Corridor of growth Corridor Description and Rating Areas Included: DWARKA EXPRESSWAY Sectors 37C, 37D, 99, 99A, 101, 102, 103, 104, 105, 106, 107, 108, 109, 110, 110A, 111, 112, 113, 114 and 115 Fig 1: Map of the corridor
02 About the Corridor Introduction: The Dwarka Expressway or the Northern Peripheral Road (NPR) Corridor covers new development areas along and off the Dwarka Expressway from Sector 37C in the south to Sector 115 in the north. Except for Sector 37C and 37D, all other sectors fall west of the Delhi-Rewari Railway Line which marks the eastern boundary of the corridor and separates it from old established areas. While the Expressway continues further south from Sector 37D, only the portion till Sector 37D has been considered as this area is most dependent on operationalization of the Dwarka Expressway. This corridor is import as it accounts for significant development activity. It is home to more than 100 residential projects with 50,000 plus residential units between them. The entire corridor, encompassing residential projects and infrastructure (roads, water, sewerage, electricity), is in various stages of development. The corridor has seen participation by end-users and investors alike and hence, lot of public interest is riding on the development of this corridor. Current Status: 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 of 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 Rs 4,000-9,000 per sq ft. The average price level in the same is Rs 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. In terms of acquisition cost (Rs lakh), almost one fourth supply in the corridor is in the Rs 60-80 lakh bracket. This is followed by the Rs 80 lakh to Rs 1 crore segment. About 55% of supply in re-sale market is in the Rs 60 lakh to Rs 1.2 crore range. The price levels across most sectors has remained stagnant for some time and this situation is likely to persist in the short to medium term. The corridor presently lacks social and support infrastructure. A few schools have opened in the corridor but for all its major and minor requirements, the projects in the corridor for foreseeable future will have to rely on infrastructure in the east of the Delhi-Rewari Railway Line in old areas of Gurgaon. New Development Policies & Impact on Dwarka Expressway: The Haryana Government has introduced two new policies which will impact the real estate sector in terms of supply and price levels. These policies are: a) New Integrated Licensing Policy 2015 (NILP-2015): Under NIPL-2015, the minimum area norms for developing a residential plotted colony has been reduced from 100 acre to 25 acre. Earlier the residential development was restricted to 20% of the net planned area of a sector and balance land remained unused. Under NILP-2015, licenses will be granted for area beyond 20% allowed in each sector for Group Housing. Land which was hitherto lying unused will become available for developing residential colonies. This means an additional supply in the form of residential plots and Group Housing will enter the market in due course of time. This will help to keep the land value and price of endproducts at a low level. The overall price level in the market will remain stable as more land becomes available through this policy. b) Transit Orient Development (TOD) Policy: The state government has come out with the Transit Orient Development Policy which aims to encourage commercial & residential development along the Mass Rapid Transit System (MRTS) Corridor. Under the policy, areas which fall under certain distance on either side of the MRTS Corridor will be eligible for increased Floor Area Ratio (FAR). This will be available even if applicable FAR as per original development norm for the area has been exhausted. Dwarka Expressway has a Metro Corridor planned along its alignment. The area on either side of the expressway will be eligible for higher development. This will put more residential and commercial developments in the market. The increased supply under the two new policies will add to more supply in the market and this in turn, is likely to keep prices at a stable level. Present Status: The Northern Peripheral Road (NPR), more famously known as Dwarka Expressway, is a 150 meter wide and 18 km 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 (14 km out of 18 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 summarize the present scenario with respect to NPR and also highlight the key challenges holding up the completion of the road. a) 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 National Highway Authority of India (NHAI). This is expected to speed up clearance of pending issues. NHAI is in the process of undertaking a Detailed Project Report (DPR) of the expressway. However, the timelines for actual process of final notification and takeover by NHAI are not clear at present. b) HUDA is planning to make 13.5 km stretch
03 of Dwarka Expressway operational by August 2016. This stretch is free of any 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. c) The Haryana Urban Development Authority (HUDA) had 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 alternate 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. d) The final 1.3 km 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. e) 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. f) There are other flyovers planned at some critical junctions along the expressway but their development timelines are not clear. Outlook: Dwarka Expressway offers a relatively less expensive residential option to consumers along with integrated development of commercial and retail segments. The corridor has potential to evolve into a stand-alone hub independent of main Gurgaon. However, delay in completion of the Dwarka Expressway is the biggest bottleneck facing the corridor. Given the present situation, completion of the Dwarka Expressway will take at least another 2-years. However, the silver lining is the announcement of NH status to the highway. Once the Dwarka Expressway comes under NHAI, it will help to address a number of bureaucratic hurdles. For example, the issue of inter-state coordination for completing the expressway on the Delhi side will get addressed as a single body (NHAI) will be responsible for the whole expressway. Even the planned partial operationalization of the expressway and connectivity to Gurgaon will add some impetus to the residential segment in the corridor. Price levels are expected to remain stable in the medium term as unsold inventory will take some time to clear. Purchasing a residential option in the market is advisable for those who are looking for relatively less expensive options with proximity to both Gurgaon and Delhi. However, consumers need to keep a 2-3 year window before the corridor takes shape of a habitable area with proper physical and social infrastructure. Overall Connectivity Social Infrastructure Security/Water 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 Rs. 40 lacs 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 lacs, 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 Fig 2: Distribution of properties by price Fig 3: Distribution of properties by delivery status Fig 4: Distribution of properties by bedroom configuration
04 Table 1: Sizes and prices of flats available for various room configurations Sales Price Covered Area ( Lacs) (Sq.ft) 1 12-40 500-650 2 20-100 900-1550 3 10-150 1400-2500 4 BHK and above 90-300 2200-3500 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 3 BHKs, which form more than 50% of the total supply, followed by 2 BHKs, forming another 30%. 4 BHKs and above forms another one eight of the corridor s supply, leaving just 5% for 1 BHKs. The corridor provides a moderate range of choices for each bedroom configuration with prices varying along the length of the corridor, falling as one moves west on it, and away from Dwarka Sector 21. While the range of apartment sizes is rather large, the majority of configurations of 1, 2, 3 and 4 BHKs are around 610, 1,150, 1870, and 2,800 Sqft respectively. Best sectors to invest in a home Based on rental demand in sectors Fig 5: Top 10 sectors by consumer for renting a house The top sectors by demand are dispersed across the corridor, with sector 37C, which commands a whopping half of the demand for the corridor, being located on the farther end of the corridor from Delhi. The Based on home buying demand in sectors sector is closest to NH8 among all the sectors on the corridor and around 3 kms from Hero Honda Chowk. Sectors 112, 110A, 110, and 109 all lie very close to Dwarka Sector 21, and benefit from proximity to Delhi, and Udyog Vihar. Sector 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 widely, ranging between low of 2.2% and high of 3.8%. Fig 6: Top 10 sectors by consumer for buying a house
05 The home buying tendency follows closely with the renting seeking 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 consumer searches for renting in a house. The property prices available in the corridor are reasonable and provides potential return on investment. Best bedroom configurations to buy Preferred buying and renting options Table 2: Demand distribution for buying and renting Buying Renting Total (BHKs) Total (BHKs) 1 BHK 5% 3% 2 BHK 30% 32% 3 BHK 53% 57% 4 and Above 13% 7% As most of the recent demand is driven by end use rather than investment, the buyers are looking for bigger apartment types in the market suitable for living. As a result, the dominant BHK type for both buying and for renting-in is the 3 BHKs, followed by 2 BHks. 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 witnessed 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 Historic Price movement Table 3: Historical Price changes 6 monthly change Yearly change -5% -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 post resolution of the dispute for the land under Dwarka Expressway, the same 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 expect that the prices have hit the bottom, and will not fall drastically goring forward. Corridor Average Price Rs/sqft Fig 7: Historical Price changes of corridor
06 Price movement for top sectors by Consumer Preference The various localities in the corridor has given mixed price variations over the last quarter, with three of the two corridors witnessing a fall in the prices. The 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. Fig 8: Price changes in top sectors by consumer demand Master Plan Fig 9: Land use of various sectors in the corridor RESIDENTIAL COMMERCIAL PUBLIC AND SEMI-PUBLIC INDUSTRIAL OPEN SPACES The land use in corridor is mostly residential in nature, providing ample land for present and future development of residential projects. The sectors 106, 109, 112, and 113 have strips of land adjacent to Dwarka Expressway, which are commercial in nature. However, for the foreseeable future, the commercial space will be restricted to Cyber city area, Udyog Vihar, and Sector 21, which has Unitech SEZ. Besides the core land uses, every sector has options for commercial and institutional development on land adjacent to highways and broad roads, and the social infrastructure is expected to improve in the foreseeable future, even though the corridor does not have many facilities currently.
07 Infrastructure Updates Dwarka Expressway: It has been long in planning and progress has been stagnant for some time due to land litigation issues, with home owners losing land to the expressway contesting the compensation in Chandigarh High court. However, the issue has been settled last year, and the construction for the remaining stretch of the corridor is expected to resume soon. The finished corridor will connect to Dwarka sector 21 on one end, which also operational metro, and NH8 on the other end, providing full mobility to the population living on the corridor. Delhi Metro: In the next phases of the Delhi Metro, where metro will be further extended to the satellite towns like Gurgaon, and Noida, as part of Gurgaon Masterplan, the metro will be running in between Dwarka Expressway, connecting to Sector 21 station in Dwarka on one end, and towards the metro line which will be coming from Huda City Centre side. However, there is no definite timeline to the projects. IN NEWS Dwarka Expressway: Realty hotspot in NCR Spurred by affordable property prices, proximity to Delhi, Gurgaon, and the Indira Gandhi International Airport as well as infrastructural advantages, the Dwarka Expressway area has not only emerged as a hotspot in the Delhi NCR region but has also become a favourite destination for property buyers in recent years. The stretch has been planned as an alternate link road between Delhi and Gurgaon, and is expected to ease the traffic situation on the Delhi-Gurgaon Expressway. Plans are also to bring a Metro line to this area, which will further improve its connectivity with other areas. Source: The Times of India Dwarka Expressway is top investment destination Dwarka-Gurgaon Expressway, also known NPR (Northern Peripheral Road), is a Huda (Haryana Urban Development Authority) project designed to ease traffic rush on the operational Delhi-Gurgaon Expressway (Delhi-Jaipur Highway). Dwarka Expressway is the state government s widest-ever-150 metre-expressway project that connects NH-8 at Kherki Daula to Dwarka. Of the 630 acres needed to construct the expressway, 600 acres have already been acquired and the rest is expected to be acquired soon. More than 33,000 houses, with an approximate sale value of 8,000 crores, are under construction in different sectors along Dwarka Expressway. As Dwarka Expressway is close to Gurgaon, there is a huge demand for quality residential space and infrastructure. Source: The Times of India Top 5 reasons to invest in Dwarka Expressway Dwaraka Expressway is one of the most sought after markets. The locality has been growing slowly and witnessing potential infrastructural development. It is an ideal spot for investment purpose. Investors who are looking for better returns can invest in this locality to reap huge return on investmnet in the long term. Its close proximity to Delhi and IGI Airport will always ensure a better lifestyle and price. In fact, the connectivity is quite good in the locality through all modes of communication. It will be parallel to the NH8 till it merges ahead of the IFFCO Chowk. The locality is considered a potential growth corridor. Source: Magicbricks Bureau Huda to speed up Dwarka e-way work The Dwarka Expressway work, which is planned to ease connectivity, will soon speed up the construction work. The government has asked the urban development agency to speed up the process of allotment of alternative plots to the families affected by the project. Moreover, there is a proposed infrastructure to build a railway over-bridge near Basai. Indian Railways will streamline the work and ensure completion of over-bridge on time. The expressway was planned to decongest traffic in Gurgaon by allowing vehicles from Jaipur to skip the expressway and head towards Dwarka and IGI Airport. Huda had subsequently offered the rehabilitation plan, paving the way for construction of a 2.5km stretch of the road. Source: The Times of India
MOST POPULAR PROJECT in Dwarka Expressway http://magicbricks.com/investment-hotspots/gurgaon/dwarka-expressway/ KEY DEVELOPERS in Dwarka Expressway http://magicbricks.com/investment-hotspots/gurgaon/dwarka-expressway/ PROJECT SUMMARY BY POSSESSION STATUS in Dwarka Expressway http://magicbricks.com/investment-hotspots/gurgaon/dwarka-expressway/ PROJECT SUMMARY BY BUDGET in Dwarka Expressway http://magicbricks.com/investment-hotspots/gurgaon/dwarka-expressway/ CONTACT US Join our discussion forum at - openhouse.magicbricks.com For business enquiries - sales@magicbricks.com D I S C L A I M E R Every effort has been made to make this report as complete and accurate as possible. MagicBricks accepts no responsibility for inaccuracies in the information/data contained in this report. It shall have neither liability nor responsibility to any person or entity with respect to any loss or damage caused, or alleged to have been caused, directly or indirectly, by the information contained in this report. The information/data in this report is subject to change from time to time due to market condition.