Areas like Manesar, Dharuhera, Bhiwadi and Neemrana provide good connectivity and also serve as corridors of growth
The 250-kilometre stretch between Delhi and Jaipur has become a hotbed for real estate development, with areas l i ke Manesar, Dharuhera, Bhiwadi, Neemrana, Kotputli and Alwar becoming attractive investment destinations.
Highways connecting various towns and cities serve a dual purpose. Not only do they provide good connectivity and accessibility, but they also serve as nodes that spur development. Typically, the portions of the highways with cities lying on these routes witness hectic development activity right from the time the projects are first announced. The NH-8 connecting Delhi to Jaipur has seen a similar growth trajectory.
Gurgaon, being closer to Delhi, has seen rapid growth in real estate development. The residential real estate sector has seen exponential growth along NH-8, with residential projects underway on the upcoming Dwarka-Gurgaon Expressway which runs nearly parallel to NH-8, meeting it near Sector 82.
Prominent township projects are coming up on NH-8 beyond the second toll plaza. The major developers active there include Vatika ( Vatika City Next), DLF (Garden City) and Orris Infrastructure.
Manesar, Dharuhera and Bhiwadi are the satellite cities of Gurgaon and have a t hriving i ndustrial sector. Manesar also has commercial developments and residential projects by ABW, DLF, SARE and Sidharatha, which have seen good demand on account of their affordability quotient. Dharuhera has developers like Parsvnath, Vipul, Bestech, Vardhman, M2K, Fer rous Infrastructure and Dwarkadhis, among others.
Developers l i ke Omaxe, Ashiana Group, BDI, Star R a i s o n L a n d m a rk , M V L , Cosmos Infra, Avalon, Krish i nfrastructure and Piyush Group, to name a few, are coming up with projects in Bhiwadi.
Neemrana has attracted heavy industrial investment from Japanese manufacturing firms. Currently, a 1,200acre Japanese zone is 70% operational, with heavy investment in manufacturing facilities by firms such as Daikin, Mitsui Chemicals, ls, Nissan, Nippon and NYK YK Logistics. The Japan External al Trade Organisation and the h Export Promotion Industrial Park, spread over 3,500 acres, developed by the Rajasthan State Industrial Development and Investment Corporation (RIICO) in several phases, are other industrial zones that have led to this sub-market’s emergence as a major industrial hub. Some residential projects by Ashiana, Eldeco and Anant Raj have already been launched. This sub-market has tremendous potential for integrated township projects and low-cost, affordable housing.
Kotputli in Rajasthan has developments by Eklavya Housing and is largely defined by plotted development projects by a host of small, individual developers. There are a number of developments on the outskirts of Alwar, especially on the Bhiwadi-Alwar Bypass and outskirts of the city.
Ansals are undertaking a residential project, while other projects are by small, individual developers.
Physical infrastructure com-comprisesi off roads,d power, sewage, sanitation and water supply while social infrastructure refers to schools, colleges, malls, entertainment avenues among others. Currently, Gurgaon has inadequate infrastructure in respect of proper roads, regular power and water supply and city sewage disposal mechanism. In the light of this, other cities will need to make infrastructure development a priority and ensure that capacity-building takes place in a proactive and progressive manner, keeping in mind the expected demand over the next 10-15 years. However, since all infrastructure projects have long gestation and operation periods, a time period of 10 to 15 years can be easily taken as reference.
Though the internal road infrastructure is developing fairly rapidly in Gurgaon and Manesar, other towns are yet to catch up. Most locations closer to these cities’ centres will have provisions of basic amenities. However, since development work is still being carried out here, amenitiesi i are yet to becomeb fully functional. Towns like Bhiwadi and Neemrana are likely to see faster growth as in the former case.
Prices are a function of demand and supply, and currently are at an all-time high in Gurgaon. With infrastructure development lagging in the emerging residential corridors, prices are operating on speculation of future appreciation and investor sentiment. Manesar, by virtue of its locational advantages, has also seen healthy appreciation in residential projects located there. It is a well-established industrial town and is slowly emerging as an office destination. Since it is considered a part of Gurgaon, there have been significant price increments in housing projects located here. Prices in Dharuhera and Bhiwadi, which largely cater to affordable housing in terms of amenities, have remained more or less stable, showing only range-bound growthh iin projectsj nearingi completion. Neemrana has shown appreciable increment in land values and apartment prices since the Master Plan-2031 was notified.
Land values differ based on the expected pricing for residential projects and the projected demand for projects in each location. While in Gurgaon the land values are ` 2500 to ` 3000 per sq ft in the locations on NH-8 which are closer to the second toll plaza, Manesar has land values in the range of ` 2200 to ` 2400 per sq ft. Dharuhera’s land pricing is ` 1100 to ` 1400 per sq ft while Bhiwadi is ` 800 to ` 1000 per sq ft. Neemrana’s land prices are in the range of ` 800 to ` 900 per sq ft, while land value range in Kotputli is ` 350 to ` 500 per sq ft with Alwar’s land values between ` 500 and ` 600 per sq ft.
Land values are currently at a premium in Gurgaon, and hence are adding to the project costs off developers;d l whichhi h i in turn is leading to developers pricing their projects higher to service their debt as well as earn a certain profit margin. Similarly, with land prices rising across all the towns on the NH- 8 corridor, project costs are rising. This impacts the profit margin of developers, or impacts sales if project pricing is higher than what could be considered competitive.
There is a definite opportunity in the affordable and midincome housing segments for developers in these areas, as a majority of the demand is directed towards these seg-
The author is senior manager – research and real estate intell i gence service, Jones Lang LaSalle India