Dwarka Expressway

Dwarka Expressway India’s first access controlled urban expressway which going to be the backbone of development in this region of Gurgaon and leads to exceptional growth in the sector alongside. Certain drivers are deciding factors that how good will be the real estate investment in a particular area? Like future development plans, current development and their momentum, social activities, commercial activities, and legal scenario, etc. Story of Dwarka Expressway is full of such drivers which are leading to great returns in Real estate investment here.

Sector besides Dwarka Expressway getting seamless connectivity to Delhi, also two state highways are providing an added advantage to them. At the same time these sectors are well connected and in proximity to Indian railways, proposed metro, and old Gurgaon. This Expressway will be the part of Delhi-Varodra-Mumbai Expressway through Sohna Road, Southern peripheral road, and the central peripheral road which are already in advance stage of construction. Gurgaon railway station is going to be shifted at Sector 88A near to Pataudi Road which reduces traffic in old Gurgaon and adds value to in the development of these sectors.

Dwarka expressway passes through sectors 109, 113, 37D, 88B, 105, 99 and many more which saw an upsurge in residential real estate activity since its announcement. But, with land acquisition issues over the years, the residential real estate suffered a major setback along the region. However, the recent clearance of all hurdles here has given a new ray of hope to prospective buyers and investors alike.

For the sake of understanding we can divide this expressway into two portions one from Sector 113 to 102 and other from 102 to Sector 83 of Gurgaon the later one we called as new Gurgaon which is already in advance stage of development and large no of families are living here. The first part has immense potential as this portion is a natural choice for investors from Delhi. Also some big brands in real estate are developing this area like Sobha, Puri Constructions, ATS, Chintels, Indiabulls Real Estate, Mahindra lifespaces, Godrej Properties and Shapoorji Pallonji Real estate, etc. A large portion of these sectors is allocated for commercial and institutional activities which will create a huge rental market to properties in these sectors and commercial complexes.

Biggies of this portion of Dwarka Expressway are making luxurious properties like Sobha is developing a self-sustained city naming Sobha International City in sector 109, ATS is developing Two luxurious projects in Sector 109 named ATS Kocoon and ATS tourmaline, Chintels has developed Two projects Chintels Paradiso and Chintels Serenity, Shapoorji launched Joyville in sector 102 and Emaar has two ready to move projects in Sector 102, Emaar Gurgaon Greens and Emaar Imperial Gardens, Godrej has its presence in Sector 106 and 104. Similarly Puri Construction has delivered two projects in sector 111 and Sector 104 near to Hero Homes.

Now if we analyze the residential market in this region in the last few years returns and inventory wise it is quite satisfactory considering the overall real estate market trends.

In the past five years, this region has seen a new supply of over 29000 units and most of them were launched in the period of 2013 to 2015

  • However various litigation and land acquisition issues create a slump in the supply of new inventory and the region saw a major fall of supply.
  • In 2016, Dwarka Expressway saw the highest decline in new launches of more than 50% of 2015
  • 2017 new launch was restricted to just 2200 units which were again 30% of 2016 which has many reasons like RERA, GST and demonetization.
  • 2018 onwards most of the hurdles start clearing and newly launched begins
New launch trends

New launch property trends at Dwarka Expressway region year on year

Now if we see the age of current inventory will see a very interesting picture

  • Out of the total supply launched since 2013, the expressway currently has just 7% (around 2,000 units) ready-to-move-in units. The land acquisition issues along the expressway hampered its development which in turn negatively affected the residential growth in the region. Several projects have been delayed over the years.
  • Approximately 29% (8,500 units) of the total supply is expected to complete within a year, whereas a significant share, 37% (10,800 units) is likely to complete in 1- 2 years. This suggests that many housing units will enter the market within two years.
  • Furthermore, the total unsold inventory is close to 13,300 units of which a large share (98%) is still under construction phase.
Age of Residential Inventory

Age of Residential inventory at Dwarka Expressway

 

Analysis of pricing trends is quite satisfactory

  • The average property prices in Dwarka Expressway have constantly increased over the past three years. The average price as of Q1 2018 is Rs. 5,200 per sq. ft., which is 7% more than Q1 2016 and 12% higher than Q1 2015.
  • Thus, despite the slowdown witnessed in major markets in NCR, Dwarka Expressway saw a steady rise in capital values at a CAGR of ~4% for the period of Q1 2015 – Q1 2018.

 

Overall outlook in this region is pleasant and fully operational Dwarka Expressway will be a herald to unprecedented returns in a span of ten years. After clearance of all the hurdles it would be completed in the next one year of time and those who have already invested here will certainly get Rs.2000/sq ft price hike in their properties. The commercial and office space market in this area will attract many MNCs as other portions of Gurgaon are already saturated. Comparatively less availability of ready to move unit will also lead to price escalation and demand. Under construction projects are coming up with the latest features which again leads to a premium segment of customers.

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