Gurgaon witnesses maximum appreciation

[SKD]

Gurgaon leads the National Capital Region (NCR) with maximum rise in property values in areas such as Dwarka Expressway, National Highway 8 (NH 8) and Sohna Road, according to a recent study conducted by property consultants Jones Lang LaSalle. As the (NCR) continues to be an investment destination for maximum property buyers and investors some areas within the region has seen more than 20 per cent appreciation in capital values over the last four years.

Capital values of properties launched in 2008 have increased the most in Gurgaon. While properties near the NH 8 appreciated up to 26 per cent, it went up to 25 per cent in Dwarka Expressway since 2008. For example, projects closer to the NH 8 were launched in the range of Rs 2,400-2,550 per sq ft. The same projects are now offering units at Rs 4,300-5,000 per sq ft.

Similarly, in 2008, properties launched on the Dwarka Expressway stretch were being sold in the range of Rs 2,700-3,100 per sq ft. In 2012, the same are now available in the range of Rs 4,500-5,200 per sq ft. Sohna Road too appreciated up to 25 per cent. The areas that follow Gurgaon in terms of appreciation are the Noida-Greater Noida Expressway, where properties have appreciated to 6-10 per cent as compared to the 2008 levels. Faridabad lags every other region in the NCR as rates have moved slightly since 2008.

“Unlike other regions in the NCR, Gurgaon has seen good appreciation because of two reasons- one the region has a good mix of actual end users and investors. Investors here are long-term, who stick with the project for long. And second, the city offers better job scenario in comparison to Noida or Faridabad. So there is always a healthy housing demand,” said Amit Gupta, managing director, Orris Infrastructure, a Gurgaon-based real estate firm.

Dwarka Expressway and new sectors on both sides of NH-8 up to Manesar are part of the Master Plan 2021. As a result, infrastructure development in these sectors is now being taken up actively to support the large residential projects expected to reach completion over the next 3-5 years. Citing reasons for Gurgaon’s appreciation, Santosh Kumar, CEO-operations, Jones Lang LaSalle India said, “Gurgaon offers the highest advantages in terms of connectivity, job generation and investment potential. The demand for residential units in the region remains buoyant, with property prices increasing by 30-35 per cent in Gurgaon’s residential sector in 2011.”

Other than better job scenario and improved infrastructure of Gurgaon, Noida and other cities lack policies which favour quick development. “In Gurgaon the land owned is 100 per cent in control of the landowner. In comparison, land in Noida is leasehold. Thus land policy in Gurgaon favour quick sale and quick development of a project. In Noida the same is not possible due to the interference of the authorities,” adds Gupta of Orris Infrastructure.

Faridabad is still grappling with poor infrastructure. Even the data from MagicBricks.com corroborates the trend. Due to the huge demand for large spaces, Gurgaon is witnessing a constant supply in new-developing sectors such as sectors 82, 92 and 93 and regions along the Dwarka Expressway stretch. The maximum supply came in the price bracket of Rs 1-2 crore and Rs 60 lakh to 1 crore.