DWARKA EXPRESSWAY: HIGHWAY TO PROSPERITY
This 18km-long expressway, after being declared a national highway, has started gaining a lot of prominence among buyersAREAS INCLUDED: Sectors 37C, 37D, 99, 99A, 101, 102, 103, 104, 105, 106, 107, 108, 109, 110, 110A, 111, 112, 113, 11 14, and 115
CURRENT STATUS OF THE CORRIDOR:
The Northern Peripheral Road (NPR), commonly known as Dwarka Expressway, is a 150-metrewide and 18km-long road which will connect Dwarka in Delhi with Kherki Dhaula on the National Highway 8 (NH-8) in Gurgaon.
The project was commissioned in 2007 and while most of the project (14km out of18 km) has been completed, it has not become operational as some key patches of the alignment are stuck in litigation.
The future of the corridor is linked to NPR becoming operational, as it presently lacks acceptable level of connectivity.
We present below the key points which summarise the present scenario with respect to NPR and also highlight the key challenges holding up the completion of the road.
Ministry for road transport, highways and shipping has recently announced the granting of National Highway status to NPR. As and when this actually happens, the land acquisition, construction and management of the road will be undertaken by the National Highways Authority of India (NHAI). This is expected to speed up clearance of pending hurdles. NHAI is now undertaking a Detailed Project Report (DPR) of the expressway. However, the timeline for the final notification and takeover by NHAI are not clear at present.
HUDA is planning to make 13.5km stretch of Dwarka Expressway operational soon. This stretch is free of litigation and most of the work has been completed. It will connect to NH-8 at Kherki Dhaula through an underpass or a flyover. This will provide much required connectivity between sectors and other areas of Gurgaon through NH-8, as well as the existing access roads.
The Haryana Urban Development Authority (HUDA) reached a settlement with residents in New Palam Vihar and Kheri Dhaula whose homes were to be acquired for implementation of the NPR. The litigation had been holding up road construction activity in Sector 110, towards Delhi and Kherki Dhaula, near NH-8. As part of the settlement plan, HUDA is to allot alternative plots to around 700 families in Sectors 37C and 110A. However, this process has not yet been completed due to difference of opinion between litigants and HUDA on various aspects of the land allotment plan. Consequently, construction activity on the incomplete stretches has not yet started.
The final 1.3km stretch of Dwarka Expressway which connects it to Delhi actually falls in Delhi and development here is the responsibility of the Delhi Development Authority (DDA). However, DDA has not yet acquired land for implementing this stretch of the road. No clear timelines are available on when this will be completed. Therefore, even if HUDA completes its part of the Dwarka Expressway, connectivity to Delhi might still not be available.
The railway over-bridge (ROB) on the Delhi-Rewari Line is yet to be completed. As the ROB ends towards Sector 99, a factory exists in the alignment of NPR. This factory is yet to be removed for work to be completed.
There are other flyovers planned at some critical junctions along the expressway, but their development timelines are not clear.
PRESENT RESIDENTIAL DEVELOPMENT:
Projects in the corridor are in various stages of construction with some having received part Occupation Certificate (OC). However, most of the projects are some time away from completion.HUDA is in the process of laying infrastructure in the corridor. This includes water distribution network, sewerage pipes, electricity and construction of various sector roads and completion of the Dwarka Expressway.
The real estate activity is at a low tide and new project launches have declined sharply as compared to the previous years. There is existing unsold inventory in the market along with options available in the resale segment.
The corridor offers options in apartments, high-end villas, and residential plots. The capital value is higher in sectors close to Delhi. Price in the re-sale market ranges from `4,000-9,000 per sq ft. The average price level in the re-sale market is `5,043 per sq ft.
Compared to the residential markets of Gurgaon, which are to the east of NH-8, the average price level is 30-40% lower.
Properties available in the corridor:
The corridor offers a wide variety of price ranges, although most of the apartments in the region are in the mid-segment. More than 50% of the supply is priced between `40 lakh and `1 crore. This supply is concentrated in the middle of the expressway. The supply costlier than `1 crore is mostly in sectors touching Delhi, and forms a significant 36% of the supply. A small portion of the supply, amounting to 10% of the total, is priced at less than `40 lakh, and is mostly in sectors at the far end of the corridor, in sectors like 99A, etc. The corridor is relatively new compared to the rest of Gurgaon market, and almost 80% of the supply here is still under construction. This is also partly because of the construction delays faced by the projects here over the last 2-3 years. Overall, the market is tilting heavily towards 3BHKs, which form more than 50% of the total supply, followed by 2BHKs, forming another 30%–4BHKs and above form another one eighth of the corridor’s supply, leaving just 5% for 1BHKs. The corridor provides a moderate range of choices for each bedroom configuration, with prices varying along the length of the corridor, dropping down as one moves west on it, and away from Dwarka’s Sector 21. While the range of flat sizes is large, the majority of configurations of 1-, 2-, 3-, and 4BHKs are around 610, 1,150, 1,870, and 2,800 sq ft respectively.
Sizes and prices of flats available for various room configurations:
BEST SECTORS TO INVEST IN A HOME
Based on rental demand in sectors:
The top sectors by demand are dispersed across the corridor, with Sector 37C, which commands nearly half of the demand for the corridor, being located on the farther end of the corridor from Delhi. The sector is closest to NH-8, among all the sectors on the corridor, and around 3km from Hero Honda Chowk. Sectors 112, 110A, 110, and 109 lie very close to Dwarka’s Sector 21, and benefit from proximity to Delhi, and Udyog Vihar. Sectors 103 and 108 are located in the middle of the corridor, and figure on the list bases the supply of residential apartments in these sectors. The yields vary, ranging between a low of 2.2% and a high of 3.8%.
Based on home-buying demand in sectors:
The home-buying tendency follows closely with the renting tendency on the corridor as all the localities which have high rental demand will give better returns to owners and hence more people will be looking to buy in these localities. Consequently, six out of the Top Ten localities, by consumer searches for buying a house, are in the Top Ten localities by con sumer searches for renting a house. Property prices available in the corridor are reasonable and provide potential return on investment.
BEST BEDROOM CONFIGURATIONS TO BUY
Preferred buying and renting options:
As most of the recent demand is driven by end use rather than investment, buyers are looking for bigger apartment types in the market suitable for living.
As a result, the dominant BHK type for both, buying and renting-in is the 3BHKs, followed by 2BHKs. Here, 53% demand distribution is for buying 3BHK units and demand distribution for renting-in is 57% in the corridor.
Noteworthy is the fact that the demand for 4BHKs and above is more than the demand for 1BHKs, a phenomenon rarely seen in the other geographies of the country, and reinforces the preference of bigger apartment sizes by buyers in this market here.
PRICE CHANGES AND FUTURE PROSPECTS
6 monthly change: -5% Yearly change: -7%
The average price of the Dwarka Expressway corridor has been falling for the last one year, mirroring the weakness in the overall Gurgaon market. The corridor has been witnessing fewer launches, and the sale transaction activity has been slow. Although the sales numbers were expected to pick up after resolution of the dispute for the land under Dwarka Expressway, this did not happen, and the prices have fallen by 5% over the last six months and by 7% over the last one year. However, we believe that prices have hit rock bottom, and will not fall drastically going forward.
PRICE MOVEMENT FOR TOP LOCALITIES BY CONSUMER PREFERENCE
Various localities in the corridor have given mixed price variations over the last quarter, with three of the two corridors witnessing a fall in the prices. Price changes have varied greatly, and there is no clear trend geographically. Hence, the price variations in the corridor are a result of seasonal trends, while having a downward pressure due to the weakness in the overall property market in the city of Gurgaon.
WHY SHOULD CONSUMERS REFER TO IT?
Investment Hotspot report gives a detailed description of forthcoming nodes of the city. The report details the current infrastructure status and future plans of the localities along the stretch. It details the type of properties available along with their configuration; current property prices and their future prospects. The report will help buyers choose the best sectors for investment.