Prime Minister Narendra Modi on March 11 inaugurated the Haryana section of the Dwarka Expressway. This is expected to improve traffic flow and ease congestion between Delhi and Gurugram on NH-48. Real estate experts say that the Dwarka Expressway has of late emerged as a major residential hub in Gurugram and going forward it is expected to witness the launch of commercial and retail projects, as well as high-quality residential properties. Housing prices too are likely to inch up with the expressway now becoming operational.
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The Haryana section of Dwarka Expressway has been built at a cost of around ₹4,100 crore and includes two packages of 10.2-km Delhi-Haryana Border to Basai Rail-over-Bridge (ROB) and 8.7-km Basai ROB to Kherki Daula.
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It will provide direct connectivity to the IGI Airport in Delhi and the Gurugram Bypass. It has been planned to provide an alternate link between Delhi and Gurugram to help reduce traffic congestion.
Emergence of residential clusters along Dwarka Expressway
According to an analysis by JLL, Dwarka Expressway has facilitated the development of residential clusters along the expressway and improved connectivity between Delhi and Gurugram. It appears that the region has evolved into a priority development zone leading to the cluster’s overall expansion.
In the calendar year 2023, a total of 12,409 housing units were sold in this submarket which was 66% of the overall sales in Gurugram. Sales were up by 67% as compared to 2022. These homes were worth a whopping ₹25,000 crore. Interestingly, out of these 12,409 units, 97% were under construction at the time of sale. This shows the increasing consumer confidence in under construction projects as they are getting delivered on time, the JLL analysis noted.
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The Dwarka expressway – New Gurgaon cluster has become the new hotspot for premium launches in Delhi NCR. In 2023, a total of 11,270 housing units were launched in this submarket, which was 69% of the overall launches in Gurugram. Launches were up by 166% as compared to the previous year as 4,231 units were launched in 2022, the analysis said.
“Notably, high-end projects are also getting launched in this submarket. As many as 38% of the new launches in this cluster were priced at ₹2.5 crore or above. The project launches garnered good traction in terms of demand and few of them were fully sold in a few days of the launch,” said Samantak Das, Chief Economist and Head Research; REIS, India, JLL.
Around 175 acres of land across 17 separate deals valued at over ₹3,100 crore have been acquired by real estate developers since CY2022 in this submarket.
“Around 175 acres of land across 17 separate deals valued at over ₹3,100 crore have been acquired by real estate developers since 2022 in this submarket. Apart from outright purchases, developers have signed JDAs/JVs for over 30 acres in the last year in this submarket to develop real estate projects” said Ritesh Mehta , Senior Director and Head (North and West), residential services and developer initiative, JLL India.
Over 11,000 housing units were completed in 2023 in this cluster. This submarket holds 29,742 under construction units in the pipeline. Notably, 45% (13,476) of the under-construction inventory is likely to be completed in 2024.
The submarket’s average capital value in 2023 was approximately ₹10,000 per sq. ft, a 15% rise from 2022. A more reasonable price increase should be anticipated as the launches in each of the submarket’s segments continue to roll out. Given the strong demand from buyers, new phases of previous projects are entering at greater prices, according to the JLL analysis.
“While the project missed many deadlines, its inaugural today will inevitably boost the real estate prospects of the area because of improved infrastructure in and around the region. Moreover, we will see more than 10,515 housing units ready for possession within the next two years in the region,” said Santhosh Kumar, vice chairman, ANAROCK Group.
Impact on demand and prices
Improvement in connectivity has led to an increase in demand from end-users, especially from Dwarka and other parts of West Delhi. Most of these buyers are looking at upgrading their lifestyle by moving into apartments that offer modern amenities, especially dedicated parking spaces.
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As per ANAROCK Research, nearly 53,030 units have been launched here between 2013 and 2023 across various budget segments. Average property prices in the region went up by a significant 41% between 2020 and 2023 – from ₹5,890 per sq. ft. in 2020 to nearly ₹8,300 per sq. ft. in 2023. This is likely to further head north with the Expressway now getting operational.
The project is set to revolutionize connectivity between Delhi and Gurgaon. As the expressway weaves through key areas like Harsaru, Pataudi Road, Farrukhnagar, and various sectors in Gurugram, it not only reduces travel time but it is also expected to propel demand for real estate in newly developed sectors, which were subdued due to lack of easy and quick accessibility. “This transformative link between Dwarka Sector 21 and Indira Gandhi International Airport is a testament to the government’s commitment to enhancing the lives of citizens and fostering growth in adjacent localities,” said Mudassir Zaidi, Executive Director – North, Knight Frank India.
Gundeep, founder and CEO, Simplease, points out that Dwarka Expressway has seen an increase in property prices over the last two years. New launches for marquee developers are expected to be upwards of ₹20,000 per sq ft going forward.
The area has of late witnessed a surge in property prices primarily on account of demand emanating from Delhi. “Several people from Dwarka and parts of South Delhi are looking to migrate to the area given the area’s proximity to the Capital. Buyers prefer the lifestyle and amenities that are available in residential projects in the area,” he said.
Pradeep Mishra, founder, Homents, and a real estate expert, said the inauguration of the Dwarka Expressway will enhance connectivity to the area and propel more end-users to invest in properties along the belt.
The back story
Mishra, who has been brokering properties in the market since 2011, points out that most of the projects launched along the stretch way back in 2011 were priced around ₹2500 to ₹2700 per sq ft. These increased to around ₹3500 per sq ft in 2012. A few developers who entered the market in 2013-end launched projects at ₹6000 to ₹7000 per sq ft. However, it was only after COVID-19 that prices inched up slightly to touch ₹7500 per sq ft but the focus was on unsold inventory.
News that the stretch would finally be inaugurated had an impact on real estate prices in 2022-2023 with most new projects being launched at around ₹10,000 per sq ft. Going forward, the market is expected to witness new launches, primarily in the luxury segment, priced at ₹18,000 to ₹19,000 per sq ft on the back of enhanced connectivity. Housing units in the secondary market are currently trading at ₹13,000 to ₹15,000 per sq ft, he said.
“The market is of late witnessing increased traction among buyers from West and South Delhi wanting to move to apartment complexes that offer modern amenities and dedicated parking spaces. Non-resident Indians have also invested in projects along Dwarka Expressway,” he said.
According to Vineet Chellani, founder and CEO of Asset Deals, the market has witnessed appreciation in property prices since the last four years. Most buyers are end-users who have sold properties in South and West Delhi and moved into apartment with modern amenities. He is of the opinion that prices in the area are likely to go up further. “Commercial properties too will witness increased traction going forward,” he said.
According to CBRE India, there has been a considerable price appreciation across residential segments along the belt, especially premium and luxury segments. Prices of luxury projects ( ₹4 crore plus) went up from 12% in 2022 to 26% in 2023. The premium segment ( ₹2 crore to ₹4 crore) saw prices increasing by 19% in 2022 and 34% in 2023. Prices of mid-segment housing ( ₹45 lakh to ₹1 crore) projects went up from 10% in 2022 to 12% in 2023.
Planning to rent an apartment?
A 3BHK unit in a gated community in Dwarka Expressway can put you back by around ₹30,000 to ₹40,000 per month for a 1500 to 1800 sq ft apartment. Rent for a 2BHK is slightly lower. Rents for 4BHK units are in the range of ₹45,000 to ₹50,000 and for villas around ₹1 lakh to ₹1.5 lakh per month, he says. There are also a few studio options available along the belt, says Mishra.
Unsold inventory
Dwarka Expressway is bound to redefine the real estate landscape in the vicinity. The anticipation surrounding the expressway over the last decade has already ignited a surge in residential development, especially in sectors bridging Gurugram and Delhi.
“With the expressway now complete, we are witnessing a promising downturn in unsold inventory levels in these sectors, from a significant 25-30% 8-10 years ago to a mere 7-8% now,” said Anshuman Magazine, chairman and CEO – India, South-East Asia, Middle East & Africa, CBRE.
Future potential
With the expressway getting operational, all stakeholders will benefit from this important public infrastructure project that will also have a positive impact on all types of assets. Retail and commercial developments will follow in the future, the JLL analysis noted.
In the coming years, the belt is expected to witness the launch of commercial and retail projects, as well as a growing supply of high-quality residential properties. Developers will keep on purchasing land parcels to start new residential developments in line with increasing demand. Residential launches will continue to gain momentum across all price bands, it said.
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