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Journalism of Courage
The stretch called New Gurgaon is the closest in terms of proximity to Dwarka and West Delhi once the Dwarka Expressway will be operational. It is also close to the international airport. The remaining stretch towards Manesar will also see improved connectivity going forward.
Land had been acquired at low prices by developers and hence this stretch saw a lot of developments launched in the affordable to mid-sized market segment of residential housing. In fact,these areas are now emerging as the answer to the question of what will fill the gap for mid-income housing demand that is not being adequately addressed in Gurgaon.
Gurgaon has been diverted to this region. With prices being similar to those for developments in Noida,New Gurgaon has the potential for providing competition to Noida.
The area witnessed a peak during the middle half of 2010. However,as things stand,a generic price rise of between 15 per cent and 20 per cent has dampened demand from price-sensitive buyers,and project-level sales volumes have dipped. If prices do not move further upwards,this region will lose its advantage of being an affordable residential zone.
The rates were in the range of Rs 2,300-2,400 per square feet and have now reached a high of Rs 3,300-3,550 per square feet. The development of the Dwarka Expressway and other infrastructure initiatives announced by the authorities may bring about further price rises in future.
As of now,new projects being launched at the higher price levels are unable to achieve appreciable sales figures. It reflects the fact that the consumer eyeing this location is extremely price sensitive. Going by the huge demand for homes in New Gurgaon less than a year ago,it can be said that this region will only regain actual residential property absorption at price points at least 20-25 per cent lower than current levels. This is a clear signal for the developers.
New Gurgaon has good potential as a future residential hub,one that is of high importance to home-buyers as well as long-term investors. That said,it is the pace of construction in launched projects and the quality of construction that will determine the future skyline of this area. l
The author is CEO – Operations,Jones Lang LaSalle India
