has become a popular residential area, attracting buyers with its varied housing options and better infrastructure. Reputable builders have contributed to this boom by starting several projects nearby, enhancing Gurgaon’s standing as a top destination for real estate investment. 

Over the last ten years, the area has witnessed the arrival of about 53,000 new housing units, of which more than 80 percent have already been snatched up by eager buyers, according to data from real estate consultancy Anarock. The primary residential market along the Dwarka Expressway has experienced a surge in average property rates due to strong demand. As of the end of 2013, the rates have risen from Rs 4,530 per square foot to Rs 8,300. This demonstrates the corridor’s appeal and bright future for successful real estate endeavors. 

The Dwarka Expressway passes through several important Gurgaon sectors, including 81 to 115. Its catchment area includes sectors 36A, 36B, 37D, 88B, 99, 102, 103, 104, 106, 107, 108, and 109. It is noteworthy for having connections to the Delhi Mumbai Expressway, Manesar Road, and Pataudi Road. With the completion of the Haryana section of the expressway, developers are hopeful that their recent investments will finally pay off. This corridor is said to have delivered about 150 residential projects, and more high-end projects are expected to be launched soon. The opening of this crucial road infrastructure is expected to have a major effect on neighboring Delhi, especially on the residential zones in different villages, as well as revitalize areas within Gurgaon. 

The Dwarka Expressway may also be of major benefit to the economy, directing the development of Gurgaon. Its revolutionary effects on the real estate industry and the broader economy highlight the significance of infrastructure in prompting growth and prosperity. Gurgaon is positioned to become a model for sustainable urban development and economic prosperity in India due to the expressway’s opening up new investment and connectivity opportunities. 

Wide-ranging effects include increased economic activity, job creation, and improved liveability for the region, expected from this infrastructure project. With the Dwarka Expressway, businesses, residents, and investors stand to gain much from the promise of better accessibility and enhanced connectivity. Gurgaon is well-positioned to demonstrate its potential as a dynamic and vibrant economic hub that will propel innovation, growth, and prosperity for years as it embarks on this path of significant change. 

Gurugram real estate prices after the opening of the Dwarka Expressway

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One of Gurgram’s primary residential hubs is now the Dwarka Expressway. Plans call for constructing upscale residential structures alongside business and retail ventures. 

On March 11, Prime Minister Narendra Modi officially opened the Haryana section of the Dwarka Expressway. It will improve traffic flow and lessen congestion on NH-48 between Delhi and Gurugram. Real estate experts say the Dwarka Expressway in Gurgram has become a significant residential hub. Plans call for the opening of commercial and retail buildings in addition to upscale residential properties. With the expressway now operational, housing prices should also gradually increase. 

At an approximate cost of Rs 4,100 core, the 10.2-km Delhi-Haryana Border to Basil Rail-over-Bridge (ROB) and the 8.7-km Basai ROB to Kherki Daula compromise the two packages of the Dwarka Expressway’s Haryana segment.  

I will offer direct access to the Gurugram Bypass and Delhi’s IGI Airport. A backup connection between Delhi and Gurgaon has to help ease traffic congestion. 

Residential clusters are starting to appear alongside the Dwarka Expressway.

The Dwarka Expressway has enhanced connectivity between Delhi and Gurgram and allowed the growth of residential clusters alongside it, according to a JLL analysis. The region’s transition into a priority development zone is the primary driver of the cluster’s overall growth. 

In 2023, 12,409 residential units were sold in this submarket, making up 66% of all sales in Gurgaon. In comparison to 2022, sales increased by 67%. The incredible value of these residencies was Rs 25,000 crore. 97% of these 12,409 units were still in construction when they arrived for sale. According to the JLL analysis, customer confidence in these under-construction projects is rising with their timely completion. 

The new hub for upscale debuts in Delhi NCR is the Dwarka Expressway-New Gurgaon cluster. This submarket was home to 11,270 dwelling units in total in 2023, accounting for 69% of Gurgaon’s total launches. According to the analysis, 4,231 units went on sale in 2022, a 166% increase over the previous year. 

Notably, this submarket is also seeing the launch of high-end projects. Up to 38% of the new launches in this cluster had a budget of at least Rs 2.5 crore. 

A few project launches saw all of their sales within a few days of their launch, and the launches received demand, according to Samantak Das, Chief Economist and Head of Research at REIS, India, JLL. 

Since CY2022, real estate developers have spent over Rs 3,100 crore purchasing roughly 175 acres of land in this submarket over 17 different transitions.

Since 2022, real estate developers have purchased about 175 acres of land in this submarket through 17 transactions totaling more than Rs 3,100 crores. Ritesh Mehta, Senior Director and Head (North and West), Residential Services and Developer Initiative, JLL India, stated that in addition to outright purchases, developers have signed JDAs/JVs for over 30 acres in this submarket to develop real estate projects in the past year. 

In 2023, this cluster saw the construction of over 11,000 housing units. In this submarket, 29,742 units are presently under construction. RRemarkably, 13, 476 (45%) of the projects listed as still in progress should be completed by 2024. 

The average capital value of the submarket increased by 15% from 2022 to Rs 10,000 per square foot in 2023. A more equitable price increase could happen as more products arrive in each submarket category. According to the JLL analysis, new phases of earlier projects are entering at higher prices due to the strong demand from buyers. 

“Even though the project missed a lot of deadlines, the better infrastructure in and around the area as of today will undoubtedly improve the real estate prospects of the region. In the meantime, more than 10,515 housing units in the area will get ready for occupancy, according to Santosh Kumar, vice chairman of ANAROCK Group. 

Effect on pricing and demand 

End users’ demand has increased due to improved connectivity from Dwarka and other areas of West Delhi. Most of these buyers want to move into apartments with modern amenities, like assigned parking spaces, to raise their quality of life. 

From 2013 to 2023, almost 53,030 units in a range of price points were introduced here, according to ANAROCK Research. Between 2020 and 2023, the average price of real estate in the area increased by a substantial 41%, from Rs 5,890 per square foot in 2020 to almost Rs 8,300 in 2023. Now that the Expressway is starting to operate, this may continue north. 

The project will completely transform Delhi to Gurgaon connectivity. In addition to cutting down on travel time, the expressway’s route through important locations like Harsaru, Pataudi Road, Farrukhnagar, and several Gurgram sectors will help to boost demand for real estate in recently developed areas, which has dropped because of poor accessibility. 

“This groundbreaking connection between Indira Gandhi International Airport and Dwarka Sector 21 is evidence of the government’s dedication to improving the quality of life for its citizens and promoting development in the surrounding area,” stated Mudassir Zaidi, Executive Director– North at Knight Frank India. 

The founder and CEO of Simplease, Gundeep, notes that property values along the Dwarka Expressway have increased. Going forward, new launches for major developers should cost more than Rs 20,000 per square foot. 

Recent months have seen a spike in the area’s real estate prices due to demand from Delhi. “Due to the area’s proximity to the capital, several individuals from Dwarka and particular parts of South Delhi are considering moving there. He claims that local residential developments’ amenities and lifestyles appeal to buyers. 

According to Pradeep Mishra, the founder of Homents and an expert in real estate, the Dwarka Expressway’s opening will facilitate access to the area and encourage more end users to buy property along the belt. 

The History 

Brokering properties in the market since 2011, Mishra says most of the developments launched along the stretch back in 2011 have prices between Rs 2500 and Rs 2700 per square foot. In 2012, these went up to about Rs 3,500 per square foot. At the close of 2013, a few developers entered the market with projects priced between Rs 6000 and Rs 7000 per square foot. After COVID-19, prices only marginally increased to Rs 7500 per square foot, with the focus being on unsold inventory. 

The news that the road would eventually open affected 2022-2023 real estate prices, with almost all new projects starting at about Rs 10,000 per square foot. Future releases are anticipated in the market, primarily in the luxury segment, pierced between Rs 18,000 and Rs 19,000 per square foot thanks to improved connectivity. According to him, the price per square foot of housing units in the secondary market is between Rs 13,000 and Rs 15,000. 

“Recently, the market has seen a rise in interest from buyers from West and South Delhi who wish to relocate to apartment buildings with contemporary features and assigned parking spaces. Non-resident Indians have also invested in projects along Dwarka Expressway,” he said.

According to Vineet Chellani, CEO and founder of Asset Deals, property values have increased in the market during the last four years. Buyers are end users who sold their South and West Delhi properties and moved into apartments with modern amenities. He thinks that prices in the area are likely to go up further. He predicted that “commercial properties too will witness increased traction going forward.”

The residential segments along the belt have seen a significant price increase, particularly in the premium and luxury segments, according to CBRE India. Luxury project prices (above Rs 4 crore) increased from 12% in 2022 to 26% in 2023. In 2022 and 2023, prices in the premium segment
(Rs 2 crore and Rs 4 crore) rose by 19% and 34%, respectively. The cost of projects in the mid-segment (Rs 45 lakh to Rs 1 crore) increased from Rs 10% in 2022 to 12% in 2023.

Are you thinking of renting an apartment? 

The cost of a 1500-1800 square foot apartment in a gated community near the Dwarka Expressway can range from Rs 30,000 to Rs 40,000 per month for a 3BHK unit. A 2 BHK has a marginally lower rent. According to him, the monthly rental costs of 4BHK apartments range from Rs 45,000 to Rs 50,000, while villas cost between Rs 1 lakh and Rs 1.5 lakh. Along the belt, there are also a few studio options accessible, claims Mishra.  

Unsold stock 

The Dwarka Expressway will undoubtedly change the surrounding real estate market. The ten-year wait for the expressway has already sparked a boom in residential construction, particularly in the areas that connect Delhi and Gurgaon. 

“We are seeing a promising decline in unsold inventory levels in these sectors, from a significant 25-30% 8-10 years ago to a mere 7-8% now,” stated Anshuman Magazine, chairman and CEO of CBRE’s India, South-East Asia, Middle East & Africa. “With the expressway now complete.”

Prospects for the future 

All parties involved in this significant public infrastructure project will profit once the expressway opens. It will also positively affect all kinds of assets. Future developments will include retail and commercial spaces, according to the JLL analysis. 

In the coming years, the belt will see an increase in premium residential properties and commercial and retail developments. In response to the growing demand, developers will continue to buy land parcels to begin new residential developments. It stated that residential launches will pick up steam in all price ranges.  

Assotech and Sunapollo to Build Rs 500cr Housing Project in Gurgaon

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Real estate Company Assotech and private equity firm Sun-Apollo Friday announced the development of a housing project in Gurgaon at an investment of about Rs 500 crore over the next three years.

Sun-Apollo Real Estate Advisors has invested Rs 75 crore to pick up nearly 50 percent stake in Assotech’s subsidiary firm which would develop this project. Assotech has infused Rs 76 crore for nearly 51 percent stake in the subsidiary. “We are entering into the Gurgaon market by launching a 12-acre housing project in partnership with Sun-Apollo. This is our first project to receive private equity investment,” Assotech Managing Director Sanjeev Srivastava told reporters.

The project, which is located on Dwarka Expressway, has been launched at a price of about Rs 5,000 per square feet. He said the company has bought the licensed land where it would develop about 580 apartments, 23 villas and 102 flats for economically weaker section. “The total investment in this project ‘Assotech Blith’ would be about Rs 500 crore including the land cost over a period of the next three years,” Srivastava said.

The investment would be met through equity contributions from both the partners, bank loans and advances from customers against sales, he added. Sun-Apollo Principal Alok Aggarwal said: “The two partners are committed to invest more if required for construction activities”. The private equity firm has also invested in real estate projects of Parsvnath Developers and Godrej Properties in north India. “We will do more projects with Assotech in future if there is good opportunity,” Aggarwal said.

Assotech is currently developing many housing and hotel projects in the National Capital Region (NCR), Uttar Pradesh, Odisha, Uttarakhand, Madhya Pradesh and Bihar.

JLL: Residential Realty Market is set to appreciate in 6 months.

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Jones Lang LaSalle India, a global research firm in the real estate sector, says that prices of residential units in India in the next six months should witness marginal appreciation. JLL says: “Over 60% of residential launches in the Top 7 cities (mostly in cities other than the NCR and Mumbai) are priced in the range of Rs 2,000-4, 000 per sq. ft., which meets the demand of middle-income buyers.”

At the same time, the RBI has given sufficient indications of probable cuts in key rates during second half of 2012, which will improve affordability for homebuyers and provide lower interest costs for developers. This will help in increasing the demand for residential units in the country. JLL also argues that even in the present bad condition, prevailing absorption rates are at nearly 10-12 %, which translate into an average absorption period of 8-10 quarters for a residential project. “This implies that at average prices, any average residential project should be sold out before construction is completed in around three years from the launch.”

JLL says that new project launches, which were slow in Mumbai and the NCR in the first half of 2011 due to approval and land acquisition issues, have now started to pick up. This should improve cash flows for developers having large land banks during 2012. A number of builders have acquired huge land banks on borrowed fund. As the builders pay huge interest rates, nearly 15-18 % on the borrowed fund, the servicing of debts has put huge strain on their finances. Any improvement in off-take is likely to release them from the financing pressure.

In the present slowdown condition, despite bad financial conditions, builders are not cutting the prices as in most parts of the country; they have priced their projects at nearly cost prices. “With rising input costs, developers do not want to sell below a threshold, which does not justify their minimum replacement returns,” JLL says. “This leaves home buyers with a small window of opportunity – the next six months – when home prices should witness marginal appreciation. After six months, a second wave of high appreciation is predicted.

However, in some of the micro markets in Mumbai and the NCR, the appreciation in prices was even sharper. In the last two years, in some of the markets like Gurgaon’s Dwarka Expressway, prices have almost doubled.

Overall, the Indian real estate market went through a slowdown in the last one year. But, all the predictions of a hard landing for the residential property market in 2011 and 2012 have failed to come true, so far.