Ample options for buyers at great prices
New Gurgaon is the upcoming residential hub along NH- 8 that for ms the southern side of Dwarka Expressway. The corridor is called New Gurgaon because it is seen as a lateral extension of Gurgaon. The influence of New Gurgaon extends to both sides of NH-8 on crossing the toll at Kherki Daula, with sectors 81-95 spearheading the upside in the coming five years.
What are the demand drivers in New Gurgaon?
New Gurgaon falls on the southern side of Dwarka Expressway, which will provide better connectivity and infrastructure once it is fully operational. Though delayed by litigations, Dwarka Expressway has now been cleared of all matters by the Punjab and Haryana High Court, and it will be fully delivered before the 2020 horizon. Once it is fully operational, commuters will be able to reach Kherki Daula from Dwarka in Delhi in just 20-30 minutes, after which they can commute seamlessly to the industrial hubs of Manesar and Dharuhera. However, the southern belt of the expressway or New Gurgaon (sectors 81-95) will pick up faster than the northern sectors (103-118). There are various reasons for the southern belt of the expressway to appreciate faster than the northern sectors. The alignment of the 1.8km Dwarka Link Road in the north, which will join Dwarka to the expressway and provide the critical direct connectivity, has only been cleared in 2014. The process will be delayed, since it involves land acquisition. On the other hand, New Gurgaon is located at a commutable distance of 30-40 minutes from the wellestablished commercial corridors of Sohna Road, DLF CyberCity and Golf Course Road through well-laid internal roads, NH- 8 and Golf Course Extension Road.
New Gurgaon is positioned to emerge as a relatively affordable residential catchment within Gurgaon. The area is set to attract homebuyers looking for good residential options within the city.
How would the drivers pan out on residential property prices in New Gurgaon?
Sohna Road, or NH- 248A, is a residential corridor in Gurgaon and has been considered as a benchmark location for New Gurgaon. This six-km corridor is a well-established market, a 20- minute drive away from New Gurgaon. Sohna Road bisects further from Badshahpur, from where it connects to the upcoming office and residential area of Golf Course Extension Road and the premium residential hub of Golf Course Road, which are within a driving distance of 30-40 minutes.
The corridor boasts wide roads and has also emerged as a well-developed retail and entertainment hub in the last few years. This infrastructure development, along with limited availability of vacant land, has pushed prices in Sohna Road to run in the range of ₹ 8,100 to ₹ 10,900 per sq ft. New Gurgaon is the nearest upcoming residential area to Sohna Road that has a mix of residential projects with properties ranging from the affordable and mid-segment to premium segment. With prices in the range of ₹ 3,900 to ₹ 5,500 per sq ft, depending on the type of project and its location and frontage on NH-8, New Gurgaon is set to attract homebuyers. At an average price of ₹ 4,700 per sq ft, residential property in the selected corridor trades at a discount of 51% from the ₹ 9,500 per sq ft price prevailing in the benchmark location.
With the completion of Dwarka Expressway within the investment horizon, the movement of the Kherki Daula toll, and the opening up of the Southern Peripheral Road from NH-8 towards Golf Course Extension Road, the report estimates this discount to narrow down from 51% to 42%. For New Gurgaon, this will translate into a price movement from the current ₹ 4,700 per sq ft to ₹ 6,900 per sq ft, during the next five years.
Mudassir Zaidi, national director- residential agency, Knight Frank India, says, “We anticipate that we are at the end of the cycle of slow down. The wave of positive sentiments is quite evident and the worst will be over soon. Delhi NCR as a market had far larger impact of slowdown due to the fact that a much larger proportion of pure investors are in the market who had deserted the same for want of better returns and thereby, considered alternative assets. The locations we have identified is anticipated to benefit from better connectivity and recovery of the market in tandem with the other markets of India and as a result emerged as potential destinations for investment. Golf Course Extension and New Gurgaon due to better connectivity to the wellestablished commercial corridors are expected to see an upsurge in demand due to completion of projects, social and physical infrastructure being established, coupled with incremental office space in the pipeline.”