Litigation issues hampering work on Expressway need to be resolved
The delay in completion of certain stretches of around 4 km along the Dwarka Expressway is the major dampener
The major dampener so far has been the delay in the completion of certain stretches of the Dwarka Expressway. As many as 500 families that will be displaced in the process had protested the construction and the litigation had delayed the project. The disputed sectors include New Palam Vihar sectors 100, 102 and 103. HUDA has offered alternative plots in sectors 110A and 37C to these families. It has already acquired 145 acres in the two sectors for the purpose. The matter is still pending in court.
Other challenges include physical infrastructure such as roads, power and sewage disposal facilities that are yet to be developed. Even if families move in by the end of this year they will not have the facilities required for their daily needs. Also, work on the rail overbridges is continuing.
Several experts are of the opinion that the area offers long-term investment options rather than short to mid-term.
As far as rentals are concerned, it will not be easy to find people who are ready to move in on rent even if the projects are delivered this year.
Compared to Dwarka Expressway, New Gurgaon is at an advantage strategically, located as it is at the intersection of NH8 and Dwarka Expressway. The area is also close to Manesar and will benefit from the Kundli-Manesar-Palwal (KMP) Expressway when it comes up. Other locations that are emerging as promising destinations include the Southern Periphery Road where properties are priced in the range of ` 6,000-`7,000 per sq ft as against the price levels of ` 4,500 per sq ft to ` 5,500 per sq ft some years ago. Several properties in Sohna Road will be ready for delivery in the next six to 12 months. Properties on Dwarka Expressway are currently selling at ` 5,500 per sq ft to ` 10,000 per sq ft. House hunters thoroughly exploring the resale market will easily find something in the range of ` 5,000 per sq ft to ` 5,300 per sq ft.
Also, the DDA approving the new land pooling policy that allows private players to acquire land directly from farmers and develop these land parcels within the geographical limits of Delhi may not be good news for those investing along this stretch. MPD 2021 has envisioned development of about 20,000 to 24,000 hectares of land for the expected increase in population by over 60 lakh. Zones have been identified for development of five new sub-cities and a rat race to acquire these newly opened up land parcels has already begun. This change in policy by DDA is set to add about eight to 10 lakh new residential units in the next decade or so and this increase in inventory will have a stabilising effect on the prices in NCR. Hence, availability of investment-worthy options within Delhi could lead to a huge oversupply situation which would hurt both the end user and the investor community.
It may appear lucrative on paper, but the expressway story is still seven to 10 years in the making, unless the government expedites on infrastructural development which currently is at a nascent stage and the lack of any commercial developments and public utilities further complicates the situation.
Other challenges in the area include providing adequate power, sewage and disposal facilities before people settle in the area