Affordable hope on ‘delay’ expressway

Geetu Vaid

A very predictable and common chapter of the real estate story in Indian market usually involves  areas that hit the headlines as potential gold mines and then fail to come up to the expectations of the investors and builders. The area along Dwarka Expressway can be seen as a fitting example of this. With litigations, delayed execution of the expressway, scores of projects in limbo and investors and end users losing sleep over the fate of their investments, this is one pocket in the NCR that has been giving jitters to thousands over the past three years.  According to available data over 70,000 buyers have invested over Rs 60,000 crore in around 130 odd residential projects launched here.

The fate of this colossal  investment is closely linked to the completion of the ambitious Dwarka Expressway that was supposed to bring ‘real’ prosperity to this area.  Dwarka Expressway is a high-speed 18-km-long and 150 metres wide link road, officially known as Northern Peripheral Road   that stretches from Kherki Daula on NH8 to Dwarka. Being the lifeline of areas along the way, this expressway became a magnate for realtors who launched several residential and commercial projects along it. However, delay in the completion of the expressway due to land acquisition issues coupled with an overall slowdown burst the initial euphoric bubble that this area had built up. The prices in the area have seen a drop of 10 per cent between 2013 and 2015 falling from Rs 6,100 to 5,500. But hope has resurfaced in 2016 with the grant of NH status to the expressway that would come under the purview of the NHAI now. On ground this will mean quicker acqusition and faster execution.

Sectors 81 to 115 have been developed along this stretch. Development in accordance with the   Gurgaon-Manesar Masterplan 2031, wide sector roads and presence of educational as well as commercial establishments are among the key market drivers for this area. A huge inventory of affordable units is, however, the biggest plus of this area. 

According to market watchers with over 1,00,000 flats coming up here this micromarket of NCR will emerge as a major affordable housing option as currently the prices are low here. Narasimha Jayakumar, Chief Business officer, 99acres.com says, “Dwarka Expressway, owes its relative affordability to its under developed status and perpetual delays in the completion of the stretch”. 

Though there are luxury, premium projects also here but most of the builders are providing a mix of affordable and premium units  in their projects. Emaar MGF Gurgaon Greens, M3M, Woodshire,  Ansal Heights, BPTP Spacio, Raheja Navodaya are some of the affordable options that people can consider near Dwarka Expressway.

Currently the capital values of residential apartments in Dwarka Expressway range between Rs 5,000 and 8,000 per sq ft,. “Builder floors carry an average price tag of Rs 5,000 per sq ft. However, subdued market sentiments make negotiations possible even on this price bracket”, says Jayakumar.

However, delay in completion of the ongoing projects is a major concern for buyers and something that is harming the potential of this area. “Possession of numerous projects are overdue, as a result of the delay in completion of Dwarka Expressway. Although, a few projects have offered possession, poor road connectivity and commutation issues discourage homebuyers from shifting to the sub-city, keeping occupancy levels low”, says Jayakumar while emphasising that these rough patches have to be smoothened out before  a bright future can be predicted for this micromarket.

Meanwhile, several developers are now completing the projects fast in order to match the completion of their projects with the completion of the expressway. “Most of the developers in this area are likely to complete of their projects with the completion of the expressway. It is a best time for end-user to invest here”, says Kunal Rishi, VP- Corporate &  Projects of Paras Buildtech. The gruop has an upcoming project in  Sector 106.

With the slowdown still persisting in the NCR market, it may be a bit pre-mature to say that Dwarka Expressway is back on the road to becoming a “golden” real estate destination, yet it certainly is an attractive option for those looking for affordable housing.