Af­ter RERA’s im­ple­men­ta­tion in Gu­ru­gram, a higher de­gree of trans­parency will pre­vail

HT Estates - - NEWS - Anuj Puri let­ters@hin­dus­tan­times.com Anuj Puri is chair­man, JLLR (JLL Res­i­den­tial)

NEWDELHI: The sub­urb of Gu­ru­gram has been an es­sen­tial con­trib­u­tor to the ur­ban sprawl that com­prises of prime Delhi NCR. The re­gion has be­come syn­ony­mous with a vi­ral-like growth in the past decade and has as­sumed a ho­mo­ge­neous na­ture be­ing a well-es­tab­lished busi­ness, hous­ing and leisure hub.

The new res­i­den­tial growth com­pris­ing of mul­ti­sto­ried apart­ments ini­tially started along its ma­jor ar­te­rial roads of MG Road, Golf Course Road and later spread down along the main high­way con­nect­ing it to Delhi–NH-8. Fur­ther along the way as the city started to grow its wings, newer ar­eas were opened up along the Golf Course Ex­ten­sion Road and newer sec­tors opened up along the pro­posed Dwarka-Gur­gaon Ex­press­way and both sides of the NH- 8, beyond the sec­ond toll plaza.

Each of th­ese res­i­den­tial precincts has their own set of spec­i­fi­ca­tions, price points and tar­get seg­ments. Gu­ru­gram boasts of one of the high­est white-col­lar work­forces and with its ho­mo­ge­neous in­dus­try mix, it caters to all cat­e­gories of home buy­ers – from af­ford­able to ul­tra-lux­ury.

The city now has its own de­fault CBD com­pris­ing DLF Cy­bercity and­primeroad­sofMG Road and Golf Course Road. Un­sur­pris­ingly, the most well­con­nected parts of the city an­dits most cen­tral ar­eas have the high­est cap­i­tal val­ues and most of the lux­ury prop­er­ties in town.

Neigh­bour­ing precincts like the Golf Course Ex­ten­sion Road and parts of Sohna Road have also ben­e­fit­ted from their prox- im­ity to city’s prime ar­eas and havea­good­mixofmid, pre­mium and high-end hous­ing.

The new­est res­i­den­tial cor­ri­dors of New Gu­ru­gram (sec­tors on both sides of NH-8, beyond the toll plaza at Kherki Daula) and Dwarka-Gur­gaon Ex­press­way have been its high­est con­trib­u­tors to sup­ply and sales in the pre­vi­ous few years.

The res­i­den­tial mar­ket of Gur­gaon has largely been quite sup­ply-con­trolled and that has re­sulted in man­age­able un­sold in­ven­tory lev­els here.

Price growth has been ro­bust af­ter the troughs of 2009 and the mar­ket has seen his­toric peaks be­ing reached by the end of 2016. In­vest­ment ac­tiv­ity was strong in the in­terim pe­riod and Gur­gaon recorded the high­est growth ris­ing by nearly 95% from its his­toric lows.

The last two years have been tough for the res­i­den­tial sec­tor and Gu­ru­gram’s mar­ket was also not un­touched. Run­away prices had priced out buy­ers in the ₹45-75 lakhs cat­e­gory which is typ­i­cally the sweet spot for a ma­jor­ity of the home­buy­ers. The pe­riph­eral res­i­den­tial mar­ket of Sohna came slightly to the res­cue with its low floor prices and be­ing the hub of af­ford­able hous­ing projects.

Over the past two years, we have seen prices re­main stag­nant with some level of mi­nor ra­tio­nal­i­sa­tion in prices vis­i­ble as well. The dis­counts in the pri­mary res­i­den­tial mar­ket have been sus­tained and have ranged from 8%-15%, de­pend­ing on the de­vel­op­ers and project’s trac­tion. They, how­ever, do not rep­re­sent a mar­ket-wide trend, where the dis­counts from well­known play­ers with a good track record have­been­lowerand­sim­i­lar to ear­lier on-spot dis­counts as per the usual mar­ket prac­tice. Stag­nant prices and on-spot dis­counts have trans­lated to slightly lower prices for buy­ers.

The pe­riod start­ing from 2013 on­wards was al­ready show­ing signs of mod­er­at­ing sup­ply as de­vel­op­ers looked to sell off ex­ist­ing stock even as spec­u­la­tive ac­tiv­ity was show­ing early signs of cool­ing off. The lat­ter half of this pe­riod was also un­der­pinned by a lack­lus­ter spec­u­la­tive mar­ket and some de­gree of stress in the sec­ondary mar­ket which also had a sober­ing ef­fect on prices in Gur­gaon’s res­i­den­tial mar­ket.

FU­TURE PROSPECTS

The lo­ca­tions of Golf Course Road, Golf Course Ex­ten­sion Road and parts of Sohna Road, will serve as great des­ti­na­tions for home­buy­ers look­ing for ready as well as close-to-com­ple­tion in­ven­tory with in­fra­struc­ture im­prov­ing rapidly.

The area des­ig­nated as New Gu­ru­gram, with sec­tors un­der devel­op­ment along the up­com­ing Dwarka-Gur­gaon Ex­press­way and mov­ing to­wards Mane­sar will be ahub­formid-seg­ment and rel­a­tively af­ford­able res­i­den­tial devel­op­ments. Off late, how­ever, with the com­ple­tion of the Ex­press­way still stuck, new buy­ers may have the op­portu- nity for bar­gain buys.

Fur­ther down, to­wards the NH-8, the com­par­a­tively low prices, a var­ied range of unit sizes and the abil­ity to com­plete on time will help the projects here.

The de­mon­eti­sa­tion an­nounce­donNovem­ber8, how­ever, put a slight span­ner in the works as many airy state­ments on price cuts caused a sense of con­fu­sion and prop­a­gated a wait-and-watch pol­icy for many buy­ers. While there was a ta­per­ing down of prices in the stressed sec­tions of the sec­ondary mar­ket pop­u­lated by short-term spec­u­la­tors who were look­ing to make quick re­turns, the pri­mary mar­ket did not wit­ness the an­tic­i­pated price fall. That said, there was a de­cline in trans­ac­tion ac­tiv­ity as the econ­omy and peo­ple came to terms with the de­mon­eti­sa­tion drive’s im­pact, as was vis­i­ble from low deal-flow be­ing re­ported from sec­tions of the res­i­den­tial mar­ket.

With RERA im­ple­men­ta­tion in Gu­ru­gram, a higher de­gree of trans­parency will pre­vail. In this im­me­di­ate post-RERA pe­riod, short-term sup­ply con­straints are also likely as de­vel­op­ers re­cal­i­brate their op­er­a­tions to be­come RERA-com­pli­ant. With an in­creased fo­cus on project de­liv­er­ies by de­vel­op­ers and slug­gish­ness in buy­ing de­ci­sion­mak­ing likely to keep prices slightly flat in the short-term, this re­mains as good a time as anyto make­in­formed­pur­chases with proper dili­gence and re­search be­ing the cor­ner­stones for the de­ci­sion. Gu­ru­gram with its over­all vi­brant feel and growth re­mains a buy for all cat­e­gories of buy­ers.

HT/FILE

Cy­ber City in Gu­ru­gram

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