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An Emerging Destination Of Residential Real Estate: Dwarka Expressway

Discussion in 'Gurgaon, Faridabad Real Estate' started by adarsh singh, May 21, 2019.

  1. adarsh singh Member

    Introduction

    “Growth of any country depends on its infrastructure size and quality”



    Realty developments along Dwarka Expressway have emerged as one of the most sought-after asset classes in the NCR. Commissioned in the year 2007, the Dwarka Expressway (Northern Peripheral Road) is an 18-km stretch of road that will connect Dwarka Phase II and Palam Vihar to National Highway 8 near Kherki Dhaula and pass Pataudi Road. The expressway is an eight-lane 150-metre wide motorway that will considerably decongest the current traffic flow along the Delhi-Gurgaon Expressway. Touted as one of the most highly lucrative projects taken up by the Haryana Urban Development Authority (HUDA), it is scheduled to be complete by 2017-18.

    Factors that catalyzes the realty growth along the expressway is:

    · Reduced distance and travel time between Gurgaon and the Indira Gandhi International Airport in Delhi.
    · The expressway will ease traffic congestion along with opening up new residential space for both end-users and investors.
    · Withdrawal of the toll on travel between Gurgaon and Delhi will be a big positive for daily commuters from Delhi who are stuck at NH-8 toll plaza.
    · Increased land values due to proximity to Delhi Aerocity and the upcoming Diplomatic Enclave hosting residences of Diplomats in line with Chanakyapuri.
    · The expressway will have a good mix of residential, commercial and industrial sectors ensuring robust social and physical infrastructure.

    The Expressway passes through sectors 109, 113, 37D, 88B, 105, 99 and many other sectors, which saw an upsurge in residential real estate activity since its announcement.

    PropTOQ Realty Index - Dwarka Expressway
    In the last five years, Dwarka Expressway has seen a fresh supply of over 29,100 units. More than 80 per cent of the supply was added during the period 2013-15.
    Various litigation issues created a slump in this region and new supply saw a major decline. In 2016, Dwarka Expressway saw the highest decline in new launches of more than 50 per cent, from 2015.


    Supply Along Dwarka Expressway
    A total of about 40,000 units were launched between 2008 and 2015.

    Maximum supply was skewed towards Gurgaon side (55 per cent), followed by central stretch (32 per cent) and Delhi side (13 per cent) of the expressway. This can be attributed to the fact that the first stretch is already constructed.

    In Stretch 1 (Gurgaon side), maximum supply was skewed towards Sector 103 (32 per cent), closely followed by Sector 104 (27 per cent) and 102 (22 per cent). All the three sectors are primarily residential and has projects by realty majors such as Emaar MGF Land Limited, BPTP Limited, Indiabulls Real Estate Ltd, to name a few.

    It is interesting to note that these three sectors (102, 103 and 104) along the Gurgaon side of the expressway still tops the ladder in terms of supply. (As per 2013-2014 data)

    In Central stretch of the expressway, Sector 107 is the showstopper with 29 per cent, followed by Sector 108 and 109 with 25 and 23 per cent respectively.

    Analysing the supply data of last two years, Sector 107 and 109 have still clocked first two slots; however, Sector 105 secured the third slot
    The new supply in 2017 was also restricted to a mere 2,500 units, a decline of more than 30 per cent since 2016. The decline in new launches from 2016, was the cumulative effect of delays in land acquisition along the Expressway, demonetisation, RERA and GST, coupled with weak consumer sentiments in the NCR.
    Current Trends
    Currently there are 40 Developers in this locality offering 53 marketable residential projects till date. Where as talking about quarterly supply and sales unit, in quarter 3’ 18-19 new residential supply- 1747 out of which 998 units are sold. Today there are about 6943 homes option are available for the homebuyers and investors.
    In Quarter 3’ 18-19, only 3 new residential projects are launched:
    · Hero Homes by Hero Group.
    · Joy Ville by Shapoorji Pallonji
    · Kavyam Homes by Agrante Realty
    In last 1 year about 27% of 2 BHKs and 41% of 3 BHKs are sold. Maximum number of properties sold here ranges between Rs.1- 1.25 Cr.

    Price Trends
    Due to several roadblocks, supply along the expressway has decreased. However, the prices are appreciating at consistent pace. As per CommonFloor data, in June 2014, the average price for apartments stood at Rs.5915 per sq. ft., which have risen to Rs.6200 in June 2015, clearly indicating an appreciation of 5 per cent.


    Current Price Trends
    The price ranges between Rs.3500 – Rs.15000 per square feet, however the average price in market is Rs.6243 per square feet.


    Conclusion
    · CommonFloor research indicates that nearly 96 per cent of the total supply in the market along Dwarka Expressway comprises of multi-storey apartments.
    · A total of about 40,000 units were launched between 2008 and 2015.
    · Prices of standard 2 and 3BHK units are almost at par in Gurgaon side and central stretch.
    · However, towards Delhi, prices are little towards higher side. For instance, average price for a standard 2BHK unit in the first stretch is Rs.5545 per sq. ft., while in the last stretch; the average price is Rs.7720 per sq. ft. This is due to the proximity to Delhi.

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