The New Gurugram
With the millennium city of Gurugram getting out of reach of young aspirational homebuyers and start-up companies, the satellite micro market of Golf Course Extension Road is emerging as the New Gurugram. Shubhra Saini analysis growth prospects of this promising realty corridor.
The high property prices, rents and infrastructure vows are driving the aspirational middle income group to seek luxury lifestyle projects in the extended suburbs of Gurugram that have developed social infrastructure of retail, commercial and residential properties.
New Gurugram(sectors 78–90)encompasses the areas beyond the second toll plaza on NH-8, which are located on the highway on either side of it. Golf Course Extension Road starts from Sector 55 and links up to Sector 66, finally reaching Sohna Road. New sectors along this stretch include Sector 61, 62, 65, 66 and 67 while old sectors comprise Sector 55, 56, 57, 49 and 50.
The New Gurugram&Golf Course Extension Road have emerged as the top residential destinations with expectations of 47 per cent and 42 per cent price appreciation by 2020 respectively. No wonder, these newer, extended areas in Gurugram will redefine the real estate market in the region.
What makes them a prime residential location in the Gurgaon market?
The Golf Course Extension Road is not priced as high as the neighboring Golf Course Road or other prime localities of Gurugram but still offers multiple apartment options for the high and middle income segment. Its excellent connectivity emerging commercial hub of Sohna-Gurgaon Road and National Highway-8is another factor in its popularity with potential buyers.
This corridor is also emerging as an attractive office market as well due to favourable pricing and locational advantage. With extension of Rapid Metro till Sector 56 and work on Southern Peripheral Road (SPR) nearing completion, there has been an increase in absorption of existing office spaces and many new commercial and mixed-use projects have been launched.
The investor-friendly market of New Gurugram is touted as the next most desired hub when it comes to high-end living. There is a large supply of residential properties for mid-high income as well as commercial and office spaces.
The Edge over Gurugram
The fast depleting groundwater table, high levels of pollution, rising demand for electricity, growing dependence on personal vehicles, poor waste management and enormous pressure on forests are among the issues confronting Gurugram. The New Gurgaon is set to factor in the growing requirements of Gurugram by offering affordable residential and commercial property and supporting infrastructural development.
Accessibility and connectivity to major nearby hubs and infrastructural projects has given an edge to this region over the establisgeGurugram hub.Upcoming infrastructural projects such as the DMIC, KMP Expressway, Dwarka Expressway, internal arterial roads and development of multiple centres of excellence as planed under the DMIC provide an impetus to the economic activity in this area driving its real estate growth. Additionally, the Rapid Metro Phase II route runs along the entire Golf Course Extension Road thereby improving the connection with main Gurgaon and other areas of the Delhi-NCR.
The affordable price range with presence of multiple range of residential accommodation within commutable distance to business districts is another major factor for the young couples to look at New Gurugram and Golf Course Extension Road rather than Gurugram itself.
Market Trends in the Region
As per the developers operating in the area, this stretch has carved a niche for itself in a very short period. There is a buyer’s demand in all segments from apartments, townships, villas and plotted developments. The area boasts of a strong retail presence such as M3M Tee Point, Golden Arcade, ElanTowncentre, AIPL Joystreet, Emerald Plaza by Emaar, M3M 65th Avenue, SpazePalazo, to name a few. Also, most of the projects in the belt are either completed or near completion thus, investors can start earning returns or rentals immediately.
There are already large township projects in New Gurgaon by the likes of DLF, Vatika, Orris, Lotus Greens, Supertech and Ramprastha, among others. There is also an ample demand for rental properties due to the corporate office spaces located nearby.
Currently, prices on Golf Course Extension Road are in the range of INR 9,000 – INR 11,500 per sq. ft. for premium and high-end luxury projects.
Furthermore, developers like IREO and Ascendasare developing IT SEZ space on Golf Course Extension Road on the southern edge of the city as there is a growing realization Gurugram needing another big office district. According to experts, this new move will change the development axis in the region and also improve end-user attraction for housing in and around the Golf Course Extension Road and New Gurugram area.
The Future Prospects
Golf Course Extension Road promises a greatreturn on investment, improvement in the connectivity and infrastructure will play a crucial role in sustaining the real estate growth in this micro-market. Talking about the future trend of this realty corridor, Rajat Gupta, MD, Advisory & Transaction Services, India, CBRE South Asia Pvt. Ltd,said, “Golf Course Extension Road is an emerging location for real estate development in Gurugram. The micro-market currently houses a significant share of the city’s upcoming commercial supply and is perceived as a premium business destination for corporates. Several residential developments are also in different stages of construction here. In addition, the completion of various underpasses has further improved both inter and intra city connectivity. As the micro-market continues to develop, we are witnessing increased interest from corporates of various sectors including engineering and manufacturing, BFSI and tech corporates who are considering this market to set up their offices.”
Given the major infrastructural development around Gurugram, it is expected that the demand inGurugram would be concentrated to luxury and high-end segments and growth areas for investors & end users for lucrative returns on investmentwould include New Gurugram and Golf Course Extension Road.All-in-all, the region seems to have a good future, while there may be some teething troubles under the current changing market conditions, say property consultants.