The most preferred suburb

By Vasu

Chances are that very few people inhabiting Gurgaon,the Haryanvi suburb of Delhi, will name it while citing their address. The elite of Delhi will have you know that they live in South City or Heritage houses or DLF or Garden Estate or any expensive-sounding, aesthetically designed apartment cities which this once simple abode has been converted to.

Gurgaon, like suburbs elsewhere, was the direct result of the phenomenal escalation of property prices in Delhi, says big-time builder and realtor Vikram Chopra. A bare seven to eight years ago, the person who was buying land there was either someone with the knack of picking up property at the right time or someone for whom a similar house in Delhi was out of reach. However, over the years it has become a posh address to have. Even today, Delhiites normally pick up houses in the colonies developed by big builders like Unitech, DLF and Ansals, giving the normal sectors the go-by. In fact some of the best areas like Sector 17, rival the builder townships, says Vikram. The going rate for plots here is around Rs 8000 per sq. yard. In Phase 3 of DLF, the rates had peaked at Rs16,000 per sq. yard, and currently they are around Rs 10,000 per sq. yard. On the main sector roads, prime locations are priced higher between Rs 13,000 and Rs 14,000 per sq. yard. Phase 1 and 2 of DLF had peaked to Rs 18,000 and are currently priced between Rs 11,000 and Rs 12,000. The best locales here are priced around Rs 14,000, says Chopra.

The pick of the commercial position in a sea of designer shopping establishments is the Sector 14 market here, says Alok Modi of the Modi Group and the owner of Pizza Pizza Express who is negotiating for a prime location to house his outfit here. Eateries like Nirulas are already doing roaring business here. Bankers like HDFC, clothiers like MEX and Opel are the others who have opted for the location which is at the moment the most happening place in Gurgaon.

The reason why people prefer to pay extra to builder colonies is that the major players have ensured top of the line maintenance and service, even years after sales. Bobby Bhagat, who owns three Heritage flats in South City, says that the slightest problem is attended to by the site office and the group has provided excellent security. The flats, originally offered for around Rs 5 lakh in 1993, have appreciated to around Rs 17 lakh today, he adds.

Commercial and residential property aside, the sought-after industrial locale around Delhi is the Udyog Vihar which is a bare seven-minute drive from the Indira Gandhi International Airport and houses multinationals like Coca Cola. The area, which perhaps houses the best designed and maintained industrial buildings, has fallen prey to mismanagement by the Haryana State Industrial Development Corporation (HSIDC), says Chopra. Udyog Vihar, the most prestigious industrial address in the National Capital Region is better than Okhla or Faridabad and is positioned right on the National Highway, a mere 10-km drive from South Delhi, say brokers. Before the present government came to power, the land rates here were booming. Depression and stringent policies wiped out the market, say brokers. Ban on transfers has also resulted in the fall in prices, they feel.

A majority of owners had picked up plots on the power of attorney and a complicated transfer policy, says Chopra. Applications for change of usage have been pending for over two years, says a businessman who did not wish to be named. "My factory which was allotted for an electronics unit has been changed into a garment fabrication unit, yet I have been unable to get the simple change registered in the HSIDC offices,’ he rues.

Rules like resumption of plot in case the construction has not been done are welcomed by industrialists as this results in rapid development, but rules which prohibit renting out of plots actually hamper the growth of the region, feel brokers. The actual potential of the region is under utilised, they add. A slight devaluation apart, Gurgaon has become the destination for all major corporates.

A study conducted by an international real estate consultant, Cushman Wakefield, has revealed that in terms of value, transactions in Gurgaon made up for nearly 21 per cent of the total commercial deals which took place in Delhi and Gurgaon during the second quarter of this year. In Gurgaon alone, commercial transactions accounted for only 9 per cent of the total transactions. The most favoured buildings in Gurgaon continue to be DLF corporate park, DLF Plaza Towers and the Signature Towers. The suburb has also emerged as the single largest preferred residential suburb with over 50 registered residential transactions during this period.